US Lithium-ion Battery Recycling Market
US Lithium-ion Battery Recycling Market by Source (Automotive, Non-Automotive), Battery Chemistry (LFP, NMC, LMO, NCA, LTO), Battery Component, Recycling Process (Hydrometallurgy, Pyrometallurgy, Physical/Mechanical) - Forecast to 2032
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The US lithium-ion battery recycling market is projected to grow from USD 1.48 billion in 2025 to USD 3.83 billion by 2032, at a CAGR of 14.6% during the forecast period. The market is growing due to the increasing adoption of electric vehicles (EVs), along with renewable energy storage and consumer electronics that rely on lithium-ion batteries. The emergence of the need to obtain critical materials such as lithium, cobalt, and nickel from the environment in a sustainable and cost-effective manner is one of the main drivers, as raw material supply chains are becoming increasingly strained. Moreover, the adoption of strict environmental regulations, coupled with the government's support for circular-economy practices, increases demand for battery recycling. The recycling processes are being technologically improved, and the efficiency and recovery rates are both increasing, which again supports market expansion. All these factors drive the US lithium-ion battery recycling market.
KEY TAKEAWAYS
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BY SOURCEThe consumer electronics segment is projected to register the highest CAGR of 28.8% during the forecast period.
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BY RECYCLING PROCESSBy recycling method, hydrometallurgy is expected to be the fastest-growing segment during the forecast period.
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BY BATTERY COMPONENTBy battery component, the cathode active materials segment is expected to be the fastest-growing segment through the forecast period.
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BY BATTERY CHEMISTRYBy battery chemistry, the lithium nickel manganese cobalt segment is projected to register the highest CAGR of 15.8% in US lithium-ion battery recycling market during the forecast period.
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Competitive Landscape - Key PlayersCirba Solutions, American Battery Technology Company, and Ecobat were identified as some of the star players in the US lithium-ion battery recycling market, given their strong market share and product footprint.
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Competitive Landscape - StartupsBattery Recycling Made Easy and Onto Technology, among others, have distinguished themselves as startups and SMEs by securing strong footholds in specialized niche areas, underscoring their potential as emerging market leaders.
The US lithium-ion battery recycling market is experiencing rapid growth, driven by the increasing adoption of electric vehicles (EVs) and the need for renewable energy storage solutions. The need for efficient recycling and recovery of valuable materials such as lithium, cobalt, and nickel rises as demand for lithium-ion batteries increases. Environmental regulations promoting sustainable practices, together with the technological improvements in recycling, are significant contributors to the market growth. Moreover, the quest for energy independence and secured supply chains is the main driver of the US lithium-ion battery recycling market.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The lithium-ion battery recycling market in the US is changing rapidly. The electrification of the transport sector, the expansion of grid-scale energy storage, and the need to secure critical minerals have been the main drivers of the market transformation. One trend is that recycling facilities are supplying battery-grade lithium, nickel, cobalt, and manganese directly to cell-making companies as part of a closed-loop battery value chain. This is changing the business model entirely by moving from taking commodities to forming strategic partnerships with OEMs and gigafactories. Another major trend is the adoption of hydrometallurgical and direct recycling processes. Recycling integration into the EV and battery manufacturing ecosystem is another huge disruption, aided by federal incentives that prefer recycled materials from the US over those from other countries. Companies are making strategic investments, entering joint ventures, and signing long-term offtake agreements, thereby changing the competitive landscape. In summary, lithium-ion battery recycling is being repositioned from a service at the end of the value chain to a core enabler of the US energy transition and supply chain resilience.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
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Rapid growth in EVs and expanding stationary storage
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Federal policy & funding support
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High collection & logistics costs
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Battery diversity and uncertain feedstock composition
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Domestic value chain integration
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Second-life & repurposing as a near-term revenue stream
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Safety & fire risk management
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Regulatory uncertainty and patchwork rules
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Rapid growth in EVs and expanding stationary storage
The increasing adoption of electric vehicles and the growth of stationary energy storage systems are driving the US lithium-ion battery recycling market. The increase in the use of batteries for electric vehicles is significantly increasing demand for battery manufacturing, which, in turn, is causing significant production waste in the short term and dead batteries in the medium to long term. Because of growing battery use, recyclers have a readily predictable and large feedstock for their operations, which, in turn, strengthens domestic recycling capacity investments. At the same time, the strong use of battery storage for grid stabilization, renewable energy integration, and backup power has further increased the demand for lithium-ion batteries. Utility-scale and commercial energy storage systems have shorter replacement cycles than EVs, leading to earlier recycling volumes and stronger economics for recycling operations.
Restraint: High collection & logistics costs
A major factor restraining the growth of the US lithium-ion battery recycling market is the expensive collection and logistics. The batteries from decommissioned electric vehicles and stationary storage are big, heavy, and considered hazardous materials. This leads to a significant increase in the costs associated with the transportation of batteries from the places where they are collected to recycling plants, especially when it comes to long distances. The problem is made worse by the wide geographical distribution of the batteries that have reached the end of their life and the lack of proper centralized collection infrastructure. A large number of EV batteries are taken out of service in small, scattered amounts that make it inefficient and expensive to collect them together. Furthermore, the risk of fire and thermal runaway with the damaged or partially discharged batteries adds to the storage, insurance, and transport costs. Consequently, logistics can be a significant part of total recycling costs, thus decreasing margins and causing the economic feasibility of recycling operations to slow down especially for the smaller recyclers or those located in areas where there is no processing capacity nearby. The use of standardized collection systems, regional recycling hubs, and designing safer batteries will have to become widespread before high collection and logistics costs will no longer be a drawback to the scalability and profitability of lithium-ion battery recycling in the US.
Opportunity: Domestic value chain integration
The integration of the domestic value chain signifies an enormous opportunity for the US lithium-ion battery recycling market as the country hastens the localization of its battery supply chain. The indirect linkage of recyclers with EV OEMs, battery cell manufacturers, and cathode material producers would allow the reintegration of recycled lithium, nickel, cobalt, and manganese into new battery production, thus creating a closed-loop ecosystem. The integration brings forth material traceability, supply security, and cost stability as benefits to the downstream manufacturers. The growing policy support encouraging the use of battery materials that are sourced and recycled in the USA is another factor that is further strengthening this opportunity. Policies that favor US production will not only incentivize but also promote the conclusion of long-term offtake agreements and forming strategic alliances between recyclers and battery manufacturers which will help in reducing dependence on imported critical minerals. In this way, recycling is transforming from being a mere downstream waste solution to becoming a strategic supplier of battery-grade materials at the upstream end.
Challenge: Safety & fire risk management
Safety and fire risk management are major concerns in the US lithium-ion battery recycling market, given the risks associated with processing, storage, and handling spent batteries. End-of-life and defective lithium-ion batteries can retain charge for a long time and are also the most likely to short-circuit, leading to thermal runaway. This results in a great fire and explosion risk not only during collection and transportation but also during recycling operations. The risks are more severe when batteries are crushed, dismantled, or discharged improperly. Recyclers have no other option but to spend a lot of money on specialized safety infrastructure, including systems that suppress fire, temperature monitoring, controlled storage environments, and trained personnel. They also have to follow very strict federal, state, and local safety regulations, which not only increase the complexity of their operations but also raise costs. The insurance premiums, permit requirements, and facility design standards are also more stringent than for conventional recycling operations.
US LITHIUM-ION BATTERY RECYCLING MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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Recycles end-of-life EV batteries and manufacturing scrap to produce battery-grade lithium, nickel, and cobalt for reuse in new cells | Reduces reliance on imported raw materials, lowers material costs, strengthens domestic supply security |
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Processes gigafactory scrap and EOL batteries using hydrometallurgical technology to recover critical metals | High recovery rates, lower carbon footprint, early-stage revenue from scrap before large EOL volumes |
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Converts recycled batteries into precursor cathode materials for EV batteries | Higher value recovery, direct reuse in battery manufacturing, reduced processing steps |
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Provides collection, logistics, and recycling services for EV OEMs and energy storage operators | Safe handling, regulatory compliance, lifecycle sustainability for customers |
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Specializes in safe discharge, dismantling, and recycling of lithium-ion batteries | Fire risk mitigation, regulatory compliance, improved recycling safety |
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 lithium-ion battery recycling industry in the US is a circular value chain that brings together specialized recyclers, upstream suppliers, distributors, and downstream energy-storage OEMs. The main players in this ecosystem are Ecobat, Redwood Materials, and Cirba Solutions. They are the ones who take in non-functional batteries, along with production scraps, and transform them into metals and active materials that are again suitable for battery manufacturing. Recyclers are also supplied by the large vehicle and battery manufacturers, such as Hyundai and Girardin Blue Bird, who provide the installed base of lithium-ion systems through take-back programs and end-of-life packs for electric vehicles (EVs). Midstream distributors, like Riverland Trading and Brenntag, who are responsible for the quality, logistics, and sale of recycled plastic to chemical and battery manufacturers, are ensuring that these materials can be used as substitutes or complements for virgin inputs. On the demand side, OEMs like Panasonic and Dragonfly Energy, which produce recycled content, manufacture fresh cells, modules, and storage systems, and often these are backed by long-term supply or offtake agreements that give recyclers volume visibility and also work towards closing the loop in a domestic, lower-carbon battery materials supply chain.
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
US Lithium-ion Battery Recycling Market, By Source
The consumer electronics segment is the fastest-growing source in the US lithium-ion battery recycling market. The consumer electronics sector is characterized by the high penetration and rapid replacement cycles of various devices such as smartphones, laptops, tablets, wearables, and cordless power tools. Consumer electronics batteries, compared to EV batteries, have much shorter lifespans, leading to a continuous, prompt flow of end-of-life lithium-ion batteries into waste and recycling systems. The growth of this segment is further reinforced by consumer awareness, retailer take-back programs, and government-imposed stricter rules on electronic waste management. Recycling partnerships are expanding as device manufacturers deepen their sustainability and circular-economy commitments, ensuring the responsible recovery of lithium, cobalt, nickel, and copper from small-format batteries. These programs are driving the volumes of collections, and the recyclers' availability of feedstock is getting better.
US Lithium-ion Battery Recycling Market, By Battery Chemistry
The Nickel Manganese Cobalt (NMC) batteries segment is projected to experience strong growth in the US lithium-ion battery recycling market, driven by their extensive use in electric vehicles and high-density power applications. Manufacturers of major EVs have already opted for NMC chemistries to balance energy density, performance, and driving range; hence, a growing trail of NMC batteries is being used across the US. From a recycling perspective, NMC batteries are highly attractive, as they contain valuable metals like nickel, cobalt, and manganese in large quantities. The abundant supply of battery feedstock with excellent economic returns has made recyclers increasingly optimistic about the future of their business; the outlook will only get better as EV production continues to grow and more and more old NMC batteries become ready for recycling. This has led to the technology investments being made into advanced hydrometallurgical and direct recycling processes, which are particularly tailored for NMC cathode materials and have the ability to achieve high recovery rates while having less of an environmental impact.
REGION
US LITHIUM-ION BATTERY RECYCLING MARKET: COMPANY EVALUATION MATRIX
In the US lithium-ion battery recycling market matrix, Cirba Solutions (Star) leads with a strong market share and extensive product footprint, driven by its lithium battery recycling solutions, which are adopted by various end users. Ecobat (Emerging Leader) demonstrates substantial product innovations compared to its competitors. While Cirba Solutions dominates through scale and a diversified portfolio, Ecobat's lithium-ion battery recycling solutions show significant potential to move toward the leaders’ quadrant as demand for battery recycling continues to rise.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2025 (Value) | USD 1.48 BN |
| Market Forecast in 2032 | USD 3.83 BN |
| CAGR (2025–2032) | 14.6% |
| Years Considered | 2021–2032 |
| Base Year | 2024 |
| Forecast Period | 2025–2032 |
| Units Considered | Value (USD Million/Billion) and Volume (Kiloton) |
| Report Coverage | The report defines, segments, and projects the US lithium-ion battery recycling market size based on source, recycling process, battery component, battery chemistry, and region. It strategically profiles the key players and comprehensively analyzes their market share and core competencies. It also tracks and analyzes competitive developments, such as new product developments, agreements, acquisitions, and expansions they undertake in the market. |
| Segments Covered | Source (Industrial, Power, Marine, Consumer Electronics, and Other Sources) |
| Regional Scope | US |
WHAT IS IN IT FOR YOU: US 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 |
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| EV OEMs & Automotive Tier-1 Suppliers (EV battery packs, modules, manufacturing scrap) |
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| Battery Cell & Gigafactory Manufacturers (Cathode, anode, cell assembly) |
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| Stationary Energy Storage Operators & Utilities (Grid-scale ESS, commercial storage) |
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| Consumer Electronics Manufacturers & Retailers (Smartphones, laptops, power tools) |
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| Cathode & Battery Materials Producers (CAM, precursors, refiners) |
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| Logistics & Waste Management Companies |
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| Government Agencies & Municipal Programs |
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RECENT DEVELOPMENTS
- February 2024 : Cirba Solutions and EcoPro signed an MoU to improve lithium-ion battery recycling. This collaboration is crucial due to the increasing demand for battery materials and the focus on clean energy production in the US.
- September 2023 : BASF and Nanotech Energy partnered to create a North American battery supply chain focused on recycled materials. In 2024, BASF will start manufacturing cathode materials for batteries from recycled metals at its Michigan plant. They will collaborate with American Battery Technology Co. and Toda Advanced Materials to ensure a steady supply of recycled materials and create a more sustainable battery production process.
Table of Contents
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Methodology
The study involved four major activities in estimating the current size of the US 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 US 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; US 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 US 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 US 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:
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both the top-down and bottom-up approaches have been used to estimate and validate the total size of the US 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 US 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
US 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. US 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 US 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 US 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 US 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 US 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 US Lithium-ion Battery Recycling Market