EV Battery Recycling Market to Grow from USD 0.54 Billion in 2024 to USD 23.72 Billion by 2035, at a CAGR of 40.9% — MarketsandMarkets™

Delray Beach, FL , Oct. 02, 2026 (GLOBE NEWSWIRE) -- MarketsandMarkets™ projects he global EV battery recycling market, by value, is estimated to be USD 0.54 Billion in 2024 and is projected to reach USD 23.72 Billion by 2035, at a CAGR of 40.9% from 2024 to 2035.  The EV battery recycling market is driven by the dual objectives of reducing environmental impact and addressing resource scarcity, particularly for lithium, cobalt, and nickel. Recycled materials are often less expensive than newly mined ones due to lower extraction and transportation costs. From a commercial standpoint, localized and alternate supply chains for EV battery recycled materials are crucial for reducing costs, ensuring sustainability, and mitigating supply chain disruptions. Governments worldwide are implementing stringent regulations to minimize battery waste and encourage circular economies, fueling the recycling industry’s growth. For instance, the Council of the European Union adopted new regulations to improve recycling rates and reduce raw material imports. These regulations place more responsibility on battery manufacturers. They must disclose the carbon footprint of their batteries and meet stricter recycling targets. According to International review on Recycling Ecosystem of Electric Vehicle Batteries, By the end of 2025, manufacturers must recycle at least 65% of a battery’s total weight, increasing to 70% by 2030. Such regulation will boost the growth of EV Battery recycling market.

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Key Market Highlights

• Market size, 2024: USD 0.54 Billion
• Market forecast, 2035: USD 23.72 Billion
• Growth rate: CAGR of 40.9% from 2024 to 2035
• Largest region, 2024: Asia Pacific
• Leading segment: Extraction of lithium will grow at higher CAGR during the forecast period.
• Report scope: 278 market data tables, 81 figures, 283 pages
• Key players: Contemporary Amperex Technology Co., Limited. (China), GEM Co., Ltd. (China), Umicore (Belgium), Glencore (Switzerland), Fortum (Finland).

Why This Market Matters

The rapid adoption of electric vehicles is increasing the volume of batteries that will eventually reach end-of-life, making efficient battery recycling critical for sustainable EV growth and resource security. Recycling enables the recovery of valuable materials such as lithium, nickel, and cobalt while reducing dependence on primary mining and helping strengthen battery supply chains. Stricter regulations, circular economy initiatives, and investments in localized material recovery are further increasing the importance of EV battery recycling across the automotive and energy ecosystem.

Market Overview

The EV battery recycling market is projected to grow from USD 0.54 billion in 2024 to USD 23.72 billion by 2035, registering a CAGR of 40.9% during the forecast period. Passenger cars are expected to remain the dominant vehicle type, while lithium is expected to be a key material extraction segment. LFP batteries are projected to record the highest growth among battery chemistries, supported by their increasing adoption in EVs. Hydrometallurgical recycling holds the largest share among recycling processes due to its ability to recover valuable metals efficiently with comparatively lower environmental impact. Asia Pacific is expected to maintain the largest market share, supported by its strong EV and battery manufacturing ecosystem and expanding recycling infrastructure.

Analyst Perspective

The EV battery recycling industry is shifting from a waste-management activity toward an important component of the battery supply chain and circular economy. As EV volumes increase, recyclers, battery manufacturers, and automakers are focusing on recovering higher-value materials and establishing closed-loop supply chains. Advances in hydrometallurgy, direct recycling, automated battery disassembly, and material sorting are expected to improve recovery efficiency and economics. The growing focus on localized supply chains also creates opportunities for recycling to support more resilient access to critical battery materials.

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Segment Analysis

Lithium is poised to experience a higher CAGR in the EV battery recycling market due to intensified initiatives by recyclers and OEMs to recover this critical material. The rising demand for lithium-ion batteries, driven by the global shift toward EVs, underscores the importance of securing a stable lithium supply. OEMs are increasingly integrating closed-loop systems and collaborating with recyclers to efficiently extract lithium from end-of-life batteries, ensuring resource sustainability while reducing reliance on mining. For instance, In September 2024, BMW of North America partnered with Redwood Materials to recycle lithium-ion batteries from its electric and hybrid vehicles, including BMW, Mini, and Rolls-Royce brands. Dealerships will send old batteries to Redwood's facilities in Nevada and South Carolina for processing, where key materials like cathodes and anodes will be recovered with a 95-98% efficiency rate for reuse in new batteries. Such developments towards recycling of EV batteries will boost the market growth in the forecast period.

Regional Analysis

Asia Pacific holds the largest share of the EV battery recycling market, subject to the region’s dominance in EV manufacturing and battery production. China, Japan, and South Korea are home to leading battery recyclers, such as CATL (China), GEM Co., Ltd. (China), and SungEel HiTech (South Korea). These companies have advanced recycling technologies and substantial investments in circular economy initiatives. China, in particular, benefits from stringent government regulations promoting battery recycling to address environmental concerns and ensure resource security. Additionally, the region’s vast EV fleet generates a steady stream of end-of-life batteries, fueling the demand for recycling.

Key Industry Trends

·Closed-loop battery recycling: Automakers and battery manufacturers are increasingly exploring recycling partnerships and material recovery systems to return recovered lithium, nickel, and other materials to the battery supply chain.

·Growth of LFP recycling: Rising adoption of LFP batteries is increasing the need for scalable processes capable of recovering lithium, iron, and phosphate from end-of-life batteries.

·Advanced recycling technologies: Hydrometallurgy and direct recycling are gaining attention alongside automated battery disassembly and advanced material-sorting technologies.

·Asia Pacific expansion: Strong EV production, battery manufacturing, government support, and established recycling players are reinforcing Asia Pacific's position as the largest regional market.

Competitive Landscape

Top companies in the EV Battery Recycling Market include Contemporary Amperex Technology Co., Limited. (China), GEM Co., Ltd. (China), Umicore (Belgium), Glencore (Switzerland), Fortum (Finland)

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Report Code: AT 8945 | Published: Feb 2025 | Report Pages: 283 | Market Data Tables: 278 | Figures: 81