Bruna Alves
Research lead covering environment and sustainability
Battery recycling worldwide - statistics & facts
The lithium-ion battery boom has only just begun, with global lithium-ion battery cell demand projected to reach 4,700 gigawatt-hours by 2030. With the growth in demand, so grow concerns about the future supply of the large volumes of minerals such as cobalt and lithium needed to fuel it, as well as the most circular way to dispose them once these batteries have reached the end of their lifetime. As such, a new industry is now developing around the recovery of valuable minerals from spent lithium-ion batteries. Still in its infancy, the global battery recycling market is projected to grow roughly seven-fold over the next decade, reaching 24 billion U.S. dollars by 2033.
Governmental bodies are also playing a role in the development of the battery recycling industry, and legislation aimed at increasing the rate of battery recycling is taking shape in different parts of the world. One such example is the European Union’s New Regulatory Framework for Batteries, approved in July 2023. It requires 90 percent of cobalt, copper, lead, and nickel, as well as 50 percent of lithium to be recovered from batteries by 2027.
A series of new recycling plants are already under construction across the globe, and many more projects have been announced. With global electric vehicle sales reaching record highs every year, the battery recycling industry currently has the odds in its favor.
The value of spent batteries
With widespread application in electronic devices, electric vehicles, and large-scale grid storage, lithium-ion batteries have become ubiquitous in modern society. These batteries contain a variety of minerals, some of them incredibly valuable. Lithium carbonate prices, which are the main contributor to battery cathode costs, have soared in recent years, estimated at 46 thousand U.S. dollars per metric ton in 2023. As demand for battery materials is set to continue growing over the next decades, and with the security of mineral supply sometimes uncertain, battery scrap can represent a significant source of battery minerals. The volume of battery materials available for recycling worldwide is forecast to reach 1.4 million tons by 2030, up from 200 thousand tons in 2020. By 2040, more than seven million tons are expected to be available.Governmental bodies are also playing a role in the development of the battery recycling industry, and legislation aimed at increasing the rate of battery recycling is taking shape in different parts of the world. One such example is the European Union’s New Regulatory Framework for Batteries, approved in July 2023. It requires 90 percent of cobalt, copper, lead, and nickel, as well as 50 percent of lithium to be recovered from batteries by 2027.
Notable players in the industry
In 2023, China stood as the undisputed leader in the battery recycling market; that year, it accounted for roughly 80 percent of the 340 gigawatt-hours of recycling capacity available worldwide. Its domination is forecast to continue well until the end of the decade, with a projected capacity of 1,100 gigawatt-hours in 2030. One of the largest lithium producers worldwide, Chinese company Ganfeng Lithium increased its recycling capacity to 200 thousand tons of lithium carbonate equivalent in 2023. Meanwhile, Europe and the U.S. are expected to grow their combined capacity share from six percent in 2023 to 18 percent in 2030, each with some 140 gigawatt-hours of capacity in the latter year.A series of new recycling plants are already under construction across the globe, and many more projects have been announced. With global electric vehicle sales reaching record highs every year, the battery recycling industry currently has the odds in its favor.
