Published Date : 31 May 2023
The global electric vehicle battery recycling market size surpassed USD 2.11 billion in 2022 and is predicted to attain around USD 19.3 billion by 2030, growing at a CAGR of 31.87% throughout the projection period 2022 to 2030.
Batteries serve as a supplementary backup power source for all the automobiles. Electric vehicle batteries are the batteries which are mostly used to power the system of a battery electric vehicle. These batteries are usually small and lightweight, which is helpful to decrease the weight of the vehicle and hence recover performance. In contrast, recycling is known as the process for converting waste resources into new materials. Battery recycling is a type of recycling that tries to reduce the number of batteries that are discarded as municipal waste. It also contains a variety of hazardous substances and heavy metals, and dumping of them in the similar manner as compared with regular household rubbish has raised concerns about the pollution of water.
The global electric vehicle battery market has suffered as a result of production line shutdowns triggered by the COVID-19 pandemic. The market for electric cars shrank during the pandemic due to significant travel and transportation restrictions, as well as the shutdown of retailers and enterprises. Because of the lockout and travel restrictions, workers were barred from working at recycling factories. Due to a lack of personnel, large businesses were forced to close, and all workers were compelled to return to their home nations as a result of COVID. Customer spending decreases and economic uncertainty are expected to weigh on market growth. As a result, Covid-19 has a negative impact on the electric vehicle battery recycling industry.
North America is expected to account for a major market share of the global electric vehicle battery recycling market. Due to the increase of investment in R&D and solution adoption in the region, Asia-Pacific region is expected to grow at a faster rate throughout the forecasted period.
The increasing number of electric vehicle battery recycling market participants across geographies is likely to propel market expansion even more. Furthermore, leading suppliers' growing expenditures in product capabilities and company growth are likely to fuel the market throughout the research period. Many market participants are discovering attractive prospects in growing economies such as China and India, where enormous populations are combined with innovative developments in a variety of industries.
Electric Vehicle Battery Recycling Market Report Scope:
|Market Revenue in 2023
|USD 2.78 Billion
|Projected Forecast Revenue in 2030
|USD 19.3 Billion
|Growth Rate from 2022 to 2030
|CAGR of 31.87%
|2022 To 2030
|North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa
The growing concern in the world regarding the harmful effects of change in climate, along with worrisome levels of pollution in majority of the big cities, has produced a substantial demand for electric cars. As the price of gasoline and diesel has risen, so has the need for fuel-efficient automobiles. This also results in the depletion of fossil fuel and an increase in the inclination of firms to maximise profits from these oil reserves.
As a result of these reasons, there is a greater requirement for more fuel-efficient technologies, which leads to an increase in demand for electric cars for travel, which generates demand for batteries. When these batteries have served their purpose, they are recycled. The total number of batteries retired from electric buses and cars is estimated to be about units of 55,000 in 2018 and recycled. As a result, the growing demand for electric vehicles propels the growth of the electric vehicle battery recycling market.
After studying the future demand for recycled raw materials such as lithium, nickel, cobalt, and others, several firms are working on practical strategies to recycle lithium-ion batteries in an optimum manner. For example, Kemetco is collaborating with Manganese of America to create a scalable and commercialised recycling method for lithium-ion batteries that is both low-cost and environmentally beneficial. Furthermore, the recycled lithium is estimated to meet 9% of worldwide demand for lithium in diverse applications. More than 66% of wasted Electric vehicle batteries are expected to be recycled in the republic of China, where they will be utilised to support the country's rapidly expanding battery material sector.
The higher cost of building an electric vehicle battery recycling facility may restrain market expansion throughout the forecast period. The EVB recycling plant has high costs, including the cost of transaction and collection, which could stymie the widespread development of second-life battery repurposing due to the challenging procedures involved in the extraction of materials like batteries as well as uncertainty about the long life, safety, and quality of batteries which are sent for refurbishment. Furthermore, the development of the electric vehicle battery recycling sector is anticipated to be hampered by a lack of awareness about the practise.
As electric vehicle sales expand, so does the demand for quantity of EV batteries that require adequate management. This, together with the thriving automobile industry, is one of the primary factors positively driving the market. Additionally, industry leaders in the electrical vehicle battery recycling market are developing novel recycling processes, such as cathode-to-cathode or direct recycling, to recover minerals, chemicals, metals, and chemical powders appropriate for direct sales to battery makers. This process is different from the existing practise of directing metal-laden materials to smelters for refining and extracting other cathode materials as distinct metals. Aside from that, governments in a number of developing nations are boosting their spending on direct purchase incentives and tax breaks for electric vehicles. They are also launching the electric vehicles initiative which aims to accelerate the global adoption of EVs. Furthermore, various global organisations have begun campaigns to assist the market for buses, trucks, electric passenger vehicles, and light commercial vans. This, together with the depletion of non-renewable metal supplies, is aiding market expansion.
The higher cost of building an electric vehicle battery recycling facility will restrain the market growth during the forecast period. The EVB recycling plant has high costs, including the cost of transaction and collection, which could stymie the widespread development of second-life battery repurposing due to the challenging procedures involved in the extraction of materials like batteries as well as uncertainty about the long life, safety, and quality of batteries which are sent for refurbishment. Furthermore, the development of the electric vehicle battery recycling sector is anticipated to be hampered by a lack of awareness about the practice.
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