How Does Rising EV Traction Propel Lithium-Ion Battery Recycling Industry Growth?
The lithium-ion battery recycling industry is projected to rise in the coming future, and generate $991.5 million revenue in 2030
The lithium-ion battery recycling industry is projected to rise in the coming future, and generate $991.5 million revenue in 2030, ascribed to the limited presence of lithium, and rising demand for electric vehicles.
Under the battery type segment, the lithium-cobalt battery captures a significant share of the industry. It is predicted to retain its dominance in the near future, ascribed to the large energy density f the LCO batteries. It makes them suitable for portable electronic devices, such as mobile phones, laptops, and tablets. Additionally, recycled LCO batteries possess high discharge voltage leading to their multiple applications.
Under the end-user segment, the automotive industry captures the largest share of the industry, and it is projected to reflect the fastest growth in the near future. It is led by the growing adoption of electric vehicles worldwide. Moreover, the limited lithium reserves contribute to the recycling of lithium-ion batteries for future use. The rising adoption of electric vehicles is projected to propel the demand for the recycling of lithium-ion batteries in the coming future.
APAC dominates the lithium-ion battery recycling industry, and it is predicted to follow the same trend in the near future. It is ascribed to the growing adoption of electric vehicles to cater to lithium-ion battery demand in the automotive industry. Automotive manufacturing companies are saving these batteries with recycled materials.
Moreover, the rising adoption of electric vehicles led by the growing awareness of its environmental benefits is projected to propel the recycled lithium-ion batteries demand in the coming future.
The rising usage of lithium industries has resulted in growing concerns over its limited availability for future applications. Lithium mining negatively impacts the environment, that includes water pollution caused by chemical leakage. It results in increased traction of lithium-ion batteries.
In addition, recycling supports manufacturers in ensuring the sufficient availability of lithium for future usage in batteries and other applications. Therefore, the limited presence of lithium fuels the lithium-ion battery recycling industry.
The lithium-ion battery recycling solutions industry has reflected tremendous growth, led by the rising automotive industry. It is ascribed to the surging adoption of electric vehicles, specifically in emerging nations, as well as rising environmental concerns. The number of EVs will rise to 245 million units in 2030, led by the growing lithium-ion batteries to cater to the future demand for batteries, according to the Sustainable Development Scenario of IEA.
The industry players are partnering and collaborating to remain at the competitive edge. For instance, MG Motor India Pvt. Ltd. partnered with TES Pte. Ltd. in December 2020, for lithium-ion batteries recycling. It will contribute to sustainable and secure recycling of electric vehicle batteries without impacting the environment.
The major players operating in the lithium-ion battery recycling industry are; Li-Cycle Corp., RECUPYL S.A.S., Retriev Technologies, Neomatals Ltd., Li-Cycle Corp., American Manganese Inc., Umicore Group, Hunan Brunp Recycling Technology Co. Ltd., and Ganfeng Lithium Co. Ltd.
Therefore, the demand for lithium-ion battery recycling is projected to rise in the coming years, led by the limited availability of lithium.
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