North America Battery Recycling Market Size (2024-2030)

The North America Battery Recycling Market was valued at USD 3,393.09 million and is projected to reach a market size of USD 7510.41 million by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 12.02%.

Batteries have been an essential component in nearly all North American industries, due to their high energy, power, and increased performance. Moreover, the demand for batteries has increased in recent times due to the rapid adoption of electric vehicles that require lithium-ion batteries for power storage. Furthermore, advancement in technology in the region boosted the manufacturing of high-end smartphones, smartwatches, and laptops that cater to various consumer needs; leading to increased usage of nickel and lithium-ion batteries. This increased usage of batteries along with government regulations necessitated the need to recycle batteries, as batteries contain corrosive materials and heavy metal that can deteriorate the environment upon wastage of electronics and allied components. The future holds positive for the battery recycling market in North America, as the government, manufacturers & producers, and consumers become more environmentally conscious regarding battery usage and disposal. Additionally, advancements in battery recycling technology are further anticipated to shape the market landscape for battery recycling in North America.

Key Market Insights:

As per the International Energy Agency (IEA), In 2022, battery demand rose to 80% for electric vehicles in the USA.

As per the Energy Information Administration (EIA), solar power and batteries accounted for 60% of US electric generation capacity.

Furthermore, as per Call2Recycle’s release of National Battery Collection & Recycling data, 8 million pounds of batteries were collected in the USA for recycling, of which 3 million pounds were of lithium-ion batteries.

According to the Energy Information Administration (EIA), in October 2022, the battery storage capacity in the USA was 7.8 GW.

As per Government of Canada natural resources data, Canada domestically exported US$38.6 million of lithium primary cells and non-rechargeable batteries, of which 56% went to the United States.

Furthermore, Li-Cyle, a battery recycling company in Canada, processed and recycled 5000 tonnes of used lithium-ion batteries in the year 2020.

North America Battery Recycling Market Drivers:

Stringent government regulations have boosted the demand for battery recycling in the North American market.

Government regulations focused on environmental protection, conservation of resources such as lithium, nickel, lead, and others, and economic incentive schemes have boosted the battery recycling market in North America. For instance, United States EPA (Environment Protection Agency) regulations for lithium-ion batteries such as not disposing of these batteries in household garbage or recycling bins, and Federal Battery Laws to phase out the use of mercury-containing batteries and provide recycling for small sealed lead-acid and nickel-cadmium batteries. Furthermore, many states in the region require battery manufacturers and retailers to comply with recycling regulations, boosting the market for battery recycling in the region. In addition, the implementation of PPR (Producer Responsibility Programs) requires manufacturers to responsibly collect and recycle products at the end of the battery life cycle. For instance, California has an EPR scheme for rechargeable batteries that makes it mandatory for battery producers to create or fund stewardship programs for recycling and collecting batteries that are sold in California.

Increased use of batteries has boosted the demand for battery recycling in the North American market.

North America has been witnessing an increase in the use of batteries from the automotive and consumer electronics industries. This is attributed to the rise in the consumption of smartphones, wearable devices, tablets, laptops, power banks, and others; and in the automotive industry on account of the surge in demand for EVs. According to the administration’s estimates, there are 3 million electric cars in the US currently. Besides this, batteries are one of the prime components in renewable energy systems for energy storage purposes, and hence during peak energy usage, more batteries are used and recycled, boosting the battery recycling industry in the region. For instance, as per Electricity Markets and Policy Group, by the end of 2020, 550 MW of storage was paired with solar in BTM applications, of which 6% belonged to the installation of PV systems in the residential sector in the USA.

North America Battery Recycling Market Restraints and Challenges:

Safety issues can decrease the demand for battery recycling in the North American market. Collection and recycling of batteries can be hazardous due to their toxicity levels, which can impact the health of the workers and the environment.

Furthermore, a lack of consumer awareness regarding the proper disposal of batteries from basic consumer electronics can affect the growth of the battery recycling market in North America.

In addition, some recycling processes such as the smelting of batteries can produce greenhouse gas emissions, which can have a direct impact on the environment leading to air pollution, and thus a decline in the demand for battery recycling in the North American market.

North America Battery Recycling Market Opportunities:

The North America Battery Recycling Market is anticipated to deliver lucrative opportunities for businesses, which include acquisitions, partnerships, collaborations, product launches, and agreements during the forecasted period. Furthermore, increasing environmental concerns posed due to the harmful impact of batteries on the environment are predicted to develop the market for North America Battery Recycling and enhance its future growth opportunities.

NORTH AMERICA RECYCLING MARKET REPORT COVERAGE:

North America Battery Recycling Market Segmentation

North America Battery Recycling Market Segmentation: By Type

• Lithium-Ion Batteries
• Nickel Batteries
• Lead Acid Batteries
• Others

In 2022, based on market segmentation by type, lithium-ion batteries occupy the highest share of about 29% in the market. Lithium-ion batteries are widely used in all industries due to their high power density, recyclability, longevity, and high discharge rate. Since, they are increasingly used in consumer electronics such as smartphones, laptops, and also in electric vehicles, it has become easier to recycle them as they are easily available. Moreover, recycling lithium-ion batteries helps reduce their environmental impact and produce new batteries.

The nickel batteries segment is the fastest-growing segment during the forecast period. Nickel batteries have wide usage in electronics and lighting systems; hence it is easy to recycle them. Moreover, nickel batteries contain a high level of toxicity, which can pose a serious threat to the environment and human health. Due to such reasons, it is increasingly being recycled and is used for producing steel.

North America Battery Recycling Market Segmentation: By End-User Industry

• Consumer Electronics
• Automotive
• Industrial
• Energy
• Others

In 2022, based on market segmentation by end-user industry, consumer electronics occupies the highest share of about 25% in the market. Batteries are increasingly used in consumer electronics to power up smart devices such as smartphones, laptops, tablets, cameras, gaming consoles, and others, which contain toxic and harmful metals such as lithium and nickel. This makes it essential to recycle batteries and convert them into further valuable products.

The automotive industry segment is the fastest-growing segment during the forecast period. Batteries are increasingly used in electric and hybrid vehicles to power up and run them. These automotive batteries contain lithium-ion or lead-acid batteries, which if not disposed of properly can lead to increased pollution and cause harm to the health of individuals. Hence, the recycling of automotive batteries has gained momentum on account of the increase in electric vehicles in the region.

North America Battery Recycling Market Segmentation: Country Analysis:

• United States
• Canada
• Mexico

In 2022, based on market segmentation by country, the United States occupies the highest share of about 27% in the market. The United States is one of the biggest consumers of batteries, as it has a well-established automotive industry that consumes high-performance batteries such as lead-acid and lithium-ion batteries, thus contributing to the battery recycling market. Furthermore, the advanced electronics sector such as high-tech smartphones, laptops, smart lighting solutions, and others consumes battery on a large scale, leading to an increase in demand for battery recycling after the device is not in use.

Canada is the fastest-growing country during the forecast period. An increase in environmental awareness, stringent government regulations such as battery recycling programs and schemes, and the booming EV industry have contributed to the battery recycling market in the country.

COVID-19 Impact Analysis on the North American Battery Recycling Market:

The pandemic had a significant impact on the battery recycling market in North America. Due to the lockdown, battery recycling facilities, and centers faced supply chain disruptions, as sourcing end-of-life batteries from various industries such as electronics, automotive, industrial, and others was difficult, which declined the demand for battery recycling in North America.

Latest Developments:

The battery recycling market in North America witnessed an upward trend with rising environmental awareness regarding the negative impact of batteries on the environment. Moreover, continuous technological developments in battery recycling technology and the expansion of battery recycling facilities by companies are further boosting the market demand for battery recycling in the North American market. Moreover, increasing sustainability trends such as decarbonization and ethical supply chain targets, emission-reduction targets, and others; and evolving government regulations along with investment in battery recycling are developing the market for battery recycling in North America.

• In March 2023, Ascend Elements opened an electric vehicle battery recycling facility in Georgia, North America. It is a commercial-scale lithium-ion battery recycling facility and has an annual processing capacity of up to 30,000 metric tons of used lithium-ion batteries.
• In February 2022, Ford and Volvo joined Redwood Materials and launched a free EV battery recycling program in California. The plan included that Redwood Materials would work with dealers and dismantlers in California to recover end-of-life battery packs in hybrid and electric vehicles. Moreover, it stated that the company accepts both lithium-ion and nickel hydride batteries in the area, regardless of the vehicle model.

Key Players:

1. American Battery Technology Company
2. Li-Cycle Holdings Corp
3. Lithion Recycling Technologies Inc
4. RecyLi Co
5. Eco-Bat Technologies
6. Redwood Materials Inc
7. Clarios
8. Gopher Resource
9. Call2Recycle
10. Aqua Metals