EU battery recycling on the up

Battery Recycling Is The Technique Of Reusing And Reprocessing Batteries With The Goal Of Minimising The Number Of Batteries Disposed Of As Material Waste

The Europe battery recycling market is expected to record a positive compound annual growth rate of approximately 40 per cent during the forecast period (2022-2027) and reach approximately US$3.5billion by 2027, primarily driven by the depleting availability of fresh raw materials for the production of batteries which is increasingly growing in demand in both household electronics as well as industrial use.

The ongoing Covid-19 pandemic has benefited the battery recycling industry as the demand for electric vehicles (EV) in the region experienced a growing trend with a remarkable rise in sales in the year 2020.

Augmenting demand from industries for batteries has in turn posed increasing pressure on raw material production. It is directly affecting the ratio proportion of the ability to produce raw materials like lithium to meet the demand. This has focused the attention on recycling processes to meet the rise of battery requirements in industries.

Lithium-ion batteries accounted for about 30 per cent of the market in 2021, which is expected to grow at a high rate of above 40 per cent in the coming years owing to the increase in demand from the automotive industry and the trend towards electrification.

Furthermore, due to growing environmental problems, such as contamination of the soil, water, air, and rise in global warming, the European Union is pushing for the construction of battery recycling infrastructure. All these factors are likely to enhance the battery recycling market’s trajectory for growth.

However, due to the market’s uncertainty and immaturity, there are a few barriers. For example, most of the electric vehicles in the market have yet not reached the end-of-life stage which raises numerous questions related to battery lifespans, collection, condition, and compatibility with recycling processes.

According to the International Council on Clean Transportation, the European electric vehicle (EV) market experienced remarkable growth in 2020, posting a 143 per cent increase in sales of passenger electric cars from 2019. The sales in 2020 made Europe the biggest EV market globally, surpassing China and the US.

Although sales of all new cars in Europe decreased by 20 per cent, the increase in EV sales boosted the EV share to 11 per cent. Both battery electric in terms of market share but also in overall terms. In Germany, sales of PHEV vehicles from January to June increased from 47,584 in 2019 to 93,848 in 2020. Similar trends were observed across other countries in Europe.