The global battery recycling market size is estimated to grow by USD 11.34 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 11.53% during the forecast period. Widening lithium supply-demand gap is driving market growth, with a trend towards rising stewardship collaboration for battery recycling. However, lead contamination in environment poses a challenge. 

The global battery recycling market is gaining momentum due to the depletion of metal reserves and the environmental impact of discarded batteries. All stakeholders, including governments, battery manufacturers, businesses, public agencies, and consumers, must collaborate to address this issue. One such trend is stewardship collaboration, which brings these entities together to manage the end-of-life batteries. Manufacturers are required to provide convenient collection methods, such as extended producer responsibility (EPR) programs, and maintain producer funding to reduce government costs and increase the collection of recycled batteries. Companies offer prepaid shipping containers and collection boxes to local businesses for consumers to drop off their discarded batteries. Stewardship collaborations are increasingly popular in North America and Australia. 

The battery recycling market is experiencing significant growth due to increasing costs in the supply chain for essential minerals like lithium and cobalt in lithium-ion batteries used in automobiles and renewable energy industries. Technological innovations in battery recycling, such as those by Criba and LOHUM Cleantech, are reducing logistics costs and improving yield. Lithium-ion batteries in electric cars, PHEVs, and energy storage systems are driving demand. International Energy Agency forecasts a tripling of electric vehicle battery production by 2030, creating a need for effective recycling solutions. 

The battery recycling market faces several challenges in the context of evolving battery technologies for electric vehicles and renewable energy storage. EPA guidelines require strict handling of spent batteries due to hazardous materials like acids, heavy metals such as nickel, cobalt, lithium, mercury, and lead. These batteries, including lithium-ion, acid, and sodium-sulfur types, present unique challenges due to energy density, charging capabilities, and maintenance requirements. Industrialization and urbanization increase battery waste disposal, particularly from automotive and industrial sectors. Renewable energy sectors, like solar and wind power, also contribute to the growing battery waste. Regulations are essential to ensure safe and efficient battery recycling. However, a dearth of technologies and the complexity of battery chemistries pose challenges.