Battery Scrap Market Size, Share, and Industry Analysis By Product Type (Lead Acid, Lithium Ion, and Others), By Source (Electric Vehicles, Consumer Electronics, Power Tools, and Others), and Regional Forecast, 2025-2032

The global battery scrap market is expanding as battery recycling can help the environment by cutting carbon emissions. Battery scrap refers to batteries that have reached the end of their usable life and are discarded. These batteries can come from various sources, including consumer electronics, electric vehicles, industrial applications, and others.

Battery scrap includes various types of batteries, such as lead-acid, nickel-cadmium (NiCd), nickel-metal-hydride (NiMH), and lithium-ion (Li-ion) batteries. Lead-acid and lithium batteries are commonly utilized in automotive and industrial applications.

• A report by the National Renewable Energy Laboratory (NREL) titled "Life Cycle Analysis of Electric Vehicle Batteries" discusses the environmental benefits of recycling lithium-ion batteries, including significant reductions in CO₂ emissions. The specific figure of saving ~6.7 tons of CO₂ emissions per ton of recycled lithium-ion battery scrap can be attributed to the lifecycle analysis models and comparisons with the production of new batteries from raw materials.

Battery Scrap Market Driver

Increasing Demand for Batteries, along with Favorable Government Regulations Regarding Battery Recycling, to Drive the Market

The increased demand for electric vehicles and renewable energy storage systems is significantly boosting the need for batteries. This, in turn, increases the volume of battery scrap generated and the need for effective recycling solutions​.

• In April 2024, The Technology Development Board (TDB) announced a collaboration with startup Remine India to build a commercial plant for e-waste and lithium-ion battery recycling in Uttarakhand. The agreement provides ~USD 908.30 million in financial assistance from TDB for the ~USD 1.82 million project.

Battery Scrap Market Restraint

Safety and Environmental Concerns May Hinder the Market Growth

Batteries, especially lithium-ion ones, contain hazardous materials that can pose significant environmental and safety risks if not handled properly. Inappropriate discarding can lead to water and soil contamination, and battery fires during transportation and storage are serious concerns.

• Lithium-ion batteries comprise metals such as nickel, cobalt, and lithium, which can leach into the soil and water if not discarded properly. A study by the U.S. Geological Survey highlighted the potential for these metals to contaminate groundwater, posing risks to human health and ecosystems.

Battery Scrap Market Opportunity

Innovations in Hydrometallurgical and Pyrometallurgical Processes to Propel Industry Expansion

Innovations in hydrometallurgical and pyrometallurgical processes are improving the efficiency and cost-effectiveness of battery recycling. Technologies such as direct recycling and hydro-to-cathode-active-material recycling are emerging, which promise higher recovery rates and reduced environmental impact​.

• Research from the Journal of Cleaner Production (2022) shows that hydro-to-cathode recycling methods can achieve up to 95% recovery rates for lithium, cobalt, and nickel, which are critical for battery production.

Segmentation

Key Insights

The report covers the following key insights:

• Recent Advancements in the Battery Scrap
• Key Industry Development (Mergers, Acquisitions, and Partnerships)
• Impact of COVID-19 on the Market 
• Key Industry Trends
• Regulatory Landscape for the Battery Scrap

Analysis by Product Type

Based on product type, the market is divided into lead acid, lithium ion, and others.

Lead-acid batteries are one of the oldest and majorly utilized types of batteries, primarily known for their application in automotive and industrial settings. These have an absorbed electrolyte in a fiberglass mat, making them spill-proof and maintenance-free.

Analysis by Source

On the basis of source, the market is subdivided into electric vehicles, consumer electronics, power tools, and others.

Lead-acid batteries have been used in early electric vehicles and hybrid vehicles. However, modern electric vehicles basically utilize lithium-ion batteries due to their higher energy density and efficiency. Lead-acid batteries are still used in certain applications such as low-speed electric vehicles (LSEVs) or golf carts. They may also be present in auxiliary functions, such as powering non-driving systems in electric vehicles.

National Renewable Energy Laboratory (NREL) publishes research on the types of batteries used in EVs and highlights the benefits of lithium-ion batteries over lead-acid batteries. They also provide data on the applications of lead-acid batteries in auxiliary systems of EVs.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America is home to advanced recycling technologies, including hydrometallurgical and pyrometallurgical processes, which improve recovery rates for valuable materials. Stringent regulations in the U.S. and Canada promote battery recycling to minimize environmental impact. Examples include the Battery Act (Battery Management and Recycling Act) and various state-level regulations.

• Pyrometallurgical processes involve high-temperature smelting to recover metals such as lead from battery scrap. These processes are efficient in recovering lead with a typical recovery rate of 98%.

The European Union has implemented strict regulations such as the Battery Directive (2006/66/EC), which mandates battery recycling and sets targets for recovery rates. Europe is a leader in developing and implementing cutting-edge recycling technologies, with a focus on sustainability and reducing carbon footprints.

• The European Battery Alliance (EBA), launched by the European Commission, targets to create a competitive and sustainable battery cell manufacturing value chain in Europe. This includes advancements in recycling technologies.

Countries such as China, Japan, and South Korea have implemented regulations to manage battery waste. China, for instance, has policies in place to promote battery recycling and the circular economy. The region is rapidly advancing in recycling technologies, particularly in China and Japan, where there is significant investment in R&D.

• China has implemented several policies and regulations to promote battery recycling and the circular economy. Key regulations include the "Regulation on the Management of Waste Electrical and Electronic Products" and the "Extended Producer Responsibility (EPR) system".

Key Players Covered

• Li-Cycle (Canada)
• Umicore (Belgium)
• HUSKY BATTERY SOLUTIONS (U.S.)
• ENGITEC TECHNOLOGIES SPA (Italy)
• Sunlight Group (Greece)
• Aqua Metals Inc. (U.S.)
• Ecobat (U.S.)
• EXIDE INDUSTRIES LTD. (India)
• Guangdong Brunp Recycling Technology Co., Ltd. (China)
• Gravita India Ltd. (India)

Key Industry Developments

• In July 2023, Nth Cycle, a recycling startup, established its first large-scale facility in Fairfield, Ohio. The facility focuses on producing a mixture of nickel and cobalt, essential for lithium-ion batteries used in electric vehicles and smartphones.
• In July 2023, EVE Energy Co. Ltd. and Li-Cycle Holdings Corp. announced a memorandum of understanding (MOU) to explore lithium-ion battery recycling options. This partnership aims to develop environmentally sound recycling solutions for battery materials sold in North America, Europe, and Asia.