Lithium Ion Battery Recycling Market Size, Share & COVID-19 Impact Analysis, By Chemistry (Lithium Cobalt Oxide, Lithium Iron Phosphate, Lithium Manganese Oxide, Lithium Nickel Cobalt Aluminum Oxide, and Lithium Nickel Manganese Cobalt Oxide), By Source (Electronics, Electric Vehicles, Power Tools, and Others), By Process (Physical/Mechanical, Hydrometallurgical, and Pyrometallurgical), and Regional Forecast, 2021-2028

The global lithium-ion battery recycling market size was valued at USD 1.70 billion in 2020 and is projected to grow from USD 2.00 billion in 2021 to USD 6.55 billion by 2028, growing at a CAGR of 18.5% during the forecast period. Based on our analysis, the global market exhibited a substantial growth of 11.5% in 2020. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over. The global impact of COVID-19 has been unprecedented and staggering, with Lithium-ion battery recycling witnessing a rising demand shock across all regions amid the pandemic.

A Lithium-Ion Battery is a type of electrochemical cell that is made up of components such as electrodes and catalysts to support power generation for various applications. Materials present in the cathode and anode tubes consist of various precious metals with limited reserves and high resale values. Consequently, the recycling process of li-ion batteries is utilized to extract and market the raw materials accumulated in the electrode composition to lower the overall project cost and reduce the environmental impact.

Disruptions in Supply and Shipment Channels Caused by COVID-19 Hampered the Global Lithium Ion Battery Recycling Industry

The novel coronavirus or COVID-19 infection has put a significant delay in operations across different industries. The pandemic has plummeted numerous verticals into the girth of declining revenue and demand, affecting the financial health of organizations. Additionally, different administrations have rolled out policies such as national lockdown and social distancing to counter the spread of the viral disease harming industrial procedures.

Furthermore, countries with no required recycling infrastructure tend to supply exhausted batteries to different regions for treatment. Consequently, limitations in cross-border trades to mitigate possibilities of the virus reaching low affected countries is likely to be one of the key reasons adversely impacting the industry supply chain network. For instance, in April 2020, the World Trade Organization (WTO) projected that global trade was likely to decline between 13% to 32% in 2020 due to uncertainties caused by the pandemic across different regions.

LATEST TRENDS

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Stringent Policies for Untreated Chemical Waste Disposal is a Vital Trend

Accumulators and batteries play a substantial role in providing a reliable power source to safeguard daily operations in a wide range of applications. Various governments and organizations across the globe have introduced stringent norms and standards to treat the materials present in battery chemistry. It is likely to augment the global market of Lithium Ion Battery Recycling. For instance, the European Union follows the Directive 2006/66/EC of the European Parliament to mandate the accumulators and batteries and their waste treatment. The framework also aims at reducing environmental pollution by effectively collecting and recycling waste batteries at high rates.

Increasing Efforts to Commercialize Battery Recycling with New Infrastructure to Play a Pivotal Role in Shaping the Industry

The industry has observed significant expansion strategies by various public and private players to enhance their recycling capacities to propel the industry landscape. The setup of a new recycling infrastructure is expected to augment significantly the rate of commercialization for various recycling processes. It would generate high technology demand over the upcoming decades. For example, in December 2020, a Canadian li-ion battery recycling company called Li-Cycle announced the inauguration of its new recycling plant in Rochester, New York. The new facility is designed to process 10,000 tonnes a year through a two-step procedure of hydrometallurgy and wet chemistry method to retrieve about 95% of materials.

DRIVING FACTORS

Favorable Government Initiatives to Boost Adoption of Low-carbon Technologies will Aid Growth

A positive inclination towards the deployment of clean power sources to provide efficient input to different applications is likely to accelerate the global Lithium Ion Battery Recycling market growth. Organizations have significantly shown an increase in favoring the installation of numerous batteries for various large-scale energy storage and electric vehicles. The increasing deployment is set to drive the replacement of long-standing batteries with low efficiencies generating wastes for recycling opportunities. For example, in March 2021, the Government of Delhi, India, inaugurated a new grid-scale 150 kWh / 528 kWh lithium-ion battery storage system in the capital. The administration aims to expand the sustainable energy base in the country and serve to boost the resiliency of the power grid.

Rising Adoption of Battery Powered Electric Vehicles to Unlock New Potentials for the Industry

Various emerging and developed economies have observed a paradigm shift towards a low-carbon generation transportation fleet to reduce the carbon footprint, aiding the industry pace. The adoption of different types of electric vehicles such as Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs), and Plug-in Hybrid Electric Vehicles (PHEVs) over the years has resulted in large quantities of batteries reaching their end-of-life. For instance, in December 2020, the government of Japan presented its plans to decarbonize its automobile industry and prohibit the sales of gasoline-only cars by 2030.

RESTRAINING FACTORS

High Initial Investment and Lack of Stern Policies in Some Nations May Hinder Growth

The construction of new recycling facilities requires high capital expenditure and dedicated collection and supply chains limiting the market for Lithium Ion Battery Recycling. Additionally, the absence of a proper regulatory framework in various developing nations to extract battery materials, coupled with the increasing recycling of other chemistries such as lead-acid batteries, may pose a problem for the industry's growth.

SEGMENTATION

By Chemistry Analysis

Lithium Cobalt Oxide (LCO) Segment Projected to Account for the Major Share During the Forecast Period

Based on the chemistry, the industry can be majorly segmented into lithium cobalt oxide (LCO), Lithium Iron Phosphate (LFP), Lithium Manganese Oxide (LMO), Lithium Nickel Cobalt Aluminum Oxide (NCA), and Lithium Nickel Manganese Cobalt Oxide (NMC). The lithium cobalt oxide (LCO) segment is projected to lead the industry in terms of volume and revenue owing to the large installed base of these batteries. Besides, the significant presence of recoverable and expensive cobalt material would propel growth.

Additionally, the lithium NCA market segment is also set to observe a substantial increase owing to the presence of a large number of old electric vehicle batteries reaching near end-of-life periods. Furthermore, the growth of batteries such as lithium LMO and lithium NMC is backed by the bulk replacement of various consumer electronics and the availability of different electric vehicle batteries.

By Source Analysis

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Electric Vehicles Segment to Observe the Highest Growth Between 2021-2028

Based on the source, this market includes electronics, electric vehicles, power tools, and others. The recovery of batteries from electric vehicle sources is projected to observe a significant rise due to the abundant availability of different automobiles such as cars, buses, bikes, and many more. Besides, the electronics segment is also expected to hold a considerable share owing to various factors such as improved profitability in recycling, disassembling of large devices, and long-standing battery installation in products, among others.

By Recycling Process Analysis

Improved Operational Efficiency and Better Metal Recoverability to Propel the Hydrometallurgical Segment

Based on the recycling process, the industry is trifurcated into physical/mechanical, hydrometallurgical, and pyrometallurgical. The hydrometallurgical segment is set to hold a significant position in the global market owing to its environment-friendly operations, less complex procedure, and negligible water and gas emissions. Additionally, the pyrometallurgical segment is anticipated to observe considerable growth due to its economic extraction processes and the ability to treat a wide range of battery chemistries.

REGIONAL INSIGHTS

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The regional analysis across the market primarily includes three major territories, including North America, Asia Pacific, and Europe. The presence of a large number of recycling companies, availability of different battery manufacturers, large battery installed base, and favorable battery energy storage policies are some of the factors propelling the Asia Pacific market size. For instance, in January 2020, GS Engineering & Construction Corp., a South Korean civil engineering company, announced the construction of a new facility to recycle lithium-ion batteries at an investment of around KRW 100 billion or USD 86 million by 2022. The company declared that the new unit with a projected capacity of 4.5 kilotons was awarded by Pohang City and North Gyeongsang Province administrations to propel the industry outlook.

Additionally, North America's industry size is favored by the significant expansion plans by different key players to treat battery systems established over the years. The region is also backed by the encouraging investments and regulatory framework outlook by various administrations and organizations. For example, in February 2021, the Office of Energy Efficiency and Renewable Energy, the U.S. Department of Energy (DoE), and the National Renewable Energy Laboratory (NREL) presented the third and final phase of the Lithium Ion Battery Recycling Prize. NREL is set to be administrator of the competition prize worth USD 5.5 million, which targets to work in line with the DoE’s objective to obtain 90% of all consumed LIBs to recover crucial materials and return the new product to the supply chain.

Europe's market size is also projected to grow significantly over the forecast timeline. Various companies in the region are actively participating in the industry equipped with a combination of treatment technologies to treat different battery chemistries. Furthermore, European countries are favored by the large clean energy generation targets introduced by the European Union to curb the overall carbon footprint from various verticals. For instance, in December 2020, the European Commission unveiled its plans to expand industry players' battery recycling and collection targets. Apex Organization is likely to increase the portable battery collection and recycling objective from 45% to 65% by 2025 to ensure high recovery rates across the member states.

KEY INDUSTRY PLAYERS

Umicore is Concentrating to Fortify its Presence through Organic & Inorganic Expansion Strategies

The global Lithium Ion Battery Recycling market has observed various small and big players participating at various li-ion battery value chain stages. These companies are focusing on enhancing their recycling capacities and deploying environmentally friendly processes to improve their positions. Umicore is a Belgium-based energy company offering a wide range of products & services catering to battery & catalysts production, chemical treatments, battery recycling, and many more verticals.

For instance, in June 2021, Umicore announced to provide equity investment in a U.S.-based battery manufacturer called Solid Power to empower its product portfolio for electric passenger vehicles integrated with lithium-ion batteries. The company is focused on increasing its stronghold in battery recycling, primarily through integrating the supply chain synergies to expand its usage potential for recycled materials.

LIST OF KEY COMPANIES PROFILED:

• SNAM (France)


• Umicore (Belgium)


• Sumitomo Metal Mining Co., Ltd. (Japan)


• Lithion Recycling Inc. (Canada)


• BATREC INDUSTRIE AG (Switzerland)


• American Zinc Recycling Corp (U.S.)


• Fortum (Finland)


• DOWA ECO-SYSTEM Co., Ltd. (Japan)


• Li-Cycle Corp. (Canada)


• Neometals Ltd (Australia)


• ACCUREC Recycling GmbH (Germany)


• AkkuSer (Finland)


• San Lan Technologies Co., Ltd (China)


• Duesenfeld (Germany)


• Glencore (Switzerland)


• Redux GmbH (Germany)


• uRecycle Group (Finland)


• Retriev Technologies Inc. (Canada)

KEY INDUSTRY DEVELOPMENTS:

• July 2021 – Lohum Cleantech, a lithium-ion battery manufacturer and recycling solutions provider announced its plans to boost its production and recycling capacities. The company aims to expand the LIB output from 300 MWh to 1 GWh along with a ten-fold increase in recycling capabilities from 1,000 tonnes per annum (TPA) to 10,000 TPA over the next two years.


• June 2021 – Germany-based chemicals company, BASF declared to initiate construction of a new battery recycling prototype plant at the company’s cathode active materials (CAM) facility site in Schwarzheide, Germany. The company targets to utilize the advanced solution and extract cobalt, manganese, lithium, and nickel from lithium-ion batteries reaching the exhaustion period.

REPORT COVERAGE

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The global lithium ion battery recycling market research and business intelligence report offers an in-depth analysis of the market. It further provides details on the adoption of Lithium Ion Battery Recycling across several regions. Information on trends, market drivers, opportunities, threats, and restraints of the market can further help stakeholders to gain valuable insights into the key market. The report offers a detailed competitive landscape by presenting information on market players, along with their strategies, in the market.

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