Lithium-Ion Battery Recycling Market Report 2026

The lithium-ion battery recycling market size has grown rapidly in recent years. It will grow from $10.96 billion in 2025 to $12.92 billion in 2026 at a compound annual growth rate (CAGR) of 17.8%. The growth in the historic period can be attributed to increasing EV battery waste, growing demand for recovered metals, rising pressure for sustainable disposal, expansion of circular-economy initiatives, and increasing regulatory compliance needs.

The lithium-ion battery recycling market size is expected to see rapid growth in the next few years. It will grow to $24.6 billion in 2030 at a compound annual growth rate (CAGR) of 17.5%. The growth in the forecast period can be attributed to increasing global EV adoption, growing need for lithium and cobalt recovery, rising focus on closed-loop manufacturing, expansion of large-scale recycling facilities, and increasing government-supported recycling policies. Major trends in the forecast period include technology advancements in hydrometallurgy, automation-driven sorting innovations, high-efficiency extraction developments, battery-material purification research, and advanced pyrometallurgical process advancements.

The growing adoption of electric vehicles (EVs) is expected to drive the expansion of the lithium-ion battery recycling market in the coming years. Electric vehicles are cars that rely on one or more electric motors for movement, powered by rechargeable batteries instead of traditional internal combustion engines. The uptake of electric vehicles is rising due to falling battery costs, which refers to the decrease in the price of lithium-ion batteries over time thanks to technological innovations, economies of scale, and enhanced manufacturing processes, making EVs more affordable and accessible for consumers. Lithium-ion battery recycling addresses the management of end-of-life batteries from EVs by recovering valuable metals like lithium, cobalt, and nickel, which helps minimize environmental impact and preserve resources. For example, in 2024, according to the International Energy Agency (IEA), a France-based intergovernmental organization, electric car sales in 2023 were 3.5 million higher than in 2022, reflecting a 35% year-on-year increase. Hence, the rising adoption of electric vehicles is fueling the growth of the lithium-ion battery recycling market.

Major companies in the lithium-ion battery recycling industry are prioritizing the development of advanced solutions, such as direct-material recycling techniques, to enhance material recovery, minimize environmental impact, and boost cost-efficiency. Direct-material recycling techniques involve preserving the active battery materials in their original state during recycling, unlike traditional methods that deconstruct batteries into separate metals, allowing for higher reuse efficiency and reduced energy consumption. For example, in March 2024, 24M Technologies, a battery technology company headquartered in Massachusetts, introduced Liforever, an innovative direct-material recycling technique for semi-solid lithium-ion batteries. This process is designed to recover cathode and anode materials effectively while maintaining their structural integrity. Liforever accommodates multiple battery chemistries, including lithium iron phosphate (LFP) and nickel-rich types, and allows re-lithiation and reuse of active materials, decreasing waste and promoting sustainability.

In September 2023, Redwood Materials Inc, a US-based company specializing in lithium-ion battery recycling and materials recovery services, acquired Redux Recycling GmbH for an undisclosed sum. With this acquisition, Redwood Materials intends to increase its recycling capacity in Europe, enhance its footprint in the lithium-ion battery recycling sector, and incorporate Redux Recycling’s technical expertise in extracting essential battery materials such as lithium, cobalt, nickel, and manganese. Redux Recycling GmbH, based in Germany, offers lithium-ion battery recycling services, including mechanical separation and processing of black mass from end-of-life batteries.

Major companies operating in the lithium-ion battery recycling market are Glencore plc, BASF SE, Contemporary Amperex Technology Recycling Co. Ltd., Umicore SA, Sumitomo Metal Mining Co. Ltd., Zhejiang Huayou Cobalt Co. Ltd., EcoPro CNG Co. Ltd., Northvolt AB, Toho Zinc Co. Ltd., Redwood Materials Inc., Ascend Elements Inc., Lohum Cleantech Pvt. Ltd., Attero Recycling Pvt. Ltd., ACCUREC Recycling GmbH, Neometals Ltd., American Battery Technology Company, SungEel HiTech Co. Ltd., Redux Recycling GmbH, SNAM S.p.A., Brunp Recycling Technology Co. Ltd., JX Nippon Mining & Metals Corporation, Duesenfeld GmbH, GEM Co. Ltd., Primobius GmbH, TES Sustainable Battery Solutions.

North America was the largest region in the lithium-ion battery recycling market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the lithium-ion battery recycling market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the lithium-ion battery recycling market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are impacting the lithium-ion battery recycling market by increasing costs of imported shredding systems, chemical reagents, separation equipment, and advanced processing machinery used in hydrometallurgical and direct recycling operations. north america and europe are most affected due to reliance on specialized imported equipment, while asia-pacific faces cost pressures on cross-border battery waste flows. these tariffs are increasing capital expenditure and slowing capacity expansion in early-stage recycling facilities. however, they are also encouraging domestic recycling infrastructure development, localized equipment manufacturing, and regional battery material supply chain resilience.

Lithium-ion battery recycling involves gathering, disassembling, and treating used lithium-ion batteries to extract valuable components like lithium, cobalt, nickel, and manganese. The aim is to minimize environmental harm, preserve essential raw materials, and promote a sustainable battery supply chain by reintegrating the recovered materials into the manufacture of new batteries.

The primary battery chemistries in lithium-ion battery recycling include lithium-nickel manganese cobalt, lithium-iron phosphate, lithium-manganese oxide, lithium-nickel cobalt aluminum oxide, and others. Lithium-nickel manganese cobalt is common in EVs and storage systems due to high energy density and long life. Battery sources include consumer electronics, EVs, storage systems, power tools, and industrial equipment. Recovered materials include base metals, graphite, lithium, cobalt, and nickel. Recycling methods include hydrometallurgical, pyrometallurgical, and direct recycling, serving OEMs, battery makers, recyclers, metal/chemical producers, storage providers, and others.

The lithium-ion battery recycling market includes revenues earned by providing services such as battery collection and transportation, battery dismantling and discharging, mechanical and chemical recycling processing, recovery and refining of valuable metals, and safe disposal and environmental compliance services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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