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) sold worldwide in 2022, and sales are expected to grow by another 35% this year to reach 14 million. This major growth means electric cars’ share of the overall car market has risen from around 4% in 2020 to 14% in 2022 and is 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).
- In March 2023, Li-Cycle Holdings Group signed an agreement for a global lithium-ion battery recycling partnership with the KION Group; the Company announced plans to develop a new lithium-ion battery recycling facility in France, underpinned by regional commercial demand, including KION’s lithium-ion battery recycling needs.
- Such developments are expected to boost the battery recycling market at the global level.
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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 battery recycling field. The other big drivers for battery recycling are the growing electric vehicles 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.
- In May 2023, Li-cycle Holdings Group and Glencore International signed a Letter of Intent to jointly study the feasibility of and, later, develop a Hub facility in Portovesme, Italy which will produce critical battery materials, including nickel, cobalt, and lithium from recycled battery content.
- In April 2023, Fortum Battery Recycling started commercial operations at its state-of-the-art hydrometallurgical battery material recycling facility in Harjavalta, Finland. The newly established facility is the largest recycling plant in Europe in terms of recycling capacity, and it is also the first commercial-scale facility in Europe for hydrometallurgical recycling.
- Owing to such developments, Europe is expected to witness significant growth in the coming years.
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