The rapidly growing global battery recycling sector will be worth an estimated US$ 12 billion (EUR 11.4 billion) by 2031, reports Transparency Market Research.
The battery recycling segment will see a notable jump from 2020 levels, when it raked in almost US$ 4.5 billion. Market analysts predict a 10% increase during the forecast period 2021-2031. They observe that lead acid batteries remain one of the most recycled types of battery.
The Asia Pacific region led the global battery recycling market in 2020 and is likely to continue to do so. The region’s dominance is attributed to a rising demand for vehicles due to increasing per capita income. Annual sales of passenger light commercial cars have reached 11 million units.
‘Rising environmental concerns and a steady increase in the quantity of outdated lithium-ion batteries is expected to act as a major growth driver for the global battery recycling market in the years to come,’ the report states. A second study underlines the recycling potential in the automotive sector.
‘The global electric vehicle battery recycling market size is projected to grow from US$ 2.3 billion this year to US$ 12.5 billion by 2030,’ writes Market Data Centre. This represents compound annual growth 31.6% during the next eight years.
Regarding EV batteries, electronics recycler Attero just announced it is ramping up its total lithium-ion battery recycling capability from 11 000 tonnes to 300 000 tonnes per year.
Analysts go on state that companies in the market for battery recycling are taking advantage of government stimulus packages and support from the BFSI (banking etc.) sector, since financial situations have been ‘squeezed’ for many due to the COVID-19 crisis. ‘However, there is a lack of investment in battery recycling infrastructure in developing economies.’
It’s suggested established and cash-rich companies should capitalise on this opportunity to invest in battery recycling plants whilst working closely with governments to improve policies, offer incentives, and build infrastructure.
Furthermore, the unprecedented use and demand for consumer electronics such as smartphones, tablets, and laptops holds ‘promising value-grab opportunities’ for market stakeholders.