The global battery recycling market is on an upward trajectory, with projections estimating it will reach $19.8 billion by 2030, up from $12.8 billion in 2025. waste360.com This growth is largely fueled by the surge in electric vehicle (EV) adoption, which has led to a significant increase in end-of-life batteries requiring recycling. In the United States, over 1.2 million EVs were sold in 2024, highlighting the escalating need for efficient recycling systems. americanli-ion.com To address this demand, companies like Redwood Materials are at the forefront, recovering critical materials such as lithium, cobalt, nickel, and copper from used batteries. Their efforts not only supply essential materials for new batteries but also contribute to reducing environmental impact by minimizing the need for new mining operations. reuters.com
Technological advancements are playing a pivotal role in enhancing recycling efficiency. Innovations like hydrometallurgical and direct recycling processes have improved metal recovery rates to nearly 95%, up from 70% in 2020. kenresearch.com Additionally, the integration of artificial intelligence in sorting systems has increased processing accuracy, further boosting the viability of recycling operations. Government policies are also accelerating this progress. The Inflation Reduction Act offers tax credits up to $3,750 per recycled battery, incentivizing companies to invest in sustainable practices. americanli-ion.com These combined efforts are not only addressing the challenges posed by the growing number of end-of-life batteries but are also paving the way for a more sustainable and self-sufficient battery supply chain.