Battery recycling is the practice of collecting batteries through various sources such as consumer & electronic appliances, automotive, and other industries, and reprocessing & reutilizing the batteries to reduce the waste material produced due to battery scrap. Batteries come with heavy metals and toxic chemicals and its disposal has raised numerous environmental concerns as the battery waste contaminates surface water and ground water. Thus, batteries are recycled to prevent the damage and meet the terms of environment and health regulations.
COVID-19 Impact Analysis
The outbreak of COVID-19 across the globe has unfavorably impacted the global battery recycling market, owing to the decreased demand for electric vehicles and disruption in supply chain around the world. However, many governments worldwide are taking measures by providing economic stimuli to recompense for the impact of disruption in battery material supply chains and to increase the usage of renewable energy. For example, in May 2020, the government of France announced to provide approximately $8.7 billion funds mainly for the recovery of its auto industry. The aim of the government behind this funding is to incentivize the use of electric vehicles.
Key Developments in the Industry
The companies operating in the global industry are adopting various growth strategies and business tactics such as partnerships, acquisitions, business expansion, and product launches to obtain a leading position in the global industry, which is predicted to drive the growth of the global battery recycling market in upcoming years.
For instance, in December 2019, Umicore, a leading materials technology & recycling group, completed the acquisition of Freeport Cobalt’s cobalt refining & cathode precursor activities in Finland. The aim of the company behind this acquisition is to expanding its battery materials value chain. Umicore has various operations located in Wurope such as R&D, precursor production, refining, battery recycling, and cathode materials production.
In February 2021, Volkswagen AG, a leading automotive manufacturing corporation, opened its first recycling electric vehicle (EV) batteries plant in Salzgitter, Germany. The automotive manufacturer aims to industrialize the recovery of raw materials, including nickel, lithium, cobalt, and manganese, in a closed loop together with plastics, copper, and aluminum. Volkswagen plans to achieve a recycling rate of more than 90% over the long term.
In February 2021, Retriev Technologies, a leading battery recycling and management company. Entered into a strategic partnership with Marubeni Corp. to develop an innovative business model for end-of-life (EOL) lithium-ion batteries (LIB). Both the companies are working together to take valuable metals recovered from EOL LIB in order to expand the circular business model for EV battery-to-battery closed-loop recycling.
Forecast Analysis of Global Battery Recycling Market
The global battery recycling market is projected to witness a striking growth during the forecast period, owing to the technological advancements in battery recycling and the rising demand for electric vehicles (EVs) across the globe. Conversely, the complications related to lithium-based batteries and the technical issue such as lack of design for easy disassembly & recycling are factors expected to hamper the market growth in the projected timeframe.
The growing demand for recycled products & materials and the prevalence of coronavirus infection among the population across the globe and the increasing initiatives by governments across various nations for mass testing of people are the significant factors estimated to propel the growth of the global market in the coming future. According to a latest report published by Research Dive, the global battery recycling market is expected to garner $20,407.7 million during the forecast period (2021-2028). Regionally, the North America region is estimated to dominate in the global industry, mainly due to the growing adoption of renewable sources for generating the power and the presence of leading EV manufacturers in the region. The key players functioning in the global market include Call2Recycle, Inc., Exide Technologies, Battery Solutions, LLC, Umicore, Limited, Contemporary Amperex Technology Co., ENERSYS, Johnson Controls International plc, GEM Co., Ltd., Aqua Metals, Inc., and Fortum OYJ.