Battery Recycling Market

[148 Pages Report] The global battery recycling market was valued at USD 8.10 billion in 2016 and is projected to reach USD 11.83 billion by 2022, at a CAGR of 6.5% from 2017 to 2022. The market is expected to witness growth in the coming years, owing to the large number of batteries in-use and strong demand from the replacement market. Extraction of the used battery for its raw materials coupled with the stringent environmental regulations imposed by the local and national governments has spurred growth in the battery recycling market.

Stringent government regulations, rising prices of metals and increasing demand for Energy Storage System is incentizing battery recycling, the market for recycling is expected to reach around USD 12 billion by 2022

Battery recycling is the reuse and reprocessing activity of spent batteries that aims to reduce the number of spent batteries being disposed of as municipal solid waste or material waste. Batteries contain several toxic chemicals and heavy metals and disposing them off as trash has raised environmental and health concerns over water pollution and soil contamination. Leading battery recycling companies includes Call2Recycle, Aqua Metals, and Umicore among others. Europe is the largest market for battery recycling due to the presence of stringent regulations in this region.  

Stringent government regulations to control environmental hazards during battery manufacturing and disposal are driving the growth of the battery recycling market. Industry experts and key decision makers of the governments in many countries are stressing the need for systematic approaches for the recycling of batteries to achieve the higher recycling rates.

The laws and regulations pertaining to the disposal and recycling of spent batteries vary from country to country as well as local governments. Globally, the increasing government directives and regulations to curb pollution levels and controlling the greenhouse gas emissions will provide momentum to drive the battery recycling market.    

Safety issues related to storage and transportation of spent batteries are the major restraints for the market.

Spent batteries contain hazardous chemicals including acids and heavy metals such as mercury and lead. In July 2007, a lithium battery fire resulted in more than 132,000 liters of chemicals being set on fire and closure of two major U.K. motorways.

It is mandatory to keep spent batteries in water tight containers and store them away from other flammable and combustible materials. It is also important to keep a Class D extinguisher and sand nearby as a precautionary measure in the event of a fire.

As spent batteries hold a residual charge, there is a potential for unplanned discharge, which may result in injury or damage to the property and people. All batteries, unless there is proper labelling, should be treated as holding a charge and stored with care. Some batteries are small enough to be ingested or swallowed and thus should be stored in a safe place away from the reach of children.

Market Dynamics

Extracting useful materials from the used batteries can help in regulating the price of new battery

Automotive Batteries

An automotive battery is an indispensable component of the powertrain of a vehicle, independent of the fuel used for its operation. It is used to power the electrical systems of the vehicle when the engine is turned off. It is also used to start the engine and to provide current for the ignition system and electric starter motor. The energy from the battery is also utilized when the electric requirement of the vehicle exceeds its alternator’s capacity. Majority of the vehicles use a 12V lead acid battery for these applications.

The rise in the use of automobiles and growing number of government regulations to recycle the batteries has fuelled the global demand for battery recycling market. The growth in demand is particularly high in the emerging regions such as Asia-Pacific for automobile batteries.

Industrial Batteries

Industrial batteries are manufactured for industrial and professional uses. They are a rugged high-drain standby source of power, used specifically in moving and stationary power applications, such as telecommunications, grid-level energy storage, uninterruptible power supply, industrial equipment, and transport infrastructure, among others.

Spent industrial batteries are primarily of three types, namely, lead-acid batteries (valve-regulated type, flooded type, and thin plate pure lead-acid (TPPL) type), nickel-based batteries (nickel-cadmium and nickel-metal hydride), and lithium-based batteries (all chemistries of lithium-ion and primary lithium). Other types of industrial batteries include sodium-nickel chloride and sodium-sulfur.

The quantity of industrial battery recycling can vary significantly, as the collection rate is influenced by the lifespan of the industrial batteries, which can range from six to ten years. The collection and recycling of industrial batteries are regulated by established industry practices and supplier-customer regimes which vary from country to country. In Europe, the recycling rate is currently high. The spent industrial batteries have a positive market value, so they are in the scope of existing collection regulations by governments between scrap industry and recyclers. The mandatory collection program established in Europe and North America would also drive the industrial source battery recycling market.

Consumer & Electronics Appliance Batteries

The consumer & electronic appliance batteries include chemistries such as lithium primary, alkaline manganese, zinc carbon, zinc air button cells, and silver oxide button cells. They are specifically used in laptops, cell phones, power tools, remote controls, video game systems, toy cars, and all other devices that require energy without a cord. Most of the consumer & electronic appliance batteries get recycled in Europe and North America regions, and the collection rate is influenced by the lifespan of the batteries, which can range from one to three years.

As part of the commitment to reduce the environmental impact in Europe and North America, customers are encouraged to return their used portable batteries to any battery collection sites for recycling.

These batteries contain toxic chemicals, such as lead, mercury, or cadmium. If the spent batteries are disposed of in waste bins, they are likely to end up in a landfill, where they start to break down and can leak some of the chemicals into the ground. This can cause soil and water pollution, which may lead to health risks.  

The objectives of this study are:

• To define, describe, and forecast the battery recycling market based on battery chemistry, battery source, end use, material, and region
• To provide detailed information regarding the key factors influencing the growth of the market, such as drivers, restraints, opportunities, and industry-specific challenges
• To strategically analyze micromarkets1 with respect to growth trends, prospects, and contribution to the total market
• To analyze the opportunities in the market for stakeholders and draw a competitive landscape of the market
• To forecast the market size in terms of value with respect to main regions (along with countries), namely, Asia-Pacific, North America, Europe, Middle East & Africa, and South & Central America
• To strategically profile key players and comprehensively evaluate their current market share
• To analyze competitive developments such as joint ventures, mergers & acquisitions, new product developments, and research & development (R&D) activities in the market

The research methodology used to estimate and forecast the battery recycling market begins with capturing data on key vendor revenues through secondary research. Secondary research was mainly conducted to obtain key information about the industry’s supply chain, the market’s monetary chain, the total pool of players, and market classification & segmentation according to industry trends to the bottom-most level, regional markets, and key developments from both market and technology-oriented perspectives. The primary sources are mainly experts from core and related industries and preferred suppliers, manufacturers, distributors, service providers, technology developers, alliances, and organizations related to all segments of this industry’s value chain. In-depth interviews of various primary respondents that include key industry participants, subject matter experts (SMEs), C-level executives of key market players, and industry consultants were conducted to obtain and verify critical qualitative and quantitative information as well as to assess future prospects of the market.

The vendor offerings were also taken into consideration to determine the market segmentation. After arriving at the overall market size, the total market was split into several segments and subsegments, which were later verified through primary research by conducting extensive interviews with key personnel, such as CEOs, VPs, directors, and executives. Data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments of the market. The breakdown of profiles of primaries is depicted in the figure below.

To know about the assumptions considered for the study, download the pdf brochure

The global battery recycling market has a diversified ecosystem of upstream players, including spent battery suppliers and collectors, along with downstream stakeholders, vendors, and government organizations. Companies operating in the global battery recycling market include Call2Recycle, Inc. (U.S.), Battery Solutions, LLC (U.S), Gravita India Ltd. (India), Johnson Controls Inc. (U.S.), and Exide Technologies Inc. (U.S.), among others.

Major Market Developments

• In February 2017, Johnson Controls and Aqua Metals signed a break-through battery recycling technology partnership under which Johnson Controls will supply batteries to Aqua Metals for recycling and purchase the produced refined lead from Aqua Metals.
• In January 2017, Umicore acquired from 3M the ownership of three Nickel Manganese Cobalt (NMC) patent families for cathode materials used in a wide range of lithium-ion rechargeable batteries. Through this deal, Umicore acquired all existing and future licensing rights to the three patents that it had previously been using under license from 3M. These patents collectively cover South Korea, China, Japan, Europe, and the U.S. and have a validity of between 2021 and 2024.
• In April 2016, to meet the increasing demand, Umicore expanded its capacity for NMC (nickel manganese cobalt) cathode materials. The expansion program entails investments of around USD 177 million over a period of three years at the company’s existing facilities in Cheonan (South Korea) and Jiangmen (China) as well as greenfield investments on adjacent land in both locations.

Target Audience

• Battery Recyclers
• Spent Battery Traders, Suppliers, and Distributors
• Government and Research Organizations
• Associations and Industrial Bodies
• Smelters and Distributors
• Industry Associations

Scope of the report:

On the basis of Chemistry

• Lead Acid Battery
• Lithium-Based Battery
• Nickel-Based Battery
• Other Batteries1

Note: Other Batteries1 include nickel metal hydride, alkaline, lithium, mercury, zinc-carbon, and zinc-air batteries.

On the basis of Source

• Automotive Batteries
• Industrial Batteries
• Consumer & Electronic Appliance Batteries

On the basis of customer segment:

• Original Equipment Manufacturers (OEMs)
• Aftermarket

On the basis of end-use:

• Extraction of Material
• Reuse, Repackaging and Second Life
• Disposal

On the basis of Material:

• Iron
• Manganese
• Nickel
• Lithium
• Lead
• Cobalt
• Aluminum
• Plastic

On the basis of Region:

• Asia-Pacific
• North America
• Europe
• Middle East & Africa
• South & Central America

Key questions

• What would be the future scenario for battery recycling industry? What are the damages caused to the environment by increased dumping of used batteries?
• Can rising raw material prices of battery materials incentivize battery recycling?
• Rising demand for batteries from end-user industries and drying up resources lead to new players entering into the battery recycling market?
• How government policies can propel the growth of battery recycling market?

The following customization options are available for the report:

Along with the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Product Analysis

• Product matrix, which gives a detailed comparison of the product portfolio of each company

Geographic Analysis

• Further breakdown of the Rest of Asia-Pacific, Rest of Middle East & Africa, Rest of Europe, and Rest of South & Central America battery recycling markets

Company Information

• Detailed analysis and profiling of additional market players (up to five companies)

The global battery recycling market is projected to reach USD 11.83 billion by 2022, at a CAGR of 6.5% between 2017 and 2022. The growth of this market can be attributed to the growing demand from the automotive and industrial spent battery sources.

The lead-acid battery chemistry segment dominated the global battery recycling market in 2016, followed by the lithium-based and nickel-based chemistries. It is the most common type of chemistry, and is used in a wide range of automotive and industrial applications. The lead-acid chemistry segment is projected to witness highest growth from 2017 to 2022, due to the increasing in-use of the batteries in starting, lighting, and ignition applications.

Automotive source was the largest segment of the battery recycling market in 2016. An automotive battery is an indispensable component of the powertrain of a vehicle, independent of the fuel used for its operation. It is used to power the electrical systems of the vehicle when the engine is turned off. It is also used to start the engine and to provide current for the ignition system and electric starter motor. The energy from the battery is also utilized when the electric requirement of the vehicle exceeds its alternator’s capacity. Majority of the vehicles use a 12V lead acid battery for these applications.

Extracting useful materials from the used batteries can help in regulating the price of new battery

Automotive Batteries

An automotive battery is an indispensable component of the powertrain of a vehicle, independent of the fuel used for its operation. It is used to power the electrical systems of the vehicle when the engine is turned off. It is also used to start the engine and to provide current for the ignition system and electric starter motor. The energy from the battery is also utilized when the electric requirement of the vehicle exceeds its alternator’s capacity. Majority of the vehicles use a 12V lead acid battery for these applications.

The rise in the use of automobiles and growing number of government regulations to recycle the batteries has fuelled the global demand for battery recycling market. The growth in demand is particularly high in the emerging regions such as Asia-Pacific for automobile batteries.   

Industrial Batteries

Industrial batteries are manufactured for industrial and professional uses. They are a rugged high-drain standby source of power, used specifically in moving and stationary power applications, such as telecommunications, grid-level energy storage, uninterruptible power supply, industrial equipment, and transport infrastructure, among others.

Spent industrial batteries are primarily of three types, namely, lead-acid batteries (valve-regulated type, flooded type, and thin plate pure lead-acid (TPPL) type), nickel-based batteries (nickel-cadmium and nickel-metal hydride), and lithium-based batteries (all chemistries of lithium-ion and primary lithium). Other types of industrial batteries include sodium-nickel chloride and sodium-sulfur.

The quantity of industrial battery recycling can vary significantly, as the collection rate is influenced by the lifespan of the industrial batteries, which can range from six to ten years. The collection and recycling of industrial batteries are regulated by established industry practices and supplier-customer regimes which vary from country to country. In Europe, the recycling rate is currently high. The spent industrial batteries have a positive market value, so they are in the scope of existing collection regulations by governments between scrap industry and recyclers. The mandatory collection program established in Europe and North America would also drive the industrial source battery recycling market.

Consumer & Electronics Appliance Batteries

The consumer & electronic appliance batteries include chemistries such as lithium primary, alkaline manganese, zinc carbon, zinc air button cells, and silver oxide button cells. They are specifically used in laptops, cell phones, power tools, remote controls, video game systems, toy cars, and all other devices that require energy without a cord. Most of the consumer & electronic appliance batteries get recycled in Europe and North America regions, and the collection rate is influenced by the lifespan of the batteries, which can range from one to three years.

As part of the commitment to reduce the environmental impact in Europe and North America, customers are encouraged to return their used portable batteries to any battery collection sites for recycling.

These batteries contain toxic chemicals, such as lead, mercury, or cadmium. If the spent batteries are disposed of in waste bins, they are likely to end up in a landfill, where they start to break down and can leak some of the chemicals into the ground. This can cause soil and water pollution, which may lead to health risks.

Critical questions the report answers:

• What would be the future scenario for battery recycling industry? What are the damages caused to the environment by increased dumping of used batteries?
• Can rising raw material prices of battery materials incentivize battery recycling?
• Rising demand for batteries from end-user industries and drying up resources lead to new players entering into the battery recycling market?
• How government policies can propel the growth of battery recycling market?

Europe is projected to be the fastest-growing market, as it is a major recycler of all chemistries of spent batteries. The growing output of spent batteries from various end-use sources, such as automotive, industrial, and consumer & electronic appliances is responsible for the growth of the Europe battery recycling market. Stringent environmental regulations for proper disposal and recycling of batteries in the economies, such as Germany and the U.K., are also among the factors expected to drive the European battery recycling market during the forecast period. Key countries in the Europe battery recycling market are Germany, the U.K., France, Russia, and Italy.

Stringent government regulations to control environmental hazards during battery manufacturing and disposal are driving the growth of the battery recycling market. Industry.

Key players operational in the battery recycling market include Call2Recycle, Inc. (U.S.), Battery Solutions, LLC (U.S.) Exide Technologies (U.S.), Gravita India Limited (India) and Johnson Controls (U.S.). These companies adopted various strategies to increase their shares in the market. Collaborations, agreements, acquisitions, and expansions are some of the key strategies adopted by market players to achieve growth in the battery recycling market.

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