Research from global market intelligence firm Interact Analysis reveals that the li-ion battery recycling market capacity reached 1.7 million tons worldwide in 2023 and is expected to increase to 11 million tons by 2029. The company’s latest market report forecasts rapid growth between 2025 and 2029. This follows on from a challenging year in 2023 due to a collapse in battery material prices and the subsequent cancellation of many battery recycling projects.
APAC dominates the battery recycling equipment market
In 2023, the global battery recycling equipment market was worth almost $1.7 billion and is expected to reach $4.5 billion by 2029. Interact Analysis predicts a compound annual growth rate (CAGR) of 24.5% between 2024 and 2029. The APAC region is both the largest market for li-ion battery production and the primary source of revenue for the recycling equipment market, accounting for over 80% of global market share of the latter in 2023. Between 2025 and 2029 the battery recycling equipment market share in EMEA and APAC will increase, while in the Americas it is expected to decline.
A range of factors driving the market
A variety of different factors are driving the battery recycling market, one of which is the expansion of the electric vehicle market. This has led to an increased number of retired li-ion batteries. Additionally, expansion of li-ion battery production capacity has led to an increase in the number of scrap batteries and materials generated during the production process. Finally, growing environmental concerns have caused many governments to introduce policies related to battery recycling to promote market development. For example, EU governing bodies have set targets for material recovery and recycling efficiency improvements by 2027 and 2025 respectively, while in the US the Inflation Reduction Act provides up to $7,500 in consumer tax credits for electric vehicles as long as a certain percentage of the battery components are manufactured, assembled, sourced and recycled in North America.
Commenting on the li-ion battery recycling market, Maya Xiao, Research Manager at Interact Analysis, says, “The li-ion battery recycling market report is a new one for Interact Analysis and it is certainly an exciting market to study. The market is poised for significant growth over the next five years, with an expected CAGR of 37.7% and capacity expected to reach 11.4 million tons by 2029”.
