The worldwide lithium-ion battery recycling market will experience a significant surge in the next couple of years, according to analysts at Data Bridge Market Research.
The global battery recycling sector was worth USD 2.17 billion last year. This value is projected to increase by 420 million, representing a compound annual growth rate of 20.95% in the forecast period of 2019-2026. This expected rise in market is said to increase in tandem with a rise in volume of used lithium-ion batteries available for recycling.
Meanwhile, the production of lithium-ion batteries was worth over 36 billion in 2018. If the upwards trend continues, we could be looking at a 109 billion lithium-ion battery production sector by 2026.
The question is; will recycling will be able to catch up with the booming battery sector, especially considering falling battery prices are pushing demand for consumer electronics and e-mobility. It is noted that approximately 1.6 million electric cars were on the roads in China in 2018, followed by 810 000 in the United States. Bear in mind that Swiss start-up Innolith recently announced it has created the world’s first rechargable high-density 1,000 Wh/kg lithium-ion battery.
Market drivers for battery recycling:
- Growing concern regarding the depletion of metals and recycling of batteries helping in recovering these resources; this factor is expected to act as a driver for battery recycling
- Increase in adoption and uses of lithium-ion batteries resulting in rise of recycling of these batteries; this factor will likely boost recycling down the line
- Concern regarding the safety and disposal of the materials in the whole recycling process of the used batteries is expected to act as a restraint to the market growth