Global Black Mass Recycling Market Grows Steadily at a CAGR of 16.52%

Introduction

The global black mass recycling market is witnessing strong growth, largely fueled by the increasing demand for key battery metals such as lithium, cobalt, nickel, and manganese, crucial components in electric vehicles (EVs) and energy storage systems. As the global adoption of EVs accelerates, ensuring a reliable supply of these materials has become essential, prompting industries to recover them from used batteries.

Additionally, the growing number of end-of-life lithium-ion batteries from EVs and electronic devices is also contributing to a consistent and economically viable supply of black mass for recycling. Furthermore, the industry’s shift toward circular economy models is encouraging manufacturers to reduce dependency on raw material extraction and lower their environmental impact. Strategic collaborations between battery producers and recycling companies are also strengthening the recycling infrastructure, enabling closed-loop systems that support sustainability objectives and long-term market expansion.

Market Dynamics

Environmental concerns & regulation drives the global market

The growing environmental concerns associated with spent lithium-ion batteries are leading to stricter regulations, which are significantly propelling the growth of the black mass recycling market. Governments around the world are increasingly emphasizing proper battery waste management to reduce pollution and conserve essential resources.

• For example, in March 2025, the European Commission designated black mass as hazardous waste, subject to the EU Waste Shipment Regulation and the Basel Convention. This move prohibits its export to non-OECD nations, aiming to preserve critical raw materials like lithium and cobalt within Europe and promote a circular economy. The newly assigned hazardous waste code (19 14 02) will be enforced from November 2026, ensuring consistent handling across EU countries.

These regulatory measures not only protect the environment and public health but also stimulate domestic recycling initiatives, fostering a more robust, transparent, and sustainable supply chain for battery materials.

The development of regional recycling hubs creates tremendous opportunities

The increasing volume of end-of-life lithium-ion batteries, along with the rising demand for battery metals, is encouraging the development of regional black mass recycling hubs. These localized centers help minimize transportation complexities, strengthen supply chain reliability, and promote a circular economy.

• For example, in April 2025, Redwood Materials, founded by former Tesla CTO JB Straubel, announced a significant expansion of its operations in Nevada. The company currently recycles more than 70% of lithium-ion batteries in North America and aims to produce 100 GWh of cathode-active materials annually by 2026, solidifying its role as a key recycling hub in the region.

These initiatives play a vital role in reducing dependence on imported materials, lowering emissions from traditional mining, and bolstering domestic supply chains. Similar approaches are also gaining traction in Europe and Asia, supported by favorable regulations and growing investment in clean energy infrastructure.

Regional Analysis

The Asia-Pacific region dominates the global black mass recycling market, driven by the region’s booming electric vehicle (EV) industry and extensive battery manufacturing base. Countries like China, South Korea, and Japan are major producers and consumers of lithium-ion batteries, resulting in high volumes of battery waste. In 2024, China accounted for over 60% of global EV sales, significantly increasing the demand for end-of-life battery recycling.

Additionally, initiatives such as India’s “Battery Waste Management Rules, 2022” are setting clear guidelines for recycling processes, encouraging investments. Companies like SungEel HiTech (South Korea) and GEM Co., Ltd. (China) are expanding their black mass processing capacities to recover critical materials like lithium and cobalt. With strong policy support, growing e-mobility adoption, and regional efforts to localize the battery supply chain, Asia-Pacific is expected to lead innovation and infrastructure development in black mass recycling.

Key Highlights

1. The global black mass recycling market size was valued at USD 02 billion in 2024 and is projected to grow from USD 15.17 billion in 2025 to reach USD 51.55 billion by 2033, growing at a CAGR of 16.52% during the forecast period (2025–2033).
2. By battery type, the global black mass recycling market is segmented into lithium-ion batteries and nickel-based batteries.
3. By battery source, the market is categorized into automotive batteries, consumer electronics, industrial batteries, and others. The automotive batteries segment dominated the market.
4. By recycling process, the market is divided into hydrometallurgical process and pyrometallurgical process.
5. By recovered metals, the market includes nickel, cobalt, lithium, copper, and others.
6. Asia-Pacific is the highest shareholder in the global market.

Competitive Players

1. Li-Cycle Holdings Corp.
2. Umicore N.V.
3. Redwood Materials, Inc.
4. Glencore plc
5. Fortum Oyj
6. American Battery Technology Company (ABTC)
7. Ecobat Technologies Ltd.
8. BASF SE
9. RecycLiCo Battery Materials Inc.
10. Neometals Ltd.
11. Primobius GmbH

Recent Developments

• In June 2025, BASF activated one of Europe’s largest black mass production plants in Schwarzheide, Germany. It processes up to 15,000 tons of end-of-life lithium-ion batteries annually (≈40,000 EV batteries), converting them into black mass for downstream chemical recovery of lithium, nickel, cobalt, and manganese. This facility marks a key step toward a fully integrated, circular battery materials ecosystem in Europe.

Segmentation

1. By Battery Type
   1. Lithium-Ion Batteries
   2. Nickel-Based Batteries
2. By Battery Source
   1. Automotive Batteries
   2. Consumer Electronics
   3. Industrial Batteries
   4. Others
3. By Recycling Process
   1. Hydrometallurgical Process
   2. Pyrometallurgical Process
4. By Recovered Metals
   1. Nickel
   2. Cobalt
   3. Lithium
   4. Copper
   5. Others
5. By Regions
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa