Automotive Battery Recycling Market Size Projected to Generate $19,476.4 Mn by 2031Download Sample Reports Overview
The Global Automotive Battery Recycling Market Share is predicted to be valued at $19,476.4 million by 2031, surging from $11,003.9 million in 2021, at a CAGR of 6.0%.
Impact Analysis of COVID-19 on the Automotive Battery Recycling Market
The outbreak of COVID-19 has slowed down the global economy impacting the major dominating industries namely automotive, manufacturing, metals & mining, information technology, and others. Stringent government norms mainly social distancing, closure of manufacturing & recycling plants, nationwide lockdown, and others resulted in supply chain disruption across these major industries. The automotive industry was one of the major industries which experienced a significant downfall. The mines, refineries, and shipments of manufactured goods were severely affected owing to quarantine & stay-at-home orders, and travel restrictions. These factors have resulted in economic uncertainty, mass layoffs, and a decline in demand for automotive battery recycling. China, which is considered a major battery recycling hub has faced tremendous impact owing to the COVID-19 pandemic. Furthermore, recycling batteries helps in recovering essential metals and minerals from used batteries such as cobalt, lithium, lead, and others. The extraction of cobalt and other metals greatly affected the market due to the closure of battery recycling plants. These factors have negatively impacted the automotive battery recycling market size during the pandemic.
Global Automotive Battery Recycling Market Analysis
Automotive battery recycling reduces the need for raw materials and helps in conserving vital resources including minerals such as cobalt, nickel, and others. The raw materials required for manufacturing batteries such as lead, cobalt, nickel, and lithium are non-renewable and expensive to mine. Thus, recycling batteries helps in extracting these raw materials from the used batteries, which can be reused. Hence, battery recycling reduces the cost of new batteries by conserving raw materials, reduces pollution by preventing improper disposal of batteries, and contributes toward the economy. The recycling process consumes less energy compared to the energy required for manufacturing new batteries. Also, for achieving carbon neutrality by 2050, battery recycling is a primary option that reduces the dependence on natural resources and minimizes the environmental impact. These factors are anticipated to boost the automotive battery recycling market share during the forecast timeframe.
Apart from this, batteries comprise of hazardous chemicals that create significant impact while dumping or recycling. This is one of the major concerns slowing down the automotive battery recycling market growth. Recycling of automotive batteries, especially lead-acid batteries is a public health concern owing to the toxic emission of lead and high level of occupational exposure to toxic chemicals. These emissions affect the environment as well as humans & species significantly. Moreover, stringent regulatory norms to recycle batteries through a standard procedure are one of the major restraints slowing down the automotive battery recycling market growth.
Stringent government regulations regarding battery recycling & reuse ensure that batteries placed in the European Union (EU) market are safe and sustainable. For instance, the new Circular Economy Action Plan proposed by the European Commission that focuses on sustainable battery production is a major focus of the European Green Deal that contributes towards zero pollution. Such initiatives are necessary to decarbonize the economy and to promote clean energy and green transport. These initiatives aim at minimizing the environmental impact and ensuring that the batteries are safe, long-lasting, and at end of their life they are remanufactured, repurposed, or recycled which helps in feeding valuable materials back into the economy.
The regulations laid down by the European Commission also emphasize on requirements such as the use of responsibly sourced materials with restricted use of hazardous substances, reducing carbon footprint, enhancing the performance and durability of batteries, meeting the battery labeling requirements as well as collection & recycling targets. These regulations are essential for the development of sustainable and competitive battery solutions. Also, such measures will ensure the electrification of road transport, to reduce carbon emissions, and increase the uptake of electric mobility to facilitate a higher share of renewable sources in the energy sector. These factors are predicted to boost the automotive battery recycling market growth in the upcoming years.
Global Automotive Battery Recycling Market, Segmentation
The automotive battery recycling market is segmented on the basis of type, recycling process, and region.
The type of segment is further classified into lead-acid battery, lithium-ion battery, and others. Among these, the lead acid battery accounted for the highest market size in 2021. Lead-acid batteries are cost effective, efficient batteries majorly integrated into automobiles. Also, lead-acid batteries are most widely used as they are rechargeable and have the highest recycling rate. For instance, in the U.S., the recycling rate of lead-acid batteries is 100%, whereas, in Europe, the recycling rate is as high as 95%. All these factors are projected to drive the lead-acid battery sub-segment growth during the forecast period.
The recycling process segment is further classified into hydrometallurgical process, pyrometallurgy process, and others. Among these, the hydrometallurgical process sub-segment accounted for the highest market size in 2021. This is mainly due to the simple process involved which is ideally suited for lean as well as complex ores. It reduces environmental pollution to a greater extent and avoids the use of coke which is a costly reducing agent. In this process, even the waste liquor from the recovery step can be recycled. The hydrometallurgical process can be implemented for both small-scale and large-scale recycling of batteries.
The automotive battery recycling market in Asia-Pacific is projected to show the fastest growth during the forecast period. The major factors responsible for driving the regional market growth are the involvement of stringent environmental regulatory authorities to smoothen the recycling process, and massive investments from countries such as China and Japan to expand their recycling capabilities and geographical reach. For instance, in September 2021, Hydromet Solutions, India-based hydrometallurgy, mineral processing, and pyrometallurgy solution provider, planned to set up a lithium-ion recycling plant having a capacity of 1,000 tons per annum in Gujarat. All these factors are projected to boost the regional market growth during the forecast period.
Key Players in the Global Automotive Battery Recycling Market
Some of the leading automotive battery recycling market players are
- Li-Cycle Corp.
- Retriev Technologies Inc.
- American Manganese Inc.
- Envirostream Australia Pty Ltd
- Raw Materials Company Inc.
- Contemporary Amperex Technology Co. Limited (CATL)
- Neometals Ltd
- OnTo Technology LLC.
For instance, in June 2021, GEM Co, the China-based battery materials producer planned $48 million for the recycling of battery-grade cobalt and nickel. This would enable the company to plan to recycle 10,000 tons of nickel and cobalt from used and end-of-life batteries.