Market Overview
The North America lithium-ion battery recycling market size is estimated to reach USD 10821 million by 2030, with a CAGR of 40%.
Often referred to as a Li-ion battery, a lithium-ion battery is a type of rechargeable battery made up of lithium-ion cells. Electrolyte transports lithium ions from the negative electrode to the positive electrode during discharge and the other way around during charging. Lithium-ion batteries use graphite for the negative electrode and an intercalated lithium compound for the positive electrode.
Lithium-ion batteries include various valuable and essential materials, including cobalt, iron, and nickel, to name a few. Mining and processing metals like cobalt and nickel are expensive and bad for the environment, so it's best to recover and recycle these resources whenever possible. Rare metals like cobalt will only get more complicated to mine as time goes on, resulting in higher extraction costs.
Aside from the financial benefits of recycling precious battery parts, recycling batteries is also good for the environment, just like recycling plastics. Some of the metals described above are harmful, and if discarded in a landfill, they can contaminate the natural environment and our water supply.
Furthermore, the mining process is an especially harmful practice to the environment. The mining of the various elements used in lithium-ion batteries has several negative consequences, and the more we can recycle those materials, the less we'll have to mine them.
Market Dynamics
Market drivers
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Market growth will be driven by demand for cleaner power sources
The lithium-ion battery recycling industry is predicted to develop in future years as people become more conscious of cleaner energy sources. As a result, these batteries are being used in various applications for large-scale energy storage. According to a U.S. Energy Information Administration report, the utility-scale battery storage capacity added in 2017 in the U.S. was 240 MWh, generating 120 MW of power, with lithium-ion batteries accounting for almost 90% of that. As a result, as lithium-ion batteries in grid-scale battery storage grow, so does the requirement for replacement and recycling.
Another NREL analysis on grid-scale battery storage stated that lithium-ion chemistries would dominate the grid-scale battery storage market in the United States by 2020. Between 2010 and 2016, the cost of these batteries fell by 70%, and this trend is expected to continue in the future. As a result, the market in the region is stimulated.
Market restraints
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A major restraining factor is high capital investments and the absence of strict policies
Building new infrastructure necessitates a sizeable initial investment and dedicated supply and collection chains, which limits the lithium-ion battery recycling business. Furthermore, the lack of a suitable legislative framework for recycling battery materials in some countries may hinder industry progress. E-waste recycling is controlled at the state level in the United States, with only half of the states having rules. As a result, businesses find it challenging to navigate the patchwork of requirements if they wish to make their products more recyclable.
Segmental Analysis
The North America lithium-ion battery recycling market is divided into four segments: battery chemistry, source, recycling process, and end-user.
The North America lithium-ion battery recycling market is divided into lithium-iron-phosphate, lithium-manganese oxide, lithium-nickel-cobalt-aluminium oxide, lithium-nickel-manganese-cobalt, and lithium-titanate oxide categories based on battery chemistry. The lithium-manganese oxide segment dominated the market. Lithium-manganese oxide batteries are becoming more popular in electricity, gas, water meters, fire and smoke alarms, security devices, and other energy storage devices. Thus, an increase in demand for the applications mentioned above is expected to fuel demand for lithium-manganese oxide batteries, propelling the growth of the lithium-ion battery recycling market during the forecast period.
It is divided into four categories based on its source: electric vehicles, electronics, power tools, and others. The electronics segment had the most significant revenue share, which is expected to remain during the forecast period. The rising popularity of portable devices is a significant driver of lithium-ion battery adoption in consumer electronics devices. The critical battery chemistries used in the consumer electronics segment that is further recycled are lithium-polymer batteries, lithium-cobalt batteries, and others.
Furthermore, during the next ten years, the increasing dependence on highly efficient power sources in smartphones, laptops, and digital cameras will likely require a significant supply of lithium-ion batteries for recycling. As a result, profitable expansion in this market is expected throughout the forecast period. Furthermore, benefits associated with lithium-ion batteries, such as high energy density, minimal self-discharge, and low maintenance, are likely to propel the lithium-ion battery recycling market forward throughout the forecast period.
The hydrometallurgical, physical/mechanical, and pyrometallurgical processes are all part of the recycling process. The hydrometallurgical process segment led the market in terms of the recycling process. During the forecast period, the rise in demand for lithium-ion battery recycling in various applications such as electric vehicles, consumer electronics, and other industrial applications is likely to drive the lithium-ion battery recycling market.
Furthermore, advantages associated with the hydrometallurgical recycling process compared to other methods, such as low cost, low temperature, high energy efficiency, and less environmental pollution, are expected to propel the lithium-ion battery recycling market forward throughout the projected period.
It's divided into automotive, industrial, consumer electronics, and non-automotive categories based on the end-user. The non-automotive category dominated the market. Data centres in telecommunications, forklift batteries, emergency battery backup systems, UPS systems, standalone power backups, and renewable energy integration can benefit from second-life lithium-ion batteries. It is due to the high purity of recycled metals, including lithium, cobalt, aluminium, nickel, and others, which have qualities similar to those of newly manufactured materials. As a result, the reasons mentioned above are expected to propel the lithium-ion battery recycling market forward in the future years.
