Persistence Market Research projects the battery recycling market will grow from $7.3 billion in 2026 as EV adoption, energy storage buildout and tighter recovery rules increase volumes of spent batteries and demand for recycled materials.
The global lithium-ion battery recycling market is projected to expand from about US$7.3 billion in 2026 to US$31.8 billion by 2033, a 23.4% CAGR, according to Persistence Market Research, driven by rising electric vehicle adoption, growing energy storage deployment and stricter regulations on battery recovery and material reuse. The report said Europe held a 38% market share in 2025, while Asia Pacific was the fastest-growing region, with China, India, Japan and South Korea expanding battery manufacturing and recycling capacity. Lithium Nickel Manganese Cobalt Oxide (NMC) batteries account for about 45% of recycled volumes, while Lithium Iron Phosphate (LFP) is expected to be the fastest-growing battery chemistry segment. The release also cited Rio Tinto's 2026 integration of Arcadium Lithium, including plans to raise lithium production capacity to 200,000 metric tons a year by 2028 from at least 61,000 metric tons in 2026 and to advance direct lithium extraction technology.