The lithium-ion battery recycling market is projected to grow from EUR 5.9 billion in 2022 to almost EUR 32 billion by 2031. This suggests a healthy growth rate of 20.6% during the forecast period.
‘The lithium-ion battery recycling market is on the way for intense growth across different sources such as automotive and industrial, consumer electronics, power, and marine,’ according to a analysts at ReportLinker. Especially Europe is well positioned to witness strong growth.
By battery chemistry, the lithium-iron phosphate (LFP) segment is expected to be the second largest segment of lithium-ion battery recycling market. These are typically used in high-power devices and equipment. The phosphate cathode material employed in LFP has a long-life cycle, high current rating, high thermal stability, and enhanced safety due to higher tolerance.
‘Increasing use of LFP in high-power applications such as EV cars and power tools, among others, is expected to lead to the growth of the LFP segment in the lithium-ion battery recycling market,’ analysts note.