Lithium-ion battery recycling market to reach $38.21 billion by 2030

By AI, Created 12:56 PM UTC, May 29, 2026, /AGP/ – A new Allied Market Research report says the global lithium-ion battery recycling market will jump from $1.33 billion in 2020 to $38.21 billion by 2030, fueled by electric vehicle growth, electronics waste and tighter environmental rules. Europe led the market in 2020, while Asia-Pacific is expected to grow fastest through 2030.

Why it matters: - The lithium-ion battery recycling market is moving from niche waste handling to a core part of the battery supply chain. - Recycling helps recover lithium, cobalt, nickel, manganese and aluminum from end-of-life batteries. - The process can reduce landfill pollution, lower reliance on mining and support closed-loop battery manufacturing. - Allied Market Research projects the market will grow from $1.33 billion in 2020 to $38.21 billion by 2030, a 36.0% compound annual growth rate.

What happened: - Allied Market Research published a report on the global lithium-ion battery recycling market on May 29, 2026. - The report links growth to electric vehicle adoption, higher use of portable electronics and rising environmental concern over battery disposal. - The report says electric mobility, battery waste and sustainability policy are accelerating demand for recycling systems. - Download PDF brochure

The details: - Lithium-ion batteries are used in smartphones, laptops, electric vehicles, industrial equipment, renewable energy storage systems and consumer devices. - Used batteries can leak hazardous materials if they end up in landfills without treatment. - Governments are pushing recycling through subsidies, tax benefits, emission rules and extended producer responsibility programs. - Rising prices for lithium, cobalt and nickel are making recovery more economically attractive. - Companies are investing in patented recycling methods and other advanced technologies to improve material recovery. - The report says the hydrometallurgical process held the largest share in 2020 and is projected to grow at a 39.7% CAGR through 2030. - Hydrometallurgical recycling uses aqueous solutions and chemical processes to recover metals with lower energy use and better waste control than traditional pyrometallurgical methods.

Between the lines: - The market’s growth is being driven by both regulation and economics, which makes recycling less dependent on policy alone. - Higher EV sales should create more battery waste, but also more incentive for automakers and recyclers to build closed-loop supply chains. - The shift toward second-life battery use suggests recyclers may increasingly serve energy storage markets, not just disposal needs. - The report frames battery recycling as part of broader carbon-neutrality and circular-economy strategies, not just waste management.

What’s next: - The electric vehicle segment is expected to grow the fastest through 2030, with a projected 46.1% CAGR. - Automotive manufacturers are likely to expand partnerships with recyclers as EV batteries reach end of life. - Governments and private companies are expected to keep investing in recycling infrastructure, automation and material recovery technologies. - Europe is expected to remain a major market because of strict rules and strong EV adoption, while Asia-Pacific is projected to post the fastest CAGR at 40.8%. - The report expects continued growth in non-automotive battery reuse for consumer electronics and energy storage.

The bottom line: - Battery recycling is becoming a high-growth industry because the world is producing more lithium-ion batteries and can no longer afford to waste the metals inside them.