North America Lithium-ion Battery Recycling Market
North America Lithium-ion Battery Recycling Market by Source (Automotive, Non-Automotive), Battery Chemistry (LFP, NMC, LMO, NCA, LTO), Component, Recycling Process (Hydrometallurgical, Pyrometallurgy, Physical/Mechanical), and Country - Forecast to 2032
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The North America lithium-ion battery recycling market is projected to grow from USD 2.43 billion in 2025 to USD 7.38 billion by 2032, at a CAGR of 17.2% during the forecast period. The North American lithium-ion battery recycling market is experiencing robust growth as a result of growing electric vehicles, the growing battery consumption for consumer electronics, and the strict environmental regulations that are coming into effect in the US, Mexico, and Canada. Producers and governments are investing significantly in modern recycling plants to recover valuable resources like lithium, cobalt, and nickel, which in turn reduces dependence on imported raw materials and supports local battery supply chains. The increasing attention towards circular economy models, together with federal and state policies, is driving the market for lithium-ion battery recycling.
KEY TAKEAWAYS
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BY COUNTRYThe US country is expected to register the highest CAGR of 18.5% during forecast period.
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BY CHEMISTRYBy chemistry, the lithium nickel manganese cobalt segment accounted for a 57.7% market share in 2024.
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BY SOURCEBy source, the non-automotive segment is expected to register the highest CAGR of 19.9% during the forecast period.
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BY RECYCLING PROCESSBy recycling process, the hydrometallurgical recycling process is expected to dominate the market.
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BY BATTERY COMPONENTBy battery component, the active material segment is expected to dominate the market.
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Competitive Landscape - Key PlayersRedwood Materials, Inc. (US), Cirba Solutions (US), and RecycLiCo Battery Materials Inc. (Canada) were identified as some of the star players in the North America lithium-ion battery recycling market, given their strong market share and product footprint.
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Competitive Landscape - StartupsBattery Recycling Made Easy, Lithion Technologies, Sitrasa, and others have distinguished themselves among startups and SMEs by securing strong footholds in specialized niche areas, underscoring their potential as emerging market leaders.
The market is witnessing strong growth driven by the rapid expansion of EV adoption, increasing deployment of energy storage systems, and a rising volume of end-of-life lithium-ion batteries entering the supply chain. Supportive government policies, growing emphasis on circular economy practices, and the need to secure domestic supplies of critical minerals such as lithium, nickel, and cobalt are accelerating investments in advanced recycling facilities across the US, Canada, and Mexico.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The impact on consumers' businesses arises from evolving customer trends or market disruptions. The growth of end-use industries, such as automotive batteries, industrial batteries, consumer & electronics batteries, and energy storage systems (ESS) batteries, drives the market growth. These megatrends are expected to drive growth and increase the revenue of the market.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
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Rapid growth of electric vehicles in US and Canada
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Stringent government regulations related to battery recycling, along with EPA guidelines in North America
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Safety issue related to storage and transportation of spent batteries
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Rising demand for renewable energy storage system
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High cost of recycling and dearth of technologies
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Rapid growth of electric vehicles in US and Canada
The accelerating adoption of electric vehicles across the US and Canada is significantly boosting the volume of lithium-ion batteries entering the recycling stream. As OEMs expand EV production and early EV models approach the end of their life, the region is experiencing a sharp rise in spent batteries and manufacturing scrap from new gigafactories. The significant increase in electric vehicle (EV) deployment not only improves the availability of raw materials for recycling but also boosts the recycling capacity of advanced techniques to recover essential minerals like nickel, lithium, and cobalt. Thus, the growing adoption of EVs is the main factor in the rise of the North American lithium-ion battery recycling market.
Restraint: Safety issue related to storage and transportation of spent batteries
The safety issues related to the storage and transport of used lithium-ion batteries are so serious that they have practically frozen the recycling market. Cells that are damaged, swollen, or not properly packed might go through thermal runaway and produce fires that are not only very hard to put out but also might set off similar incidents, which have been happening frequently at places where batteries are collected, moved, and recycled. Regulators consider lithium batteries hazardous and, thus, apply strict rules related to packaging, labeling, state-of-charge, and handling. Compliance requires specialized storage, transport procedures, insurance, and staff training. The costs and restrictions of operations that result from these requirements act as entry barriers, reduce the collection of feedstocks, and limit capacity, thereby making it necessary for the industry to rely on standardized collection systems and safer battery designs to reach large-scale production
Opportunity: Rising demand for renewable energy storage system
In the US and Canada, the rapid growth of mainly solar and wind renewable energy projects is the primary reason for the substantial demand for stationary energy storage systems, which are heavily based on lithium-ion batteries. With the widespread increase in large-scale grid storage, residential solar-plus-storage, and backup systems for commercial use, the amount of discarded ESS batteries in the future will be considerably larger. This soon-to-come lot of extensive battery waste is a big chance for the recyclers to not only get a long-term steady supply of feedstock but also help in the recycling of critical materials, which are very important for the clean energy transition through the circular supply
Challenge: High cost of recycling and dearth of technologies
The economic feasibility of lithium-ion battery recycling in North America is still being hindered by high recycling costs and the non-existence of mature, scalable technologies. Recycling facilities require substantial investments in specialized equipment, energy, and skilled labor. Besides, the already high recycling costs, which sometimes exceed the value of the recovered materials, are especially problematic when the metal prices are volatile. Moreover, the absence of uniform and automated practices for various battery chemistries, formats, and pack designs leads to manual disassembling, which is heavily reliant on safety measures and has low output. These reasons give rise to high unit processing costs, poor returns, and unattractive investments.
NORTH AMERICA LITHIUM-ION BATTERY RECYCLING MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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Manages nationwide collection and recycling programs for consumer batteries, supporting retailers, manufacturers, and municipalities with safe battery disposal solutions across North America | Enhances responsible battery waste management, reduces landfill risks, ensures compliance with recycling regulations, and supports sustainability goals through safe and efficient material recovery |
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Provides end-to-end lithium-ion and specialty battery recycling services, including collection, transportation, sorting, and advanced material recovery for automotive, industrial, and electronics sectors | Improves resource circularity by recovering valuable metals, enhances operational safety through proper battery handling, reduces environmental impact, and supports domestic supply chains for critical materials |
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Offers recycling and refined-material recovery solutions for spent lithium-ion batteries used in energy-storage systems, electric vehicles, and industrial applications, using advanced hydrometallurgical processing | Improves efficiency of raw-material reuse, lowers waste generation, reduces reliance on imported critical minerals, and supports cleaner manufacturing through sustainable recycling practices |
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Specializes in lead-acid and lithium-ion battery recycling, operating smelting and metal-recovery facilities that process automotive, industrial, and backup-power batteries across North America | Extends battery lifecycle through high-yield metal recovery, reduces environmental hazards from improper disposal, supports closed-loop lead and lithium supply chains, and strengthens regional manufacturing sustainability |
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Recycles end-of-life lithium-ion batteries and manufacturing scrap to extract key materials such as lithium, nickel, and cobalt, and reintegrates them into new battery-component production | Supports a circular EV-battery ecosystem, reduces dependence on mining, lowers carbon footprint, improves material supply security, and enhances overall economic and environmental sustainability for battery manufacturers |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The North America lithium-ion battery recycling ecosystem consists of raw material suppliers (e.g., Hyundai, Girardin Blue Bird, and others), producers (e.g., Recyclico Battery Materials Inc., Cirba Solutions, Redwood Materials, Inc.), distributors (e.g., Brenntag N.V., Riverland Trading), and end users (e.g., Panasonic Holdings Corporation, and others).
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
North America Lithium-ion Battery Recycling Market, By Chemistry
The LFP (lithium iron phosphate) segment is expected to be the fastest-growing segment in the market because of its increasing use in energy storage systems, electric vehicles, and industrial equipment. LFP batteries are safer, last longer, and are more cost-effective; thus, they are widely used in various applications. Their increasing adoption in large-scale energy storage projects, where durability and cost-efficiency are the main concerns, is also one of the factors contributing to their market growth. With the widespread use of LFP batteries, the number of end-of-life units is expected to increase, creating a demand for effective lithium recovery solutions. Consequently, the recycling of LFP will continue to grow in response to this demand.
North America Lithium-ion Battery Recycling Market, By Source
The non-automotive sector, by source, is expected to be the fastest-growing segment in the market. The increasing demand for lithium-ion batteries in consumer electronics, power, marine, and industrial applications has contributed to the rise in the volume of end-of-life batteries. The increasing use of lithium-ion batteries for grid stabilization, renewable energy integration, and backup power systems is also contributing to the future recycling stream. In addition, electric smartphones and laptops are in high demand, while their continuous consumption in marine vessels and industrial machines remains high and rapid, necessitating their disposal and the recovery of their precious materials in an efficient manner.
REGION
US to be fastest-growing country in North America lithium-ion battery recycling market during forecast period
The US is expected to register the highest growth in the North American lithium-ion battery recycling market. The market is experiencing strong growth driven by rising EV adoption, expanding energy storage deployments, and the expanding consumer electronics industry. The market is steadily expanding as environmental awareness increases and regulatory frameworks strengthen. The country continues to develop its battery collection and recycling infrastructure, supported by initiatives that promote public participation through designated collection centers and nationwide awareness campaigns. Federal initiatives that mandate manufacturers to ensure proper collection and recycling of spent batteries, along with growing industry engagement, are expected to significantly accelerate the growth of the lithium-ion battery recycling sector in the US.
NORTH AMERICA LITHIUM-ION BATTERY RECYCLING MARKET: COMPANY EVALUATION MATRIX
In the North America lithium-ion battery recycling market matrix, Redwood Materials, Inc. (Star) leads with its integrated supply chain to maximize market reach and product diversification. Players under the Stars category primarily focus on new service & technology launches, as well as acquiring leading market positions through the provision of broad portfolios that cater to the different requirements of customers. They are also focused on innovations and are geographically diversified. They also have broad industry coverage. Apart from that, they have strong operational and financial strength and endeavor to grow organically and inorganically in the market. Aqua Metals, Inc. (Emerging Leader) has a strong potential to develop effective strategies for business expansion and stay competitive with the industry's top performers. However, emerging leaders have not adopted effective growth strategies for their overall business.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- Cirba Solutions (US)
- Ecobat (US)
- Redwood Materials Inc. (US)
- American Battery Technology Company (ABTC) (US)
- Recyclico Battery Materials Inc. (Canada)
- Battery Recycling Made Easy (US)
- Lithion Technologies (Canada)
- Onto Technology (US)
- Sitrasa (Mexico)
- SMC Recycling (US)
- Aqua Metals, Inc. (US)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | USD 1.82 BN |
| Market Forecast in 2032 (Value) | USD 7.38 BN |
| CAGR (2025–2030) | 17.2% |
| Years Considered | 2021–2032 |
| Base Year | 2024 |
| Forecast Period | 2025–2032 |
| Units Considered | Value (USD Billion) |
| Report Coverage | Revenue forecast, competitive landscape, growth factors, and trends |
| Segments Covered | By Source: Automotive and Non-Automotive |
| Countries Covered | US, Canada, and Mexico |
WHAT IS IN IT FOR YOU: NORTH AMERICA LITHIUM-ION BATTERY RECYCLING MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Support in planning end-of-life EV battery recovery and closed-loop recycling | We analyzed EV retirement timelines, chemistry-wise recycling economics, and optimal reverse-logistics networks. The study also mapped US/Canada regulatory requirements and benchmarked hydrometallurgical and direct recycling options to help OEMs design effective take-back programs. | This enabled OEMs to secure critical minerals through closed-loop systems, reduce supply-chain risk, and meet compliance and sustainability goals while lowering long-term material costs. |
| Optimize recycling of production scrap and evaluate in-house vs. outsourced recycling | We assessed scrap generation trends across cell formats, modeled black mass output, and compared the economics of on-site preprocessing with third-party recyclers. Incentive mapping helped identify federal and provincial funding opportunities for domestic recovery. | Clients reduced waste-handling costs, improved recovery yields, and strengthened eligibility for critical-mineral tax credits, supporting more resilient and sustainable manufacturing. |
| Improve recovery and safe handling of small-format Li-ion batteries | We evaluated collection networks, safe disassembly processes, and revenue potential from cobalt-rich chemistries. Regulatory and export compliance assessments supported secure and efficient material flows. | Clients enhanced recycling margins, minimized safety risks, and strengthened adherence to e-waste stewardship requirements. |
| Assess end-of-life pathways and second-life potential for ESS batteries | We modeled ESS retirement cycles, compared second-life reuse with direct recycling, and evaluated compliance with NFPA and UL standards. Market insights supported strategic planning for future feedstock volumes. | Clients identified cost-effective repurposing opportunities, extended asset value, and ensured regulatory compliance while preparing for rising recycling demand. |
RECENT DEVELOPMENTS
- June 2023 : RecycLiCo, a battery recycling company, partnered with Zenith Chemical to build a USD 25 million lithium-ion battery recycling plant in Taiwan. This plant will process used batteries and turn them into valuable materials for new batteries.
- April 2023 : Cirba Solutions signed a Memorandum of Understanding (MoU) with Honda to collect, process, and return recycled battery materials to be used as raw material feedstock for Honda’s battery supply chain for application in future electric vehicle batteries.
- February 2023 : Ecobat signed a strategic partnership with Tevva, a British electric vehicle manufacturer, for the repair, repurpose, and recycling of lithium-ion batteries. The partnership started with a 12-month pilot for battery handling and repair with an opportunity to expand into repurposing and recycling.
Table of Contents
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Methodology
The study involved four major activities in estimating the current size of the north america lithium-ion battery recycling market. Exhaustive secondary research was done to collect information on the market, peer markets, and parent market. The next step was to validate these findings, assumptions, and sizing with the industry experts across the north america lithium-ion battery recycling value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Secondary sources for this research study include annual reports, press releases, and investor presentations of companies; white papers; certified publications; and articles by recognized authors; gold- and silver-standard websites; north america lithium-ion battery recycling manufacturing companies, regulatory bodies, trade directories, and databases. The secondary research was mainly used to obtain key information about the industry’s supply chain, the total pool of key players, market classification, and segmentation according to industry trends to the bottom-most level and regional markets. It has also been used to obtain information about key developments from a market-oriented perspective.
Primary Research
The north america lithium-ion battery recycling market comprises several stakeholders, such as such as raw material suppliers, technology support providers, lithium-ion battery recyclers, and regulatory organizations in the supply chain. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Primary sources from the supply side included industry experts such as Chief Executive Officers (CEOs), vice presidents, marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the north america lithium-ion battery recycling market. Primary sources from the demand side included directors, marketing heads, and purchase managers from various sourcing industries. Following is the breakdown of the primary respondents:
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Market Size Estimation
Both the top-down and bottom-up approaches have been used to estimate and validate the total size of the north america lithium-ion battery recycling market. These approaches have also been used extensively to estimate the size of various dependent subsegments of the market. The research methodology used to estimate the market size included the following:
The following segments provide details about the overall market size estimation process employed in this study
- The key players in the market were identified through secondary research.
- The market shares in the respective regions were identified through primary and secondary research.
- The value chain and market size of the north america lithium-ion battery recycling market, in terms of value, were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research included the study of annual and financial reports of the top market players and interviews with industry experts, such as CEOs, VPs, directors, sales managers, and marketing executives, for key insights, both quantitative and qualitative.
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, the data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides in the oil & gas sector.
Market Definition
north america lithium-ion battery recycling refers to the reuse and reprocessing of spent lithium-ion batteries to reduce their disposal as municipal solid waste or material waste. Lithium-ion batteries contain several toxic chemicals & heavy metals and disposing of them as trash has raised environmental and health concerns due to water pollution and soil contamination. north america lithium-ion battery recycling is important not only for the recovery of valuable materials and metals but also for efficient waste management. Various types of lithium-ion batteries are available in the market, including lithium-titanate oxide (LTO), lithium-manganese oxide (LMO), lithium-iron phosphate (LFP), lithium-nickel cobalt aluminum oxide (NCA), and lithium-nickel manganese cobalt (Li-NMC). These batteries are majorly used in the automotive and non-automotive industries such as marine, power, industrial, and others. Li-ion batteries provide the required amount of power at a low cost and help reduce the weight and size of products, which are the major factors leading to the market growth. The rising demand for Li-ion batteries in electric vehicles is expected to lead to the growth of the north america lithium-ion battery recycling market during the forecast period.
Key Stakeholders
- Raw material manufacturers
- Technology support providers
- Recyclers of Lithium-ion battery
- Traders, distributors, and suppliers
- Regulatory Bodies and Government Agencies
- Research & Development (R&D) Institutions
- End-use Industries
- Consulting Firms, Trade Associations, and Industry Bodies
- Investment Banks and Private Equity Firms
Report Objectives
- To analyze and forecast the market size of north america lithium-ion battery recycling market in terms of value
- To provide detailed information regarding the major factors (drivers, restraints, challenges, and opportunities) influencing the regional market
- To analyze and forecast the global north america lithium-ion battery recycling market on the basis of battery chemistry, source, recycling process, battery component, and region
- To analyze the opportunities in the market for stakeholders and provide details of a competitive landscape for market leaders
- To forecast the size of various market segments based on four major regions: North America, Europe, and Asia Pacific, along with their respective key countries
- To track and analyze the competitive developments, such as acquisitions, partnerships, collaborations, agreements and expansions in the market
- To strategically profile the key players and comprehensively analyze their market shares and core competencies
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the client-specific needs.
The following customization options are available for the report:
- Additional country-level analysis of the north america lithium-ion battery recycling market
- Profiling of additional market players (up to 5)
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company.
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Growth opportunities and latent adjacency in North America Lithium-ion Battery Recycling Market