The global lithium ion battery recycling market reached a value of $165.3 million in 2019 and is predicted to grow at an 18.3% CAGR during the forecast period (2019–2030), as per a report by P&S Intelligence. The industry is growing due to the limited availability of lithium metal and rising popularity of electric vehicles across the globe. On the basis of type, the market is categorized into Li-NMC, LMO, LCO, Li-NCA, and LFP.
The LCO category accounted for the major share of the market in the past and is projected to dominate the market in the coming years as well, owing to the high usage of these devices in portable consumer electronics, such as tablets, laptops, and mobile phones. These energy storage devices further have a number of advantages, including high-voltage discharge, high energy density, and long life, which increase their popularity. The LFP category is expected to exhibit the highest CAGR during the forecast period.
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When end user is considered, the Li-ion battery recycling market is divided into automotive, power, electrical & electronics, and others. Among all these, the automotive industry led the market in the past, and it is further projected to advance at the fastest pace during the forecast period. This is because of the growing use of Li-ion batteries in electric vehicles, which, in turn, is due to the surging concerns regarding greenhouse gas emissions from conventional gasoline and diesel vehicles.
Geographically, the Asia-Pacific region led the Li-ion battery recycling market in 2019, owing to the presence of a large number of battery recycling companies, majorly in China. In addition to this, the increasing popularity of electric vehicles in Japan, China, Vietnam, the Philippines, and Indonesia is also leading to the growth of the regional market. The further demand for electric vehicles in the region is bound to create high demand for recycled Li-ion batteries during the forecast period.
A key trend being observed in the Li-ion battery recycling market is the limited availability of the lithium metal. Apart from the limited resources of this metal, the mining of Li is highly damaging to the environment, since it causes water pollution. Chemicals produced during the mining process are leaked into the water supply, thereby making it unfit for consumption. Moreover, since there is no alternative no Li as of now, players are focusing on recycling the metal for further use.
The electrical & electronics sector is expected to open up wide opportunities for the players operating in the Li-ion battery recycling market in the years to come. Li-based energy storage devices are used extensively in tablets, mobile phones, and laptops, owing to which, the expansion of the sector will drive the demand for Li. Owing to the limited availability of the metal, the need for recycling existing Li-ion batteries is predicted to increase during the forecast period.
Hence, the market is growing due to the limited availability of Li and expanding electrical & electronics sector.