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The transportation battery recycling market size is forecast to increase by USD 24.55 billion, at a CAGR of 18.8% between 2023 and 2028. The market is experiencing significant growth due to increasing investment in the sector and the launch of new recycling facilities. Cobalt recovery, a critical component of battery chemistry, is a major focus in this market as it is a finite resource and its extraction is energy-intensive. Resource conservation and efficiency are essential trends in the transportation battery recycling industry, as the energy intensity of battery production is high. Supercritical CO2 and mechanical steps are being employed to improve the efficiency of cobalt recovery. Moreover, the recycling process must maintain electronic conductivity to ensure the quality of the recycled materials. Heavy metals, such as lithium and nickel, are also targeted for recovery. However, logistical challenges in disposing of battery waste remain a significant hurdle in the market's growth. Despite these challenges, the market is poised for growth as the demand for sustainable and eco-friendly solutions continues to increase.
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The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The mechanical processing segment is estimated to witness significant growth during the forecast period. The transportation battery recycling industry relies heavily on mechanical processing to efficiently recycle lithium-ion batteries from electric vehicles (EVs). This method is crucial for both economic gain and environmental sustainability. In August 2024, researchers at the University of Graz in Austria introduced a compact system designed specifically for recycling lithium-ion batteries from EVs. This innovative system employs a mechanical process, which consists of two primary stages.
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The mechanical processing segment was valued at USD 4.43 billion in 2018. The initial stage involves a machine that securely shreds the batteries, reducing them into manageable components. Subsequently, a mechanical separation phase ensues, where various materials are sorted using physical methods. This approach ensures the recovery of valuable metals, such as lead, cadmium, and mercury, while minimizing the ecological impact. By employing renewable electricity and adhering to ecosystems' health and human health guidelines, this recycling method aligns with the global shift towards sustainable practices. The initial stage involves a machine that securely shreds the batteries, reducing them into manageable components. Subsequently, a mechanical separation phase ensues, where various materials are sorted using physical methods. This approach ensures the recovery of valuable metals, such as lead, cadmium, and mercury, while minimizing the ecological impact. By employing renewable electricity and adhering to ecosystems' health and human health guidelines, this recycling method aligns with the global shift towards sustainable practices.
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APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The APAC region is a significant contributor to the market, with a strong emphasis on sustainability and a growing network of recycling facilities. The region's commitment to establishing a stable supply of raw materials for electric vehicle (EV) batteries and fostering a sustainable end-of-life battery collection and recycling system is evident in recent developments. Health and safety, working conditions, and robotic automation are essential considerations in the transportation battery recycling industry. Recycling facilities must adhere to stringent regulations to ensure the safety of workers and the environment. Robotic automation plays a crucial role in improving efficiency and reducing human intervention, ultimately contributing to cost savings and a more sustainable recycling process. Governments and industry players in the APAC region are implementing take-back schemes to encourage consumers to return their used batteries for recycling. These initiatives not only promote sustainability but also create economic opportunities for local communities and businesses. In conclusion, the APAC region's market is poised for growth, driven by strategic partnerships, a focus on sustainability, and a commitment to creating a circular economy for EV batteries.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Call2Recycle Inc. - The company offers transportation battery recycling, which protects against fires caused by discarded batteries.
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Market structure |
Fragmented |
YoY growth 2023-2024 |
17.2 |
The market is gaining significant traction as the world shifts towards sustainable industries and green energy. Rechargeable batteries, a crucial component of electric vehicles (EVs) and renewable energy storage systems, have become an integral part of our daily lives. However, the disposal of these batteries at the end of their life cycles poses a challenge due to the presence of valuable materials and potential environmental hazards. The production and disposal of batteries contribute to greenhouse gas emissions and environmental pollution. Rechargeable batteries, particularly those used in electric vehicles, contain valuable metals like nickel, lithium, cobalt, and lead. The extraction and processing of these metals have significant energy intensity and resource consumption, leading to substantial carbon dioxide emissions. Moreover, the improper disposal of batteries can result in contamination of soil and water sources.
Battery life cycles can be categorized into three stages, primary use, secondary use, and recycling. Recycling is an essential step in the battery life cycle, as it allows for the recovery of valuable materials and minimizes the environmental impact. Two primary recycling methods are direct recycling and pyrometallurgical recycling. Direct recycling involves the mechanical steps to recover materials directly from spent batteries without melting them. This method is suitable for batteries with low heavy metal content and high electronic conductivity, such as nickel-cadmium and nickel-metal hydride batteries. Pyrometallurgical recycling, also known as smelting, involves melting the batteries in high-temperature furnaces to separate valuable metals. This method is commonly used for lithium-ion batteries due to their high energy density and the presence of valuable metals like nickel, cobalt, and lithium. Despite the benefits of battery recycling, there are challenges that need to be addressed. Energy consumption is a significant concern, as the recycling process requires substantial energy inputs. Contamination is another challenge, as batteries may contain hazardous materials that can pose risks during the recycling process.
However, the market offers numerous opportunities for innovation and resource conservation. Developing more energy-efficient recycling methods and reducing contamination risks can lead to a more sustainable and environmentally friendly battery industry. Furthermore, the recovery of valuable materials like nickel, lithium, and cobalt can contribute to the circular economy and reduce the demand for primary raw materials. Battery manufacturing and disposal are closely interconnected, as the recycling process begins with the collection and sorting of spent batteries. Proper disposal channels and incentives for recycling can encourage the collection of spent batteries and ensure that they are recycled efficiently. Additionally, the development of closed-loop battery systems, where batteries are designed for easy disassembly and recycling, can further streamline the recycling process and reduce the environmental impact. In conclusion, the market plays a crucial role in reducing carbon footprint, minimizing environmental pollution, and conserving valuable resources. By addressing challenges and innovating recycling methods, the industry can contribute to a more sustainable and circular economy for rechargeable batteries Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing investment in the transportation battery recycling sector is notably driving market growth. The market is experiencing substantial growth, fueled by increasing investments and technological advancements. This scaling-up will occur at an established brownfield industrial facility in Germany.
This investment underscores the importance of reducing carbon dioxide emissions and minimizing greenhouse gases by addressing environmental pollution from spent batteries. Nickel and lithium, key components of transportation batteries, are valuable resources that can be recycled through various methods, including direct recycling and pyrometallurgical recycling. By extending battery life cycles through recycling, the industry can mitigate the need for raw material extraction and contribute to a more sustainable future. Thus, such factors are driving the growth of the market during the forecast period.
The launch of new battery recycling facilities is the key trend in the market. The market is experiencing significant growth, with the establishment of new facilities playing a pivotal role. This facility comprises two primary processing lines, each capable of recycling 10,000 tonnes of lithium-ion battery material yearly. An additional 10,000 tonnes of ancillary capacity is planned, increasing the total capacity to 30,000 tonnes per annum.
This large-scale facility, which is among the biggest in Europe, underscores the industry's determination to expand battery recycling capabilities. The efficient recovery of cobalt and other heavy metals from battery materials through advanced processes like supercritical CO2 and mechanical steps is crucial for resource conservation and reducing energy intensity. The increased electronic conductivity of these recycled materials is vital for maintaining battery chemistry's performance standards. Thus, such trends will shape the growth of the market during the forecast period.
Logistical challenges in disposing of battery waste is the major challenge that affects the growth of the market.
The Need for Awareness and Infrastructure The market is confronted with substantial logistical hurdles in managing the disposal of spent batteries. Traditional disposal methods, such as landfilling and incineration, continue to be the preferred options due to limited awareness regarding the advantages of battery recycling through reverse logistics. Reverse logistics refers to the process of transporting utilized batteries from the point of consumption back to recycling facilities. However, many consumers and businesses remain oblivious to this eco-friendly solution. A pressing concern intensifying this challenge is the scarcity of recycling infrastructure to cater to the escalating demand for battery recycling. The existing infrastructure falls short, resulting in a considerable amount of spent batteries being deposited in landfills, where they can take centuries to decompose.
This not only contributes to energy consumption but also poses potential contamination risks. The adoption of green energy and the proliferation of rechargeable batteries in various industries necessitate a sustainable approach to battery manufacturing and disposal. Materials recovery from spent batteries is crucial to reduce the environmental impact and promote a circular economy. To address these challenges, increasing awareness and investing in advanced recycling technologies can pave the way for a more sustainable future in the market. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
The market is gaining significant traction due to the increasing environmental concerns and the need for resource conservation. Rechargeable batteries, particularly lithium-ion batteries (LIBs) used in electric vehicles (EVs), are a major contributor to environmental pollution and greenhouse gas emissions. Battery life cycles are crucial in reducing the environmental impact. Recycling methods such as direct recycling and pyrometallurgical recycling are being adopted to recover valuable materials like nickel, cobalt, lithium, and other heavy metals from end-of-life batteries. Pyrometallurgical recycling involves high energy consumption and contamination risks, while hydrometallurgical processes are more energy-efficient and environmentally friendly. The recycling industry is striving to minimize the energy intensity and improve the efficiency of the recycling processes. Sustainable industries are focusing on green energy and renewable electricity to power recycling facilities. The recycling rate of batteries is a critical factor in reducing the environmental damage caused by mining and extraction of raw materials.
The battery chemistry, including materials like lead, cadmium, mercury, and other heavy metals, poses health and safety risks during battery disposal. Recycling facilities are implementing stringent health and safety measures and investing in robotic automation to minimize these risks. The recycling market is also focusing on reuse and minimizing the amount of batteries that end up in landfills. Precious metals like cobalt and lithium are in high demand, making battery recycling an essential part of the circular economy. The market is essential in reducing carbon dioxide emissions, minimizing the environmental impact, and preserving resources for future generations. The market is expected to grow significantly due to the increasing demand for sustainable industries, green energy, and the need to address climate change.
Market Scope |
|
Report Coverage |
Details |
Page number |
214 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.8% |
Market Growth 2024-2028 |
USD 24.55 billion |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 43% |
Key countries |
China, US, Japan, Germany, UK, South Korea, India, Canada, France, and Brazil |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Call2Recycle Inc., Battery Solutions LLC, Contemporary Amperex Technology Co. Ltd., Ecobat LLC, EnerSys, Exide Industries Ltd., Fortum Oyj, GEM Co. Ltd., Gopher Resource LLC, Li Cycle Holdings Corp., Lohum Cleantech Pvt. Ltd., Mitsui and Co. Ltd., Neometals Ltd., Novocycle Technologies, POSCO holdings Inc., Primobius GmbH, Stellantis NV, SungEel Hi Tech Co. Ltd., Toyota Motor Corp., and Umicore SA |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, AI impact on market trends, COVID -19 impact and recovery analysis and future consumer dynamics, market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Method
9 Market Segmentation by Type
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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