The global EV battery recycling market is forecast to surge from $0.57 billion in 2024 to $24.5 billion by 2035, growing at a compound annual rate of 40.8%, according to Vantage Market Research.
“EV battery recycling is no longer just an environmental compliance activity – it is becoming a strategic pillar of the sustainable mobility and energy economy,” said Nneha Rathod Godbole, CEO of Vantage Market Research.
Asia Pacific leads the market, driven by China’s large-scale EV production and state-backed recycling mandates. Europe is the fastest-growing region, propelled by EU regulations and closed-loop supply chain initiatives. North America is scaling rapidly through Inflation Reduction Act incentives and OEM–recycler partnerships.
Hydrometallurgical processes are gaining traction for their high recovery rates and lower environmental footprint, while direct recycling technologies are emerging as cost-efficient alternatives. Lithium-ion batteries dominate the recycling feedstock, with passenger EVs contributing the largest share.
Closed-loop collaborations – such as Tesla–Redwood, Ford–Li-Cycle, and Volkswagen–Umicore – are reshaping supply chains and positioning early adopters for ESG and cost leadership. As EV adoption accelerates, recycling is set to become a profit centre, not just a compliance measure.
