Electric vehicle battery recycling capacity 2023, by country
As of December 2023, China was by far the global leader in terms of battery recycling capacity, with more than 500,000 metric tons. The U.S. and Europe trailed behind with around 200,000 metric tons of capacity each.
The potential of battery recycling
As of 2020, there were about 200,000 metric tons of battery material available for recycling worldwide. With EV sales set to continue soaring in the coming decades, and batteries currently on the market reaching the end of their lifetime, the amount of battery material available for recycling is expected to grow seven-fold by 2030. By 2040, more than seven million tons are expected to be in the market. Global revenue opportunities in battery reuse and recycling were forecast at 13 billion U.S. dollars in 2030.
Legislation driving capacity growth
Both the EU and the U.S. have been striving to bridge the recycling capacity gap between themselves and China. Recent legislation in both regions is expected to boost recycling capacity. The EU’s new regulatory framework on batteries established a compulsory minimum level of recycled materials to be included in batteries, as well as recycling and recovery targets to be fulfilled in the upcoming years. Meanwhile, in the United States, subsidies for battery recycling are prescribed within the Inflation Reduction Act.
