Most businesses have begun recycling lithium-ion batteries as some raw materials such as lithium and cobalt have low accessibility
The Global Lithium-ion Battery Recycling market size is projected to reach $19380 million by 2026, from $2794.4 million in 2020, at a CAGR of 38.1 per cent during 2021-2026.
Major factors driving the growth of Lithium-ion Battery recycling market size are, decreasing lithium-ion battery prices, increasing electric vehicles’ adoption, rising concerns about battery waste disposal and strict government policies.
Growing investments in electric vehicle production
One of the key factors driving the growth of lithium-ion battery recycling market size is growing investments in electric vehicle production. Most businesses have begun recycling lithium-ion batteries as some raw materials such as lithium and cobalt have low accessibility.
“In the midst of policy-level measures to encourage renewable power generation and the massive deployment of electric vehicles, the power sector is experiencing substantial growth due to the need for energy storage solutions. Thus the increasing adoption of lithium-ion batteries in the power sector is, in turn, expected to increase the lithium-ion recycling battery market size,” read the Valuates Report.
Technological advancement is expected to increase the growth of the lithium-ion battery market size. Technologically advanced batteries are likely to create a huge incentive for battery recycling companies to invest and channel their capital into creating revolutionary technology for battery recycling.
Stringent government regulations and EPA guidelines imposed by countries around the globe are expected to drive the Lithium-ion battery recycling market size. Batteries come with a lot of heavy metals and hazardous chemicals. Direct disposal of batteries as waste has garnered environmental concerns owing to contamination of soil and water. Thus, strict rules are being imposed by governments worldwide to encourage recycling of batteries.
Due to the rapidly growing end-use industries, including automotive, consumer electronics and industrial applications, the Asia Pacific region is expected to be the fastest-growing Lithium-ion battery recycling market during the forecast period.