Electric Vehicle Battery Recycling Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Source:

Based on source, the market is segmented into car manufacturers, dealerships, and battery service centers.

Trends in the Source:

• There is an increasing trend towards adoption of battery service centers for recycling of EV batteries.
• Rising adoption of EV battery recycling by car manufactures due to various benefits including end to end management of battery.

Dealerships accounted for the largest revenue in the total electric vehicle battery recycling market share in 2024 and it is anticipated to register the fastest CAGR during the forecast period.

• An EV dealership refers to a business which sells used and new cars through retail channel, based on dealership contract with an EV manufacturer.
• Further, EV dealer provides various benefits including financing options, legal protections, after sale convenience, genuine spare parts, vehicle
  warranty, and others.
• Moreover, EV batteries are collected from automobile dealers for efficient recycling and maintaining centralized collection.
• For instance, BMW offers electric vehicles in its product offerings. The company’s electric vehicles are sold by various dealers including Al Futtaim Motors, RMA Motors Dubai, ALBA cars, The Elite Cars, and others. These car dealers further collects the EV batteries for supplying it to recycling facilities.
• Thus, the rising sales of EVs from vehicle dealership channels are driving the electric vehicle battery recycling market size.

By Processes:

Based on the processes, the market is segmented into hydrometallurgical processes, pyrometallurgical processes, mechanical processes, and others

Trends in the Processes:

• There is an increasing trend towards adoption of hydrometallurgical process for improved efficiency in recycling of batteries.
• Increasing utilization of pyrometallurgical process due to various benefits including elimination of sorting and reduction of volume.

Hydrometallurgical processes segment accounted for the largest revenue in the total electric vehicle battery recycling market share in 2024.

• The hydrometallurgical process is widely used for recycling of EV batteries including lithium-ion batteries due to its enhanced efficiency in recovering crucial metals.
• Further, hydrometallurgical process is divided into three major steps including leaching, purification and separation, and recovery of the metal salts.
• Moreover, hydrometallurgical approach reduces the need for energy intensive methods and offers substantial benefits in terms of sustainability and purity.
• For instance, GEM Co., Ltd. offers recycling of electric vehicle battery in its product offering through hydrometallurgical process. Its hydrometallurgical process is effective in removing critical materials.
• Thus, the rising utilization of hydrometallurgical process for recycling batteries of electric vehicles are driving the electric vehicle battery recycling market trends.

Pyrometallurgical processes is anticipated to register the fastest CAGR during the forecast period.

• The pyrometallurgical process is often used for recycling electric vehicle batteries and it is particularly suitable for lithium-ion batteries.
• Further, pyrometallurgical process includes incineration, conflagrating, smelting in a plasma arc furnace, sintering, and melting at high temperatures
• For instance, ERAMET offers recycling of electric vehicle batteries through pyrometallurgy process. It offers various benefits such as improved processing and production.
• Thus, the rising utilization of pyrometallurgical process for recycling batteries of electric vehicles are driving the electric vehicle battery recycling market trends.

By Battery:

Based on the battery, the market is segmented into lithium-ion battery, nickel-metal hydride (NiMH) Battery, solid-state batteries, lead-acid batteries, and others.

Trends in the Battery:

• There is an increasing trend towards adoption of lithium-ion batteries in passenger vehicles.
• Increasing advancements in modern battery solutions such as solid-state batteries due to various benefits including improved heat management.

Lithium-ion battery segment accounted for a significant revenue share of 68.72% in the total market share in 2024.

• Lithium-ion batteries are widely used in electric vehicles including buses, cars, bikes, and others for storing and using energy.
• Further, lithium-ion batteries offer various advantages including high energy efficiency, long battery life, high power-to-weight ratio, good high- temperature performance, and others.
• For instance, in August 2024, the U. S. Department of Energy Ames National Laboratory developed a new lithium-ion battery recycling process with various advantages including low cost.
• According to the analysis, the rising advancements in recycling process for lithium-ion batteries is driving the electric vehicle battery recycling market.

Solid-state batteries are anticipated to register fastest CAGR during the forecast period.

• There is an increasing adoption of solid-state batteries due to various benefits including improved performance in extreme temperatures, faster recharging, higher energy density, and others.
• Further, solid state batteries eliminate the requirement for thermal management systems compared to traditional EV batteries.
• For instance, in October 2024, Stellantis collaborated with Factorial to develop solid-state battery technology for high-performing and affordable electric vehicles.
• According to the analysis, the rising advancements and investments of solid-state battery technology expected to boost the market during the forecast period.

By Vehicle Type:

Based on the vehicle type, the market is segmented into passenger vehicles, commercial vehicles, and electric bikes.

Trends in the Vehicle Type:

• Rising adoption of electric passenger cars due to availability of wide range of models, eco-friendliness, and prevalence of several government incentives.
• Increasing utilization of electric bikes due to reduced carbon emissions and lower operational costs.

Passenger vehicles segment accounted for the largest in the total market share in 2024.

• Passenger vehicle refer to multi-track vehicle with at least two axles, intended for the carriage of passengers and designed to seat maximum nine individuals including the driver.
• Factors including the rising disposable income, growing popularity of luxury cars, and progressions in autonomous driving systems are among the primary factors driving the passenger cars segment.
• For instance, according to the International Organization of Motor Vehicle Manufacturers, the global sales of passenger car reached up to 65.27 million in 2023, representing an increase of 11.3% from 58.64 million in 2022
• According to the analysis, the rising adoption of passenger vehicles are driving the electric vehicle battery recycling market.

Electric bikes are anticipated to register a substantial CAGR growth during the forecast period.

• Electric bike refers to a motorized bicycle with an integrated battery for supplying power and electric motor for propulsion.
• Further, electric bikes have various advantages including reduced carbon emissions and low operational costs.
• For instance, according to International Energy Agency, the total sales of electric two-wheelers reached 5.9 million in China and 0.9 million in India in 2023.
• According to the analysis, the rising adoption of electric bikes are projected to drive the market during the forecast period.