Battery recycling market projected to reach US$ 91.83 billion by 2033

The global battery recycling market is projected to grow from US$ 30.91 billion in 2025 to US$ 91.83 billion by 2033, representing a compound annual growth rate of 14.58%. This growth is driven by the expansion of the electric vehicle market and the need for sustainable material recovery, including lithium, nickel, cobalt, and graphite.

However, the International Energy Agency (IEA) notes that recycling capacity currently exceeds the available material. Manufacturing scrap remains the primary input for recyclers, as most batteries installed in electric vehicles and stationary storage systems are still in service. The IEA expects retired batteries to become the dominant supply source only in the mid-2030s.

To manage this transition, the US National Institute of Standards and Technology has published a recovery model outlining the necessary steps after batteries become available, including collection, testing, and sorting. This process helps determine whether a battery should be reused for secondary applications or dismantled for material recovery.