With global EV sales accelerating past 15 million units in 2024, the surge in lithium-ion battery waste is creating both an environmental challenge and an economic opportunity. By 2030, battery waste is projected to hit 1.3 million tons/year globally, with the U.S. and Europe accounting for nearly 48% of this volume. This has spurred aggressive investment in battery recycling infrastructure, with Li-Cycle (U.S.), Redwood Materials (U.S.), and ACCUREC (Germany) scaling capacity by over 5x since 2021.
Newer hydrometallurgical and direct recycling methods now offer 90–95% recovery rates for lithium, cobalt, and nickel, up from 60–70% a decade ago. Capital expenditure per unit recovered has declined by 15–18% year-over-year, bringing average project breakeven down to 7–8 years. In the EU, the updated Battery Regulation mandates a minimum of 50% recycled content in new batteries by 2030, while the U.S. Inflation Reduction Act offers up to $45/kWh in tax credits for recycled battery materials used in domestic manufacturing.
Policy support is catalyzing industrial-scale recycling hubs, particularly near EV gigafactories. In parallel, OEMs are integrating “design for disassembly” features to reduce end-of-life processing costs. The recycling value chain from collection to processing to reintegration is now seen as a critical pillar in battery supply chain security, with over $12 billion committed globally in 2023–24.
5 Key Quantitative Insights
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