U.S. Lithium-Ion Battery Recycling Market Size, Share & COVID-19 Impact Analysis, By Chemistry (Lithium Cobalt Oxide (LCO), Lithium Iron Phosphate (LFP), Lithium Manganese Oxide (LMO), Lithium Nickel Cobalt Aluminum Oxide (NCA), Lithium Nickel Manganese Cobalt Oxide (NMC)), By Source (Electronics, Electric Vehicles, Power Tools, and Others), By Recycling Process (Physical/Mechanical, Hydrometallurgical, and Pyrometallurgical), and Country Forecast, 2023-2030

The U.S. lithium-ion battery recycling market size was valued at USD 69.52 million in 2022 and is projected to grow at a CAGR of 19.11% during the forecast period.

Lithium-ion battery recycling is recovering valuable materials and components from used lithium-ion batteries to reuse in producing new or other products. Lithium-ion batteries contain valuable metals, such as lithium, cobalt, nickel, and other materials. Recycling helps conserve these finite resources and reduces the need for new mining and extraction. Improper disposal of lithium-ion batteries can lead to environmental pollution and hazardous waste. Recycling ensures the safety of batteries and proper management of potential harmful elements.

The impact of COVID-19 pandemic on the U.S. lithium-ion battery recycling market was mixed. The pandemic created challenges, such as disruptions in the supply chain and logistical issues. In some cases, battery recycling facilities and operations faced workforce-related challenges and temporary shutdowns. On the other hand, the pandemic highlighted the importance of sustainable practices and the need for a circular economy. This boosted interest in recycling lithium-ion batteries to reduce waste and environmental impact.

U.S. Lithium-Ion Battery Recycling Market Trends

Decarbonization in Energy Sectors to Boost Demand for Lithium-Ion Battery Recycling Services

The decarbonization efforts in various industries have significantly enhanced the demand for lithium-ion battery recycling procedures. The push for decarbonization and the transition to electric mobility has increased the adoption of Electric Vehicles (EVs). As the number of electric vehicles on the road increases, the volume of spent EV batteries for recycling also rises. This is driving the demand for lithium-ion battery recycling services and renewable energy sources, such as wind and solar power, to demand efficient energy storage solutions. Lithium-ion batteries are used in energy storage systems, making them crucial for balancing and storing renewable energy. As the renewable energy sector expands, so does the need for recycling end-of-life batteries from these systems.

U.S. Lithium-Ion Battery Recycling Market Growth Factors

Rising Adoption of Electric Vehicles to Propel Market Growth 

The adoption of electric vehicles is on the rise in the U.S., driven by several factors, including environmental concerns, government incentives, and advances in EV technology. This surge in EV demand significantly impacts the U.S. lithium-ion battery recycling market growth. As the demand for electric vehicles increases, so does the production of lithium-ion batteries. These batteries are a critical component of EVs, providing the energy storage necessary for long-range and high-performance electric cars.

According to the administration of Bilti electric estimates, there are about 3 million electric cars in the U.S., representing approximately 1% of the total number of cars on the road. In 2022 alone, companies manufactured around 442,000 electric vehicles, indicating a significant increase in automakers' production of electric cars.

RESTRAINING FACTORS

Lack of Adequate Recycling Infrastructure to Restrain Market Growth

Lithium-ion battery recycling requires specialized manufacturing equipment, including deposition chambers for thin film layers and other advanced processes. These machines can be expensive, increasing the initial capital outlay for companies entering the market or expanding production capacity. Developing and optimizing lithium-ion battery recycling technology involves substantial research and development costs. New materials, processes, and device architects often require extensive testing and validation, adding to the initial investment burden. Some materials used for recycling, such as amorphous silicon and transparent conductive oxides, can be more expensive compared to traditional solar cells, such as silicon wafers.

U.S. Lithium-Ion Battery Recycling Market Segmentation Analysis

By Chemistry Analysis

Based on chemistry, the market is segmented into lithium cobalt oxide (LCO), lithium iron phosphate (LFP), lithium manganese oxide (LMO), lithium nickel cobalt aluminum oxide (NCA), and lithium nickel manganese cobalt oxide (NMC).

The lithium cobalt oxide (LCO) segment is leading the market. Lithium cobalt oxide is a cathode material used in lithium-ion batteries widely used in various electronic devices and electric vehicles due to its higher energy density and performance.

Lithium nickel cobalt aluminum oxide is the second dominating segment in the market. Lithium-ion batteries are widely used in electric vehicles, and as the adoption of electric vehicles continues to increase, the demand for recycling of lithium-ion batteries also increases.

NCA (Nickel Cobalt Aluminum Oxide) is a common cathode material in batteries used in electric vehicles, and the growth in the electric vehicle market contributes to the increased presence of NCA in the recycling stream.

By Source Analysis

Based on source, the market is segmented into electronics, electric vehicles, power tools, and others.

The electronics segment is dominating the market. Electronic sources of lithium-ion batteries and their widespread use contribute to the growing e-waste stream. Portable computing devices often incorporate lithium-ion batteries, making them essential for recycling to recover valuable materials.

Electric vehicles play an important role in the growing demand for lithium-ion battery recycling. As electric vehicle popularity increases, so does the need for the sustainable management of lithium-ion batteries.

By Recycling Process Analysis

Based on recycling process, the market is segmented into physical/mechanical, hydrometallurgical, and pyrometallurgical.

The hydrometallurgical segment holds the largest U.S. lithium-ion battery recycling market share. The hydrometallurgical recycling process is a process that uses liquid-based techniques to extract valuable materials from various waste materials, such as electronic waste or spent industrial catalysts. Ongoing research and technological advancements in hydrometallurgical processes may contribute to the growth of this segment.

Innovations in extraction techniques and process optimization can make hydrometallurgical methods more competitive and attractive for lithium-ion battery recycling.

Mechanical recycling is one of the methods used for recycling lithium-ion batteries. The batteries are mechanically shredded or crushed during this process to break them into smaller components.

List of Key U.S. Lithium-Ion Battery Recycling Market Companies

The U.S. lithium-ion battery recycling market is highly competitive. Major players operating in the market compete with a wide range of companies and big facilities that manufacture lithium-ion battery recycling and related products. Many of these players are the largest lithium-ion battery recycling companies in the industry with longer operating histories, more significant financial, technical, other resources, and greater visibility.

In addition, the U.S. lithium-ion battery recycling market also includes various small key players with high competitiveness at regional or national levels, resulting in their ability to process emerging or new technologies and change customer demands quickly.

Other companies with a considerable presence in the U.S. market include Battery Recyclers of America, Worley, Retriev Technologies, American Zinc Recycling, Eco-Bat Technologies, TES, Redwood Materials, Inc., REDUX Recycling GmbH, Raw Materials Company Inc., and Neometals Ltd.

LIST OF KEY COMPANIES PROFILED:

• Battery Recyclers of America (U.S.)


• Worley (U.S.)


• Retriev Technologies (Canada)


• American Zinc Recycling (U.S.)


• Eco-Bat Technologies (U.S.)


• TES (Australia)


• Redwood Materials, Inc. (U.S.)


• REDUX Recycling GmbH (Germany)


• Raw Materials Company Inc. (Canada)


• Neometals Ltd. (Australia)

KEY INDUSTRY DEVELOPMENTS:

• May 2023: As a part of the Li-Cycle and Glencore joint study, a metallurgical facility of Glencore will be converted into a recycling hub that will provide recycled battery-grade lithium, nickel, and cobalt to Europe for the first time.


• June 2021: Nouveau Monde Graphite Inc. and Lithion Recycling announced the signing of a collaboration agreement to recover and value-added recycled graphite for reuse as anode material for lithium-ion batteries. The agreement will leverage the proprietary processes and expertise of Nouveau Monde and Lithion Recycling to advance the circular economy of graphite and better position both companies in the evolving global market.


• March 2021: Hyundai announced an agreement with Quebec-based Lithion Recycling to recover and recycle high-voltage batteries from some of its hybrid, plug-in hybrid, and electric vehicles to increase the sustainability of its electric vehicle production cycle. Hyundai is the first automaker in Canada to enter into a service agreement with Lithion officially.

REPORT COVERAGE

The report provides a detailed market analysis. The report is focused on providing key information for key products, leading segment information, key developments in the market, and leading product applications. Besides all the information, the report provides insights into the trends of the market and highlights key industry developments. The above factor will reflect the market growth in the coming year.

Report Scope & Segmentation