Li-ion Battery Recycling Market to Reach US$52B in Value by 2045

As suggested in their newly updated market report "Li-ion Battery Recycling Market 2025-2045: Markets, Forecasts, Technologies, and Players", IDTechEx forecasts the Li-ion battery (LIB) recycling market to grow to US$52B in value by 2045, given the increasing availability of retired Li-ion batteries over the coming decades. Key sources of feedstock will include electric vehicle (EV) batteries, and Li-ion batteries from energy storage systems (ESS), consumer electronics, alongside manufacturing scrap. LIB demand continues to grow significantly, especially across EV and ESS markets. Therefore, the management of these batteries at end-of-life (EOL) will become increasingly important.

 

 

Several opportunities exist from recycling LIBs. It can allow cell manufacturers to domesticate critical battery material supply and reduce reliance on importing materials from China and other overseas countries. This can also allow these manufacturers to shield themselves against supply bottlenecks and volatile raw material prices. Recycling can also be a profitable business venture for recyclers, as long as certain chemistries are chosen. LFP chemistries do not contain nickel or cobalt in the cathode and are thus less profitable to recycle. Ternary batteries, e.g., NMC and NCA, are instead more profitable to recycle. Policies and regulations in key regions will also be key drivers for LIB recycling market growth. For instance, in the EU, battery manufacturers and automotive OEMs will need to meet minimum recycled content targets of lithium, cobalt, and nickel in their new EV batteries. As shown in IDTechEx's market report, only certain scenarios will allow for these targets to be met region-wide, and they will be influenced by the source of recycled feedstock and the collection rate of these feedstocks.

 

 

IDTechEx has documented over 120 key announcements made by LIB recyclers over 2023 and 2024 regarding new recycling facilities, funding, and investments, as well as new strategic and supply agreements made with, e.g., automotive OEMs, cell suppliers, and collection and logistics players. This hyperactive market is being flooded with funding and investments, with recyclers accumulating over US$3.1B in 2023 and 2024 combined. This will be used to develop technologies as well as establish new commercial-scale recycling facilities. With some new facilities being commissioned in recent years, global LIB recycling capacity stood at ~879 kt EOL LIBs at the end of 2024.

 

The report from IDTechEx details activity by key player and by key region across recycling facilities and expansion roadmaps, funding and investments, partnerships, joint ventures (JV), memorandums of understanding (MOU), mergers and acquisitions (M&A).

 

 

 

LIB recycling technologies for cathode material and recovery are well established, including mechanical, hydrometallurgical, and pyrometallurgical techniques. Many Western recyclers are looking to expand their hydrometallurgical refining capacity to produce high-value battery-grade metal salts. These can be reintroduced into new battery manufacturing to create precursor cathode active material (pCAM). Ascend Elements, Cirba Solutions, and Fortum are several examples of players across North America and Europe who have established commercial-scale hydrometallurgical facilities in recent years.

 

While ternary batteries are more profitable to recycle with these traditional processes, LFP battery recycling economics are less promising, given the absence of nickel and cobalt in the cathode. However, direct recycling technologies being developed by several players could be a cheaper alternative. Despite this, several technical barriers must be overcome for this type of LIB recycling technology to become widely commercialized.

 

 

Battery manufacturers are also starting to recognize the importance of recycling and recovering other battery materials, such as graphite, which is typically used in LIB anodes. Its lower value compared to the cathode has contributed to its neglect in recycling. However, the increasing popularity of LFP, attempts for more localised supply chains, ongoing reliance on China for battery graphite supplies, and continued growth in graphite anode demand have all started to put focus on the recycling of graphite from LIBs. Several LIB recyclers, alongside several start-ups focused specifically on this, e.g., Green Graphite Technologies, are developing battery-grade graphite recycling technologies.

 

Another key component in LIBs is the binder. PVDF is the most used binder in LIB cathodes. However, it is a PFAS material since it is a fluoropolymer containing carbon-fluorine bonds. If PFAS is outlawed, this could have an impact on the use of PVDF as a binder in Li-ion batteries. This could impact EV and ESS markets significantly.

 

The report from IDTechEx provides thorough research on direct and graphite recycling technologies, key players and a graphite patent analysis, and further research on LIB binders, PFAS restrictions, PVDF alternatives, and binder recycling technologies strategies, and economics.

 

 

Recyclers, battery manufacturers, and automotive OEMs will be looking to benefit from LIB recycling in different ways. This will include a combination of securing critical battery material supply domestically, shielding oneself from volatile raw material prices, and generating revenues and potentially profits for recycling certain chemistries. As the availability of retired LIBs reaching EOL grows, so will the importance of managing them through the circular economy. Recycling plays the final role in this closed-loop supply chain, and recyclers are expanding their operations, growing their recycling capacities, and developing their technologies to help key stakeholders maximize long-term critical LIB material recovery.

 

In their new market report, "Li-ion Battery Recycling Market 2025-2045: Markets, Forecasts, Technologies, and Players", IDTechEx brings the reader a holistic overview of this market, including the following information:

 

 

 

 

 

 

 

 

To find out more about IDTechEx's "Li-ion Battery Recycling Market 2025-2045: Markets, Forecasts, Technologies, and Players", including downloadable sample pages, please see www.IDTechEx.com/LIRecycling.

 

For the full portfolio of energy storage and batteries market research available from IDTechEx, please visit www.IDTechEx.com/Research/ES.

IDTechEx provides trusted independent research on emerging technologies and their markets. Since 1999, we have been helping our clients to understand new technologies, their supply chains, market requirements, opportunities and forecasts. For more information, contact research@IDTechEx.com or visit www.IDTechEx.com.