Market Trends of Battery Recycling Industry
Lithium-ion Battery Expected to Witness Significant Growth
- Lithium-ion battery technology has recently been popular, particularly in the automotive (EVs) and renewable power industries. The plummeted prices and favorable chemistry steered the technology demand. The lifetime of a lithium battery is approximately three to four years, after which the battery users can provide it for recycling and get a new one in place of it.
- According to the new edition of the IEA's annual Global Electric Vehicle Outlook, more than 10 million electric cars (BEV and PHEV) were to be sold worldwide in 2022, and sales were expected to grow by another 35% this year to reach 14 million. This major growth means electric cars' share of the overall car market rose from around 4% in 2020 to 14% in 2022 and was set to increase further to 18% this year, based on the latest IEA projections. Such growth is likely to give an impetus to the battery recycling market in the near future through used-up Li-ion batteries.
- In June 2023, the U.S. Department of Energy's Advanced Materials and Manufacturing Technologie (AMMTO) announced USD 2 million for the rejuvenation, recycling, and reuse of Lithium-ion battery programs administered through the ReCell Center located at Argonne National Laboratory (ANL).
- Moreover, in December 2023, India's leading battery recycling firm, Lohum Cleantech Pvt. Ltd. (Lohum), signed an agreement with the Ministry of Energy & Infrastructure, UAE, and the Middle East’s sustainability and smart solutions provider, BEEAH, to build the UAE's first EV battery recycling plant. As part of the joint development agreement, Lohum will likely set up an 80,000 sq. ft refurbishing and recycling lithium batteries facility, which is expected to annually recycle 3000 tons of lithium-ion batteries and repurpose 15MWh battery capacity into sustainable energy storage systems (ESS) per annum.
- In addition, major market players such as Umicore, Glencore PLC, Cirba Solutions, Raw Materials Company Inc. (RMC), and RecycLiCo Battery Materials Inc. are implementing various technological advancements in the recycling processes to reduce costs and increase efficiency, which, in turn, is expected to increase the recycling of batteries in future.
- Therefore, due to the abovementioned factors, government efforts to increase battery recycling activities and lithium-ion battery consumption for electric vehicles and energy storage systems are expected to drive the global lithium-ion battery recycling market during the forecast period.
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Europe Expected to Witness Faster Growth
- The battery recycling industry has recently witnessed continuous growth in the European region due to the blooming start-ups in the field. Other big drivers for battery recycling are the growing electric vehicle market and energy storage projects in the region.
- According to ACEA (European Automobile Manufacturers' Association), Battery electric vehicles (BEVs) broke records in 2022, taking 12.1 percent of the total market share, compared to 9.1 percent in 2021, or 1.9 percent in 2019. Such growth in the market share is likely to boost the battery recycling market in the near future in Europe.
- According to the Statistical Review of World Energy Data, in the European region, electricity generation reduced by 3.5% in 2022 as compared to 2021 due to the maintenance of several solar and wind channels across the region. The majority of electricity generation comes from renewable sources of energy. The difference between generations and consumption is increasing every year, and this is likely to increase the demand for battery recycling during the forecast period.
- The Lithium-ion battery recycling market in France is experiencing significant growth due to several factors. One of the primary drivers of growth is the country's strong focus on sustainable energy and transportation practices. For instance, in March 2023, Li-Cycle announced its plans to build a 10,000 mt/year lithium-ion battery recycling facility in Harnes, France. The facility is expected to be completed by 2024 and will boost capacity up to 25,000 mt/year in the following years.
- Similarly, in March 2023, Altilium Metals announced plans to accelerate the development of the country’s largest Lithium-ion recycling plant, with a capacity of nearly 30,000 tonnes per year. The battery storage capacity in the United Kingdom was 2.3 GW as of 2022. As a part of the national battery storage target, about 20 GW of power will be installed by 2030. This signifies an opportunity for various public and private developers to invest in battery energy storage projects.
- For instance, Spain has set a target of portable battery collection for recycling to 45% in 2023, 63% in 2027, and 73% in 2030, and for batteries from light means of transport, the target is set at 51% in 2028 and 61% in 2031. An increase in battery collection is a necessary step for the proper recycling of batteries.
- As the energy storage market continues to grow in Europe, there will be a significant impact on the battery recycling market. With more and more households and businesses investing in energy storage solutions to store excess solar energy or to use during peak hours, the demand for batteries will increase, leading to an increase in the volume of batteries that need to be recycled.
- Owing to such developments, Europe is expected to witness significant growth in the coming years.
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