United States Battery Recycling Market

United States Battery Recycling Market Size and Share:

The United States battery recycling market size was valued at USD 4.5 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 7.9 Billion by 2033, exhibiting a CAGR of 6.40% from 2025-2033. The rising demand for sustainable waste management, increasing adoption of electric vehicles (EVs), growing environmental regulations, and resource conservation efforts are some factors fueling the market demand in this region.

The United States battery recycling market is significantly expanding due to the increased regulation of environmental laws in the production of batteries to curb hazardous waste. In line with this, the state regulations that aim at pollution of landfills and the presence of toxic metals promote the development of recycling lithium-ion and lead-acid batteries, thereby aiding the market growth. The battery recycling process of EVs is acting as another growth-inducing factor. This process contributes to the reduction of resource consumption and associated costs arising from the recovery of metals such as cobalt, nickel, and lithium, further driving the market demand. For instance, in October 2024, the U.S. Department of Energy (DOE) announced an investment of US$ 44.8 million from the Bipartisan Infrastructure Law (BIL) to fund eight projects that will ensure the recycling cost reduction of the battery component and increase EV affordability in the long-term. Moreover, increasing incentive programs for recycling growth by the federal and state funding levels to improve the industry base and involvement, is impelling the market growth.

Concurrent with this, the rising number of electronic device users has led to the generation of batteries that need disposal and recycling, thus creating a positive outlook for market expansion. In addition, ongoing technology advancements, such as hydrometallurgical and pyrometallurgical processes are increasing the effectiveness of battery recycling, ensuring economical material recovery, thus supporting the market growth. Besides this, several companies are setting sustainable objectives along with cooperation between battery producers and recycling industries, promoting the growth of a circular economy for batteries, and aiding in the market expansion. For instance, Tesla co-founder J.B. Straubel, founded Redwood Materials, which secured a $2 billion conditional loan from the DOE's Advanced Technology Vehicles Manufacturing Loan Program. This will scale the domestic battery cell production in the US, driving the market forward. Furthermore, the rising awareness campaigns and extended producer responsibility (EPR) are impacting the consumers and businesses to initiate battery recycling, thereby providing an impetus to the market.

United States Battery Recycling Market Trends:

Adoption of advanced recycling technologies

The rising adoption of new technologies in battery recycling including hydrometallurgical is significantly contributing to the market expansion. These technologies increase the extraction efficiency of valuable materials such as lithium, nickel, and cobalt, using minimal energy, thereby impelling the market growth. Moreover, several firms are seeking solutions that are reproducible and cost-effective, to align with the increasing need for recycled battery materials such as electric cars and consumer electronics, thus boosting the market growth. For example, in July 2024, Novocycle Technologies announced significant developments in battery recycling technology, introducing a new industry standard in sustainability. Furthermore, these technological advancement supports sustainability objectives and improves competitiveness, propelling the market forward.

Growth of EV battery recycling

The market is experiencing a rapid demand for new EVs, which is increasing the need for recycling end-of-life batteries. These batteries can be recycled, which promotes the production of new batteries, through the mining of raw materials, further supporting the market growth. Concurrently, manufacturers of automobiles and recycling companies are collaborating to create recycling systems that are regulatory compliant, fueling the market demand. For instance, automakers like BMW have partnered with recycling firms such as Redwood Materials to establish closed-loop systems for EV battery recycling, enhancing material recovery and sustainability. Apart from this, increasing government efforts and rising consumer consciousness about EV battery recycling are acting as significant growth-inducing factors for the market.

Focus on circular economy practices

The emerging concept of a circular economy is driving the United States of battery recycling market because of the emphasis on material re-circulation, and reduction of the amount of material in the landfill. For example, The U.S. DOE outlined strategies to integrate battery recycling into a circular economy framework, aiming to reduce reliance on new raw materials and minimize environmental impact. Additionally, supply chain pioneers are using closed looping to incorporate recycling into battery supply systems, enhancing the resource utilization and consumption of resources, and aiding the market growth. Besides this, the EPR laws are encouraging the development of improved collection, sorting, and recycling methods, due to the corporate sustainability programs, providing an impetus to the market. Furthermore, this trend provides the maximum lifecycle utility of batteries and aligns with the legislative and consumer requirements for environmentally friendly products, thereby contributing to the market expansion.

United States Battery Recycling Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the United States battery recycling market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type, source, and end use.

Analysis by Type:

• Lead-acid Batteries 
• Nickel-based Batteries
• Lithium-based Batteries
• Others
   

Lead-acid batteries are significantly driving the market demand due to frequent replacements in the automotive and industrial sectors. They offer high reliability, lower costs, and provide an uninterruptable power supply during blackouts for networks that use old machines. Furthermore, they can be recycled and are capable of meeting environmental agendas, which is supporting the market growth.

In addition, through extensive use of power tools and medical devices, nickel-based batteries are preferred due to their durability in high-use applications and resistance to high and low temperatures. Moreover, with their smaller maintenance requirements and predictable efficiency, they are suitable for essential data center applications in areas with unstable electricity supply and severe weather conditions, which is propelling the market forward.

Besides this, lithium-based batteries are fueling the demand driven by the increasing applications in electronics and energy storage. These batteries transform the data center energy storage with high energy density, lightweight, and modularity, by providing short response times, less space requirements, and optimizing efficiency and super mobility, thereby aiding market growth.

Analysis by Source:

• Industrial
• Automotive
• Consumer Products
• Electronic Appliances
• Others
   

The rising disposal of batteries from energy storage systems and manufacturing equipment, in industrial is impelling the battery recycling demand. These large-format batteries are crucial to massive data centers as they offer maximum power and reliability to work for extended hours, strengthening the market share.

Additionally, the repurposed EV and hybrid vehicle batteries are significantly contributing to the recycling needs for material recovery. They are increasingly becoming popular as green energy storage for data centers, offering high energetic value and cost-effectiveness which makes them environmentally friendly products, thus boosting the market demand.

Furthermore, the high turnover of small batteries in devices like toys and wearables creates a steady recycling need, which is acting as another growth-inducing factor. Compact batteries from consumer electronics are also improving the performance of micro-and-edge data centers. This promotes the utilization of decentralized infrastructure for growing localized data processing requirements, driving the market forward.

Meanwhile, the growing obsolescence of high-capacity batteries in home appliances fosters recycling efforts. These systems make deployment easy to accommodate in facilities and are in a position to meet fluctuating power demands and other challenges in various sites, which is aiding the market growth.

Analysis by End Use:

• Reuse
• Repackaging
• Extraction
• Others
   

Reuse is emerging as an end-use segment, as they are increasingly used in renewable energy and backup power systems, which is significantly surging the market demand. These reused batteries avoid creating electrical waste, conform to environmental standards of responsibility, and make the method functional when there is a necessity for backup or secondary energy storage requirements, providing an impetus to the market.

Additionally, repackaged batteries are applicable in grid storage, and secondary power solutions, that are repumped in the data centers, as the process is cost-effective and elongates the battery life. These modules are intended to meet moderate levels of energy requirements, by providing a stable solution that is capable of addressing the sustainability concerns in modern energy systems, driving the market forward.

Besides this, the rising focus on extracting critical raw materials like lithium and cobalt for manufacturing new batteries is supporting the development of sustainable and novel generation battery systems. It contributes to resource independence, innovation, and the minimization of the environmental impacts of battery production and disposal by recycling valuable materials such as nickel, contributing to the market expansion.

Regional Analysis:

• Northeast
• Midwest
• South
• West
   

In the Northeast, the demand for battery recycling is witnessing robust growth, primarily due to the stringent environmental policies, well-established recycling networks, and the growing awareness of sustainable practices among various industries and consumers in the urbanized areas.

The industrial manufacturing hubs in the Midwest are generating substantial battery waste, which is creating a high demand for battery recycling. Besides this. The automotive production and the increasing adoption of renewable energy systems are also contributing to regional recycling efforts, thus supporting the market growth.

In the South region, the growing adoption of EVs, consumer electronics usage, and the expanding infrastructure projects, along with supportive policies encouraging sustainable waste management practices are significantly boosting the demand for battery recycling.

In the West, the increasing emphasis on sustainability along with robust initiatives in the renewable energy and EV markets is driving the market demand. Apart from this, the developing state policies and eco-conscious communities are propelling the market forward.

Competitive Landscape:

The structure of the battery recycling market in the United States involves a blend of recyclers and new entrants, start-ups, and joint industry ventures. The leading market players are initiating efforts, to enhance the recycling rates aligning with the automotive, industrial, and consumer electronics markets. Moreover, small players are deploying efficient and cost-effective strategies to address the diversity of consumers. In addition, the increasing federal and state incentives are fostering strong investments in infrastructure and innovation. This is promoting several firms to adopt sustainable environmental measures and policies to meet the rising standards of the sustainable environmental sector.

The report provides a comprehensive analysis of the competitive landscape in the United States battery recycling market with detailed profiles of all major companies.

Latest News and Developments:

• In November 2024, the U.S. DOE (Department of Energy) sanctioned a loan of $475 million to Li-Cycle, to build a battery processing facility in New York, significantly contributing to the domestic supply of critical minerals.

United States Battery Recycling Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the United States battery recycling market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the United States battery recycling market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the United States battery recycling industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.