The Global Market for Li-ion Battery Recycling 2025-2045

April 2025 | 200 pages | ID: G0A0A3F9B34EN
Future Markets, Inc.

Abstracts

The global market for lithium-ion battery recycling has seen surging growth in recent years driven by escalating consumption of lithium-ion batteries in electric vehicles, energy storage systems and consumer electronics. As lithium battery usage continues to accelerate, recycling will become ever more critical to recover valuable battery materials like cobalt, nickel, lithium and provide a sustainable, closed-loop supply chain. As the first wave of electric vehicle batteries begins reaching end-of-life status, a significant 'retirement tide' is emerging. These batteries, with typical service lives of 5-8 years, represent both an environmental challenge and an economic opportunity.

China dominates this landscape, accounting for approximately 70% of global battery recycling capacity. Currently, established recycling facilities worldwide have a capacity of around 1.6 million tons annually, with projections indicating this will exceed 3 million tons when planned facilities come online. Asia leads with existing recycling capacity of more than 1.2 million tons per year, followed by Europe at 200,000 tons and North America at 144,000 tons. The sustainability imperative for Li-ion battery recycling extends beyond environmental concerns. As demand for critical minerals like lithium, nickel, and cobalt continues to surge—with lithium demand projected to increase sevenfold by 2040—a significant supply gap is expected to emerge around 2035. Battery recycling offers a strategic solution to reduce dependence on traditional mining operations while mitigating future supply disruptions.

Government regulations and investments are accelerating market development. In the U.S., the Department of Energy has committed $375 million to support Li-Cycle's recycling facility construction. Meanwhile, Europe's implementation of new battery regulations in 2023 has sparked significant industry growth, with Umicore announcing plans for Europe's largest battery recycling plant with an annual capacity of 150,000 tons. The recycling process recovers valuable materials including lithium, cobalt, nickel, and increasingly, graphite. While historically recyclers focused on high-value metals, growing attention is being directed toward lower-value components like LFP (lithium iron phosphate) cathodes and graphite anodes, as these materials represent an increasing share of the battery market.

By establishing robust recycling infrastructure, battery manufacturers can shield themselves against volatile raw material prices, secure more stable domestic supply chains, and meet increasingly stringent regulatory targets across key regions. This circular economy approach ensures that the clean energy transition remains sustainable through the complete lifecycle of Li-ion batteries.

The Global Market for Li-ion Battery Recycling 2025-2045 provides an in-depth analysis of the rapidly expanding global Li-ion battery recycling industry, projected to reach US$52 billion by 2045. With detailed forecasts, technology assessments, and competitive landscape analysis, this report is essential for stakeholders across the battery value chain seeking to capitalize on emerging opportunities in the circular battery economy. Report contents include:

Market Forecasts 2025-2045: Granular 20-year projections broken down by region, battery chemistry, feedstock source, and recovered materials
Technology Analysis: Comprehensive evaluation of mechanical, hydrometallurgical, pyrometallurgical, and direct recycling technologies with SWOT analyses
Regulatory Landscape: Detailed analysis of policies and regulations across major markets including China, EU, US, India, South Korea, and Japan
Competitive Intelligence: Profiles of 118 key players with insights on recycling facilities, technologies, capacities, and strategic partnerships
Economic Assessment: In-depth analysis of recycling economics by battery chemistry, including cost structures and value recovery strategies
Emerging Innovations: Cutting-edge developments in direct recycling, graphite recovery, and alternatives to PVDF binders
Detailed breakdown of Li-ion battery components and chemistries
End-of-life management pathways and sustainability imperatives
Closed-loop value chain analysis for EV batteries
Global regulatory frameworks and policy trends
Comprehensive Technology Assessment
Mechanical pre-treatment processes and innovations
Hydrometallurgical recycling methods and economics
Pyrometallurgical approaches and limitations
Direct recycling technologies and commercialization timeline
Component-specific recycling strategies (cathodes, anodes, electrolytes, binders)
Market Analysis and Economics
Key market drivers and challenges through 2045
Investment landscape with $3.1B funding analysis
Partnership and supply agreement trends
Economic analysis of different recycling pathways
Second-life applications vs. direct recycling economics
Comparative economics by battery chemistry (NMC, LFP, etc.)
Regional Market Analysis
Strategic Forecasts (2025-2045)
Volume projections (GWh and kilotonnes)
Market value forecasts (US$B)
Chemistry-specific recycling trends
Recycling by feedstock source (EVs, manufacturing scrap, energy storage, consumer electronics)
Critical material recovery projections (lithium, nickel, cobalt, manganese, graphite)
Competitive Landscape
118 detailed company profiles across the recycling value chain
Facility capacities and technology approaches
Strategic partnerships and expansion roadmaps. Companies profiled include 24M, 4R Energy Corporation, American Battery Technology Company (ABTC), ACE Green Recycling, Accurec Recycling GmbH, Advanced Battery Recycle (ABR) Co., Altilium, Allye Energy, Anhua Taisen, Akkuser Oy, Aqua Metals, Ascend Elements, Attero Recycling, BASF, Battery Pollution Technologies, Batrec Industrie AG, Battri, Batx Energies, BMW, Botree Cycling, CATL, CellCircle, Cirba Solutions, Circunomics, Circu Li-ion, Cylib, Dowa Eco-System, Duesenfeld, EcoGraf, Econili Battery, EcoBat, EcoPro, Electra Battery Materials, Emulsion Flow Technologies, Energy Source, Enim, Eramet, Exigo Recycling, Exitcom Recycling, ExPost Technology, FAMCe, Farasis Energy, Fortum Battery Recycling, Fraunhofer IWKS, Ganfeng Lithium, Ganzhou Cyclewell Technology, GEM Co., GLC RECYCLE, Glencore, Gotion, Graphite One, Green Graphite Technologies, Green Li-ion, Green Mineral, GS Group, Guangdong Guanghua Sci-Tech, Huayou, HydroVolt, InoBat, Inmetco, J-Cycle, Jiecheng New Energy, JX Nippon Metal Mining, Keyking Recycling, Korea Zinc, Kyoei Seiko, LG Chem, Librec, Liebherr-Verzahntechnik, Li-Cycle, Li Industries, Lithium Australia (Envirostream), Lithion Technologies, Lohum, Mecaware, Metastable Materials, Mitsubishi Materials, NEU Battery Materials, Nickelhьtte Aue, Nth Cycle, OnTo Technology, Posco HY Clean Metal, Primobius, Princeton NuEnergy, ProtectLiB, Pure Battery Technologies, RecycLiCo Battery Materials, RecycleKaro and more......

Contents

1 INTRODUCTION

1.1 Lithium-ion batteries
  1.1.1 What is a Li-ion battery?
  1.1.2 Li-ion cathode
  1.1.3 Li-ion anode
  1.1.4 Cycle life and degradation complexity
  1.1.5 Battery failure
  1.1.6 End-of-life
  1.1.7 Sustainability
1.2 The Electric Vehicle (EV) market
  1.2.1 Emerging market for replacement battery packs
  1.2.2 Closed-loop value chain for EV batteries
  1.2.3 EV batteries longevity
1.3 Lithium-Ion Battery recycling value chain
1.4 LIB Circular life cycle
1.5 Global regulations and policies
  1.5.1 China
  1.5.2 EU
  1.5.3 US
  1.5.4 India
  1.5.5 South Korea
  1.5.6 Japan
  1.5.7 Australia
  1.5.8 Transportation
1.6 Sustainability and environmental benefits

2 RECYCLING METHODS AND TECHNOLOGIES

2.1 Black mass powder
2.2 Recycling different cathode chemistries
2.3 Preparation
2.4 Pre-Treatment
  2.4.1 Discharging
  2.4.2 Mechanical Pre-Treatment
  2.4.3 Thermal Pre-Treatment
  2.4.4 Pack-level/module-level shredding
  2.4.5 Sieving, eddy current & flotation methods
2.5 Comparison of recycling techniques
2.6 Hydrometallurgy
  2.6.1 Method overview
    2.6.1.1 Solvent extraction
  2.6.2 SWOT analysis
2.7 Pyrometallurgy
  2.7.1 Method overview
  2.7.2 SWOT analysis
2.8 Direct recycling
  2.8.1 Method overview
    2.8.1.1 Electrolyte separation
    2.8.1.2 Separating cathode and anode materials
    2.8.1.3 Binder removal
    2.8.1.4 Relithiation
    2.8.1.5 Cathode recovery and rejuvenation
    2.8.1.6 Hydrometallurgical-direct hybrid recycling
  2.8.2 SWOT analysis
2.9 Other methods
  2.9.1 Mechanochemical Pretreatment
  2.9.2 Electrochemical Method
  2.9.3 Ionic Liquids
  2.9.4 Hybrid hydrometallurgical-direct recycling technologies
2.10 Recycling of Specific Components
  2.10.1 Anode (Graphite)
    2.10.1.1 Overview
    2.10.1.2 Lab-stage graphite recycling (purity, microwave methods)
    2.10.1.3 Graphite companies
  2.10.2 Cathode
  2.10.3 Electrolyte
  2.10.4 Binder
    2.10.4.1 PVDF
    2.10.4.2 PFAS-free alternatives
2.11 Recycling of Beyond Li-ion Batteries
  2.11.1 Conventional vs Emerging Processes
  2.11.2 Li-Metal batteries
  2.11.3 Lithium sulfur batteries (Li–S)
  2.11.4 All-solid-state batteries (ASSBs)

3 GLOBAL MARKET ANALYSIS

3.1 Market drivers
3.2 Market challenges
3.3 The current market
3.4 Recent market news, funding and developments
3.5 LIB recycler partnerships and supply agreements
3.6 Economic case for Li-ion battery recycling
  3.6.1 Metal prices
  3.6.2 Second-life energy storage
  3.6.3 LFP batteries
  3.6.4 Other components and materials
  3.6.5 Reducing costs
  3.6.6 Economics by battery chemistry
  3.6.7 Recycling vs second life economics
3.7 Competitive landscape
3.8 Supply chain
3.9 Global capacities, current and planned
3.10 Future outlook
3.11 Global market 2018-2045
  3.11.1 Chemistry
  3.11.2 Ktonnes
  3.11.3 Revenues
  3.11.4 Regional
    3.11.4.1 Europe
      3.11.4.1.1 Regional overview
    3.11.4.2 China
      3.11.4.2.1 Regional overview
    3.11.4.3 Rest of Asia-Pacific
      3.11.4.3.1 Regional overview
    3.11.4.4 North America
      3.11.4.4.1 Regional overview

4 COMPANY PROFILES 111 (118 COMPANY PROFILES)

5 TERMS AND DEFINITIONS

6 RESEARCH METHODOLOGY

7 REFERENCES

List Of Tables

LIST OF TABLES

Table 1. Lithium-ion (Li-ion) battery supply chain.
Table 2. Commercial Li-ion battery cell composition.
Table 3. Key technology trends shaping lithium-ion battery cathode development.
Table 4. Cathode Materials Used in Commercial LIBs and Recycling Methods.
Table 5. Fate of end-of-life Li-ion batteries.
Table 6. Closed-loop value chain for electric vehicle (EV) batteries.
Table 7. Li-ion battery recycling value chain.
Table 8. Potential circular life cycle for lithium-ion batteries.
Table 9. Regulations pertaining to the recycling and treatment of EOL batteries in the EU, USA, and China
Table 10. LIB recycling policy summary by region.
Table 11. China regulations and policies related to batteries.
Table 12. Sustainability and environmental benefits of Li-ion recycling.
Table 13. Typical lithium-ion battery recycling process flow.
Table 14. Main feedstock streams that can be recycled for lithium-ion batteries.
Table 15. Comparison of LIB recycling methods.
Table 16. Direct Li-ion recycling technology by companies
Table 17. Directly recycled electrode costs vs virgin material.
Table 18. Feedstock types: scrap vs EOL batteries.
Table 19. Comparison of conventional and emerging processes for recycling beyond lithium-ion batteries.
Table 20. Market drivers for lithium-ion battery recycling.
Table 21. Market challenges in lithium-ion battery recycling.
Table 22. Recent market news, funding and developments in Li-ion battery recycling.
Table 23. LIB recycler partnerships and supply agreements.
Table 24. Economic assessment of battery recycling options.
Table 25. Retired lithium-batteries.
Table 26. Economics by battery chemistry.
Table 27. Recycling vs second life economics.
Table 28. Global capacities, current and planned (tonnes/year).
Table 29. Global lithium-ion battery recycling market in tonnes segmented by cathode chemistry, 2018-2045.
Table 30. Global Li-ion battery recycling market, 2018-2045 (ktonnes)
Table 31. Global Li-ion battery recycling market, 2018-2045 (billions USD).
Table 32. Li-ion battery recycling market, by region, 2018-2045 (ktonnes).
Table 33. Li-ion battery recycling market, in Europe, 2018-2045 (ktonnes).
Table 34. Li-ion battery recycling market, in China, 2018-2045 (ktonnes).
Table 35. Li-ion battery recycling market, in Rest of Asia-Pacific, 2018-2045 (ktonnes).
Table 36. Li-ion battery recycling market, in North America, 2018-2045 (ktonnes).

List Of Figures

LIST OF FIGURES

Figure 1. Li-ion battery cell pack.
Figure 2. Lithium Cell Design.
Figure 3. Functioning of a lithium-ion battery.
Figure 4. LIB cathode recycling routes.
Figure 5. Lithium-ion recycling process.
Figure 6. Process for recycling lithium-ion batteries from EVs.
Figure 7. Circular life cycle of lithium ion-batteries.
Figure 8. Typical direct, pyrometallurgical, and hydrometallurgical recycling methods for recovery of Li-ion battery active materials.
Figure 9. Mechanical separation flow diagram.
Figure 10. Recupyl mechanical separation flow diagram.
Figure 11. Flow chart of recycling processes of lithium-ion batteries (LIBs).
Figure 12. Hydrometallurgical recycling flow sheet.
Figure 13. TES-AMM flow diagram.
Figure 14. SWOT analysis for Hydrometallurgy Li-ion Battery Recycling.
Figure 15. Umicore recycling flow diagram.
Figure 16. SWOT analysis for Pyrometallurgy Li-ion Battery Recycling.
Figure 17. Schematic of direct recyling process.
Figure 18. SWOT analysis for Direct Li-ion Battery Recycling.
Figure 19. Schematic diagram of a Li-metal battery.
Figure 20. Schematic diagram of Lithium–sulfur battery.
Figure 21. Schematic illustration of all-solid-state lithium battery.
Figure 22. Li-ion Battery Recycling Market Supply Chain.
Figure 23. Global scrapped EV (BEV+PHEV) forecast to 2040.
Figure 24. Global Li-ion battery recycling market, 2018-2045 (chemistry).
Figure 25. Global Li-ion battery recycling market, 2018-2045 (ktonnes)
Figure 26. Global Li-ion battery recycling market, 2018-2045 (Billion USD).
Figure 27. Global Li-ion battery recycling market, by region, 2018-2045 (ktonnes).
Figure 28. Li-ion battery recycling market, in Europe, 2018-2045 (ktonnes).
Figure 29. Li-ion battery recycling market, in China, 2018-2045 (ktonnes).
Figure 30. Li-ion battery recycling market, in Rest of Asia-Pacific, 2018-2045 (ktonnes).
Figure 31. Li-ion battery recycling market, in North America, 2018-2045 (ktonnes).