Electric Vehicle Battery Recycling Is Estimated To Witness High Growth
The electric vehicle battery recycling market consists of recycling process that revolves around lithium-ion batteries once they reach the end of their vehicle life. These recycled materials extracted from spent lithium-ion batteries help reduce costs andenergy usage for production of new batteries. Global adoption of electric vehicles is growing at a significant rate leading to an increase in spent lithium-ion batteries. The global electric vehicle battery recycling Market is estimated to be valued at US$ 2.4 Bn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity: Addressing the issue of battery waste management presents a key opportunity for growth in the electric vehicle battery recycling market. As electric vehicle sales continue to surge, tons of spent lithium-ion batteries will need to be recycled or discarded each year. However, landfilling or incineration of batteries is not a sustainable solution due to environmental and safety issues. Battery recycling recovers valuable and scarce materials like lithium, cobalt, nickel, and manganese which can then be re-introduced into the supply chain. Increased recycling can significantly boost material recovery rates and reduce dependence on virgin material mining. Recycling also lowers costs and energy usage for battery production. Rising battery waste volumes coupled with stringent regulations against battery disposal provide a massive market opportunity for electric vehicle battery recycling.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the electric vehicle battery recycling market is moderate as it requires high initial investments in recycling facilities and infrastructure. However, supportive government policies and rising lithium-ion battery waste are gradually lowering the barriers.
Bargaining power of buyers: The bargaining power of buyers in the electric vehicle battery recycling market is moderate. The buyers have a choice of recycling vendors but their bargaining power depends on the volumes being recycled.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as well. The suppliers of spent lithium-ion batteries require proper handling and processing facilities. However, production waste from battery manufacturing is a major supplier to recyclers.
Threat of new substitutes: The threat of substitutes is low as battery recycling is the only economically and environmentally viable option for recovering materials from spent batteries.
Competitive rivalry: The competitive rivalry in the market is high due to increasing number of recyclers and a need to adopt innovative recycling processes to improve recovery rates.
SWOT Analysis
Strength: Growing EV sales and battery waste volumes provide a steady supply of batteries for recycling. Recycling recovers critical materials and promotes a circular economy.
Weakness: Battery recycling is a complex and expensive process requiring heavy investments. Variations in battery chemistry pose challenges in adopting universal recycling processes.
Opportunity: Government support through regulations and subsidies can boost investments in recycling infrastructure. New applications for recycled materials present commercialization opportunities.
Threats: Collection logistics and inadequate waste management can hamper smooth supply of batteries for recycling. Competition from primary metal production based on low-cost reserves.
Key Takeaways
The Global Electric Vehicle Battery Recycling Market Demand is expected to witness high over the forecast period supported by rapid adoption of electric vehicles worldwide.
Regional analysis: China has emerged as the leading market for electric vehicle battery recycling supported by large production of EVs and nationwide recycling infrastructure. Japan and South Korea also have considerable recycling volumes due to advanced battery industries and recycling mandates. In Europe, Germany and Scandinavian countries have established battery collection and recycling schemes achieving recycling rates over 50%.
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