Global Battery Recycling Market to Exceed $200 Billion by 2040, 26 Times the Current Size

Korea International Trade Association Battery Report
Annual Growth of 17%, Reaching 200 Billion USD by 2040

The global battery recycling market size is expected to grow 26 times from $8 billion last year to $208.9 billion by 2040. The Korea International Trade Association (KITA) released a report titled "Raw Material Procurement Plan for Fostering the Electric Vehicle Battery Recycling Industry in Korea" on the 25th, citing projections from energy-focused market research firm SNE Research.

[Image source=Yonhap News]

According to the report, the global battery recycling market size is expected to more than double from $8 billion last year to $20.8 billion by 2025, and then grow at an average annual rate of 17%, reaching $208.9 billion by 2040.

The volume of used batteries is also rapidly increasing. It is projected to rise from 20 gigawatt-hours (GWh) last year to 44 GWh in 2025, then increase at an average annual rate of 33%, reaching 3,339 GWh by 2040. Used batteries refer to batteries whose primary lifespan as electric vehicle batteries has ended. These can be classified into remanufactured, reused, and recycled batteries.

Korea's electric vehicle battery recycling market is also expected to grow rapidly. The annual number of newly registered electric vehicles last year was 162,987, with a cumulative total exceeding 400,000 units by the end of last year. The volume of used electric vehicle batteries is projected to steadily increase from 440 units in 2021, to 2,355 units in 2023, 8,321 units in 2025, and 78,981 units in 2029. It is estimated that more than 100,000 used electric vehicle batteries will be generated annually after 2030.

KITA suggested, "For the electric vehicle battery recycling industry to be economically viable and grow, it is essential to smoothly secure raw materials for battery recycling and establish a systematic electric vehicle battery collection system." Kim Hee-young, a research fellow at KITA's Supply Chain Analysis Team, stated, "Korea does not have a systematic collection system for used electric vehicle batteries, and there is no system for the collection and management of privately owned batteries. The stages of battery collection registration, transportation, performance inspection, and price assessment need to be systematized."

This content was produced with the assistance of AI translation services.