The global battery recycling market size was valued at USD 10.21 billion in 2021, and it is anticipated to reach USD 18.96 billion by 2030 at a CAGR of 7.12%. The majority of the tools and machines that we employ are powered either by batteries or by gas. Both of these components share the characteristic of being used right up until the point where they are completely depleted. When this occurs, it is common practice to either replace the petrol in the vehicle or the batteries in the car by purchasing new ones and disposing of the old ones.
However, improper disposal of batteries may result in a significant amount of garbage being released into the environment. In addition, batteries are used extensively and come with a great deal of potentially hazardous substances. Therefore, getting rid of them might not be the best decision in the world. Recycling your old batteries is a better option than simply throwing them away.
A battery is a substance that can convert chemical energy into electrical energy and incorporates electrochemical components. Recycling batteries entails reusing and reprocessing the batteries to cut down on the total number of batteries thrown away as waste material. The goal of this practice is to lessen the amount of material waste produced. The disposal of batteries, which can release toxic compounds and heavy metals into the environment, has raised worries about the state of the ecosystem due to the poisoning of water and soil. Therefore, recycling batteries is necessary to comply with environmental and health benefits requirements. Batteries that use lead-acid are among the types of batteries that are recycled the most frequently. The lead that is recovered during the process of recycling has the potential to be utilized as a raw material in the process of making batteries.
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The rise in discretionary money enjoyed by many people in different parts of the world has contributed to an increase in the overall level of demand for consumer electronics. The high living level of the population may also be one of the primary reasons for the enormous demand for electronics. Portable batteries are required for several technological devices. These batteries are included in the tonnes of electronic garbage produced each year; many of these tonnes comprise electronic devices. Therefore, the increased quantity of batteries that need to be disposed of could increase the number of recycling factories for batteries. The market for recycling batteries is being helped along by the elements listed here, which serve as growth accelerators.
It is possible that during the forecast, rising environmental concerns and a steady rise in the quantity of old lithium-ion batteries would serve as key growth drivers for the market for battery recycling. The widespread pollution of soil caused by the illegal dumping of batteries is the root cause of a wide range of environmental difficulties. There is reason to believe that a sizeable portion of the world's population is becoming more environmentally conscientious, which could result in significant expansion opportunities for the market for recycled batteries. In addition, government agencies in various nations actively support efforts to improve infrastructure for recycling used batteries. The market's growth trajectory for recycling batteries may benefit from including these variables.
The market for recycled batteries is seeing a sharp rise in the amount of capital invested. Several investment companies are spending their money believing that the market for recycling used batteries will soon have a prosperous future. Many market participants are additionally attempting to increase their recycling capacities. Recycling companies for electronic trash are aiming to make massive investments to expand their current capacity for recycling lithium-ion batteries by many orders of magnitude. The market for recycling batteries now has significant opportunities for expansion due to these innovations.
The market for recycled batteries is seeing a sharp rise in the amount of capital invested. Several different investment companies are placing their money in the battery recycling sector with the expectation that it will have a prosperous future. There are a lot of participants in the market for recycling batteries, and many of them are seeking to increase their recycling capacities. The market for recycling batteries is poised for significant expansion, thanks to several recent market changes.
Since the market is price-driven, growth throughout the projection period is anticipated to be constrained. Most recyclers employ the same technology, so cost becomes a crucial differentiating feature. High player rivalry prevents significant price variance, which lowers the profitability of recycling businesses.
By constructing new recycling facilities and collection sites, businesses are attempting to increase their level of competition. New techniques are also being developed to reduce expenses and stop environmental contamination. To collect used batteries, ECOBAT created its collection mechanism. New techniques are also being developed to cut expenses and stop environmental contamination.
The global battery recycling market share is broken down into three parts based on chemistry, Application, and region. Further, based on Chemistry, the market is divided into Lead-acid, Lithium-ion, Nickel, and Others. A wide range of advantages such as low cost, high dependability, high capacity, safety, and an extensive range of possible applications made lead-acid batteries the clear market leader in 2021. Over 95% of the lead in rechargeable lead-acid batteries can be recycled during the process of disassembling and reassembling the batteries. The market for lead-acid battery recycling is expected to rise in the coming years because of these advantages.
Electric vehicles rely heavily on lithium-ion batteries. The demand for recycled batteries is predicted to rise in the coming years due to the expanding automotive and transportation industries and the growing number of uses for these batteries.
Due to the high concentration of the heavy metal cadmium in nickel-cadmium batteries, nickel-metal hydride batteries are an essential alternative to this environmentally hazardous heavy metal. These batteries are perfect for electric vehicles and consumer electronics gadgets like smartphones and cameras. The improper disposal of nickel-cadmium batteries can leak harmful chemicals into landfills and underground waterways. Due to environmental concerns, the battery recycling market will likely grow during the forecast period.
By Application, the market is divided into Consumer Electronics, Industrial, and Transportation. In 2021, the transportation sector held a larger market share. Due to its capacity to give significant power to start an engine, batteries are frequently employed in cars. Future demand for battery-powered vehicles is anticipated to be fuelled by causes including rising income levels worldwide, a resurgence in interest in electric automobiles and other vehicles, positive electric infrastructure growth, and ongoing technology advancements. Several government regulatory authorities have implemented policies to assist the market for electric vehicles. Consumer preferences are predicted to shift toward electric vehicles due to environmental factors like rising pollution, energy depletion, global warming, and biological dangers, increasing the demand for recycled batteries.
Based on region, the market is broken down into North America, Europe, Asia-Pacific, Central & South America, and the Middle East & Africa. Asia-Pacific dominates the market.
Based on region, the market is segmented into North America, Europe, Asia-Pacific, Central & South America, and the Middle East & Africa.
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The Asia-Pacific region dominated the market for recycling used batteries. The dominance of this region is probably attributable to the rising demand for automobiles that can be traced back to an increase in the average per capita income. By 2020, the region has seen 11 million passenger light commercial automobile sales. Due to the increasing demand from end-use industries like the automobile, nations like China, India, and Japan are predicted to experience rapid growth.
In the years to come, the demand for battery recycling will be driven primarily by environmental concerns and an increase in obsolete lithium-ion batteries.
The recycling rate of batteries is anticipated to increase due to the European Union's recycling efficiency standards. According to the regulations, lead-acid, nickel-cadmium, and other chemistries require that approximately 75.0%, 65.0%, and 50.0% of the weight of batteries be recovered as recycled material.
In North America, used lead-acid battery recycling is around 100%. Around 99.0% of the lead in used products gets recovered in the U.S. Additionally; it is projected that the presence of essential recyclers like Call2Recycle, Aqua Metals, Enersys, and Battery Solutions, Inc. will fuel demand during the forecast period along with rising demand for electric vehicles and UPS systems in the commercial infrastructure.
Due to the increase in foreign investment in the region, Central and South America is anticipated to have significant market expansion.
In March 2022, Battery Solutions, a Detroit-based provider of end-to-end management solutions for end-of-life batteries and consumer devices, was bought by Indianapolis-based lithium battery recycling Retriev Technologies.
In June 2022, Toyota is collaborating with Redwood Materials, a lithium-ion battery recycling firm formed by former Tesla CTO JB Straubel, to gather, refurbish, and recycle batteries and battery materials that can be shipped to the Japanese automaker's future North Carolina battery plant.