Battery Recycling Market Projected to Hit $77.1 Billion Globally by 2034

The Future of Battery Recycling: A $77.1 Billion Industry by 2034

Recent research conducted by Allied Market Research sheds light on the rapidly growing battery recycling market, projecting its value to soar from $26.9 billion in 2024 to an impressive $77.1 billion by 2034. With a robust compound annual growth rate (CAGR) of 11.2%, this expansion is primarily fueled by escalating government regulations surrounding battery disposal and recycling practices.

Regulatory Impact on Market Growth

A significant factor contributing to this upward trajectory is the increasing number of stringent regulations by governments worldwide concerning battery disposal. The rise in usage of batteries in various sectors, including electric vehicles (EVs), consumer electronics, and industrial applications, has prompted governments to enact tougher regulatory frameworks to mitigate the environmental risks associated with battery waste.

In the European Union, the Battery Directive (2006/66/EC) requires producers to take responsibility for the collection, treatment, and recycling of batteries, while the newly implemented EU Batteries Regulation (Regulation (EU) 2023/1542) further strengthens sustainability requirements across the battery lifecycle. This includes introducing mandates for battery passports and setting mandatory recycled content thresholds for critical materials such as cobalt, lithium, and nickel.

Landfilling Ban: A Game Changer

Moreover, several countries have implemented bans on landfilling certain types of batteries, recognizing the environmental hazards posed by improper disposal. The European Environment Agency reports that in 2022, Europe generated over 1.4 million tons of portable batteries, achieving nearly 50% recycling rates due to such bans and collection initiatives. Countries like Germany and Sweden have surpassed collection rates of 70%, benefiting greatly from these regulatory frameworks.

For instance, in November 2023, California reported that more than 15,000 tons of batteries were successfully diverted from landfills through dedicated collection and recycling programs.