Electric Vehicle (EV) Battery Recycling Market Size, Share, Growth Analysis, By Chemistry(Lithium-ion batteries, lead-acid, nickel, and others), By Process(Pyrometallurgical, hydrometallurgical, and others), By Application(Electric cars, electric buses, energy storage systems, and others), By Region - Industry Forecast 2024-2031

Electric Vehicle Battery Recycling Market Drivers

Increasing Demand for Electric Vehicles

• The demand for electric vehicle is increased due to growing global concerns regarding environmental impact and increasing pollution across the major cities. Petrol and diesel prices are increased recently so there is a need for fuel efficient vehicles, leading to surge in demand for electrically powered vehicles for travel, that generates the demand for batteries. Once these batteries reach end of their life, they can be recycled. For instance, 12m tons of lithium-ion batteries are expected to retire between the year 2021-2030 and it is expected to be recycled. Hence, the increasing demand for electric vehicle drives the growth of the electric vehicle battery recycling market.

Growing Demand for Recycled Products

• Various companies are working on the development of effective techniques to recycle lithium-ion batteries due to increasing demand for the recycled raw materials such as nickel, cobalt, lithium, and others. For instance, Redwood, the biggest lithium-ion battery recycling company in the US, aims to bring down battery costs by mass supplying materials derived from recycled cells.

Electric Vehicle Battery Recycling Market Restraints

High Operating Costs

• Electric vehicle battery recycling plant has much higher operating costs which restricts the development of large-scale second life battery. High operating costs are due to complex and challenging process are involved in the extraction of components like batteries as well as uncertainty related to safety, efficiency, and remaining lifetime of batteries sent for refurbishment. Further, lack of knowledge about the electric vehicle battery recycling is also hamper the market growth.