Introduction to Electric Vehicle Battery Recycling Market
Electric Vehicle Batteries (EVBs) are the batteries that are used to power the propulsion system of a battery electric vehicle (BEV). EVBs are usually rechargeable batteries which are designed with a high ampere-hour capacity. EVBs are smaller in size and lighter in weight, which also helps to reduce the weight of the vehicle and thereby improve the vehicles performance.
With the decline in life of the EVBs over time, if the batteries are found not to be fit for deployment in electric vehicles, they either go for disposal, recycle or reuse. If the EVBs are not in a damaged state, they are refurbished by battery refurbishing companies and are used as second life batteries. The damaged EVBs or the EVBs which are exhausted are recycled to produce new battery pack.
Market Size and Forecast
The EVB recycling market is observing vibrant growth on account of growing electric vehicle sales and the need for reuse and recycle of difficult and expensive to source materials, such as cobalt and lithium. According to International Energy Agency (IEA), new electric car sales (both battery electric vehicle or BEV and plug-in hybrid electric vehicle or PHEV) grew from 1.890 thousand units to 1975.180 thousand units globally in-between 2005 and 2018. Additionally, electric light commercial vehicle or LCV stock grew from 0.630 thousand units in 2005 to 244.110 thousand units in 2018.
The market is anticipated to record robust CAGR throughout the forecast period, i.e. 2019-2027. The electric vehicle battery recycling market is segmented by type into lead acid, nickel metal hydride and lithium-ion batteries, out of which, lithium-ion batteries segment is anticipated to hold largest market share on account of light weight of the batteries, compact in size and flexibility, coupled with improved discharge and charge efficiency, longer life span and the ability to deep cycle while maintaining power. Furthermore, the market is also segmented by recycling process type into pyrometallurgical, hydrometallurgical and mechanical or physical recycling process, out of which, hydrometallurgical segment is anticipated to gain significant market share owing to high efficiency of the recycling process coupled with greater range and complexity of recovered materials as well as higher future economic viability.
High Cost Of Sourcing Of Highly Valuable Metals
For the manufacturing of EVBs, highly valuable elements such as cobalt, nickel and lithium are used as raw materials. These metals are produced in nations such as Cuba, Papua New Guinea, and others. Owing to challenges observed in sourcing of these metals, the price of the metals are growing tremendously at a rapid pace. According to the International Monetary Fund (IMF), the primary commodity price of Cobalt grew from 32,088.12 USD in 2009 to 72,911.24 USD in 2018. Recycling of the EVBs helps to procure these metals at a comparatively cheaper price and with less challenges, which is anticipated to drive the demand for recycling of EVBs. CLICK TO DOWNLOAD SAMPLE REPORT
Growing Demand For Increasing The Capacity Of Battery Recycling
Owing to growing environmental concerns and lowering costs of electric vehicles, there is a surge in the demand for electric vehicles (EVs) amongst consumers. The growing sales of EVs will also increase the total number of EVBs at the end of its deterioration period, which is anticipated to raise the demand for refurbishing or recycling of the total number of batteries used in the vehicles. With the age of time, it is also anticipated that EVB recycling companies will have to increase their recycling capacity owing to rise in the number of total batteries procured from the growing sales of EVs and batteries procured from second life utilization sources. All of these factors are anticipated to support the growth of the electric vehicles battery recycling market throughout the forecast period.
High Setup Cost of EVB Recycling Plant
The setup of EVB recycling plant includes higher costs of operations owing to complex processes involved in the extraction of the highly valuable elements. Moreover, lack of awareness of EVB recycling is also anticipated to act as a barrier to the growth of the electric vehicle battery recycling market.
Our in-depth analysis of the electric vehicle battery recycling market includes the following segments:
By Recycling Process Type
On the basis of regional analysis, the electric vehicle battery recycling market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Asia-Pacific is expected to hold significant market share on the back of being the leader in electric vehicle stock and being the largest exporter of lithium-ion batteries worldwide. According to the statistics by International Energy Agency (IEA), growth of electric car stock in China increased from 0.48 thousand units in 2009 and reached 2306.3 thousand units in 2018, whereas electric light commercial vehicle stock 0.25 thousand units in 2010 and reached 138.04 thousand units in 2018.
Furthermore, Europe is anticipated to gain significant market share on account of growing regulatory norms for EVBs in the region, which is inducing battery manufacturers to opt for recycling processes, instead of dumping the wastes generated from the batteries.
The electric vehicle battery recycling market is further classified on the basis of region as follows:
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