Recycling of old batteries decreases waste, and as up to 99% of a lead-acid battery is recyclable, it also diminishes the necessity to use new raw materials and components. Nowadays, electric vehicles (EVs) are gaining huge popularity and their adoption has surged manifolds. EVs may not release carbon dioxide during their functioning; however, the batteries on which the run can cause a serious environmental issue after their lifespan ends.
In the next 10 to 15 years, a huge number of EV batteries will come to the end of their life, hence, it is highly essential to have a robust battery recycling industry in place.
China is the foremost electric vehicle market, which sold more than 1.18 million passenger EVs in 2019. The nation is not only at the forefront of the EV industry but has also developed a strong automotive battery recycling market to diminish the amount of harmful waste being discarded to the landfills. In 2019, India managed to sell merely 3,600 passenger EVs, however, the nation is gearing up to transform 30% of its automotive sales into e-mobility by 2030. Therefore, with notable increase in the number of EVs, it is essential to develop a strong infrastructure for recycling EV batteries to resolve the problem of e-waste. All this, indicates that the automotive battery recycling market is going to have a vibrant future in the future.
Latest Trends in the Automotive Battery Recycling Market
As per a report by Research Dive, the global automotive battery recycling market is expected to grow from $10,530.0 million in 2020 to $19,222.3 million by 2028. The automotive battery recycling market in the Asia-Pacific region is the most dominant and anticipated to grow rapidly with a CAGR of 8.5% from 2021 to 2028. This is mainly owing to the rising investments into battery recycling activities and surge in the development of battery recycling factories in this region. Market players are significantly investing in research and development to cater the mounting demand for automotive battery recycling. Some of the foremost players of the automotive battery recycling market are Li-Cycle Corp., Umicore, Envirostream Australia Pty Ltd, Duesenfeld, Raw Materials Company Inc., Contemporary Amperex Technology Co., Limited (CATL), American Manganese Inc., Neometals Ltd, OnTo Technology LLC., Retriev Technologies Inc., and others. These players are focused on forming strategies, for example, mergers and acquisitions, partnerships, novel developments, and collaborations to achieve a prominent position in the global market.
- In January 2019, the secretary of the U.S. Department of Energy (DOE), Rick Perry, proclaimed the formation of the DOE’s first Li-ion battery recycling research and development center, the ReCell Center.
- In December 2020, MG Motor India Pvt. Ltd, a new entrant in the Indian car industry, collaborated with TES-AMM, an electronic waste recycling company, to efficiently recycle the lithium batteries installed in its present and upcoming EVs.
- In January 2022, Stelco Holdings Inc., a company focused on the manufacture and sale of steel products, signed a Memorandum of (MOU) with Primobius GmbH, a battery recycling joint venture, in order to commercialize advanced EV battery recycling and processing machineries in North America.
COVID-19 Impact on the Automotive Battery Recycling Market
The abrupt rise of the coronavirus pandemic in 2020 has negatively impacted the global automotive battery recycling market. This is mainly due to the cessation of recycling & manufacturing factories due to the implementation of lockdown during the pandemic period. Also, a significant drop in the sale of EVs, due to economic uncertainties during the pandemic has hampered the market growth. However, as the worldwide economy is recuperating with the easing of pandemic, the automotive battery recycling market is expected to gain traction with a notable surge in the sale of EVs worldwide. This is likely to flourish the automotive battery recycling market in the forthcoming years.