Market Forecast by Countries (United States, Canada), By Source (Automotive, Non-automotive), By Battery Component (Active Material, Non-active Material), By Recycling Process (Hydrometallurgical Process, Pyrometallurgical Process, Physical/Mechanical), By Battery Chemistry (Lithium-nickel Manganese Cobalt (Li-NMC), Lithium-iron Phosphate (LFP), Lithium-manganese Oxide (LMO), Lithium-titanate Oxide (LTO), Lithium-nickel Cobalt Aluminum Oxide (NCA)) And Competitive Landscape
| Product Code: ETC4622448 | Publication Date: Jul 2023 | Updated Date: Dec 2025 | Product Type: Report | |
| Publisher: 6Wresearch | Author: Ravi Bhandari | No. of Pages: 200 | No. of Figures: 90 | No. of Tables: 300 |
According to 6Wresearch internal database and industry insights, the North America Lithium-ion Battery Recycling Market was valued at USD 1.7 billion in 2025 and is projected to reach USD 4.2 billion by 2032, indicating a compound annual growth rate (CAGR) of 14.3% during the forecast period (2026–2032).
Below mentioned are the evaluation of year-wise growth rate along with key drivers:
| Years | Est. Annual Growth (%) | Growth Drivers |
| 2021 | 5.2 | Increasing demand for electric vehicles (EVs) and the need for sustainable recycling solutions. |
| 2022 | 6.1 | Expansion of EV battery production and regulations supporting battery recycling. |
| 2023 | 8.3 | Rising awareness about the environmental impact of battery waste and the need for resource recovery. |
| 2024 | 10.5 | Stringent government regulations encouraging recycling practices for lithium-ion batteries. |
| 2025 | 12.7 | Significant advancements in recycling technologies and the growing demand for recycled battery materials. |
The North America Lithium-ion Battery Recycling Market report thoroughly covers the market by By Countries, By Source, By Battery Component, By Recycling Process, and By Battery Chemistry. The report provides an unbiased and detailed analysis of ongoing market trends, opportunities/high growth areas, and market drivers, which would help stakeholders devise and align their market strategies according to the current and future market dynamics.
| Report Name | North America Lithium-ion Battery Recycling Market |
| Forecast Period | 2026-2032 |
| Market Size | USD 4.2 billion by 2032 |
| CAGR | 14.3% |
| Growing Sector | Electric Vehicle (EV) Industry |
The North America Lithium-ion Battery Recycling Market growth has boosted in the recent years, driven by various drivers. Such as a rise in the demand for electric vehicles (EVs) and government regulations encouraging sustainable practices. The growing importance of resource recovery from used batteries is estimated to be another major growth proliferator. The market growth is estimated to surge, as the adoption of electric vehicles is increasing, boosting the requirement for efficient and sustainable recycling of lithium-ion batteries.
Below mentioned are some prominent drivers and their influence to the market dynamics:
| Drivers | Primary Segments Affected | Why it matters (evidence) |
| Increase in Electric Vehicle Adoption | Automotive Source; Battery Chemistry: Li-NMC, LFP, NCA | The rising popularity of electric vehicles increases the demand for lithium-ion batteries. |
| Government Regulations & Incentives | All Segments; Battery Components | EV Tax Credit policy in the United States and Canada’s sustainability programs drive the adoption of recycling technologies. |
| Technological Advancements in Recycling Processes | All Segments; Pyrometallurgical, Hydrometallurgical | Advances in recycling technology are improving recovery rates and making lithium-ion battery recycling more efficient. |
| Growing Environmental Awareness | All Segments; Non-automotive Source | Increasing consumer demand for environmentally friendly practices is pushing for better management of end-of-life batteries. |
| Resource Scarcity and Supply Chain Concerns | Active Material; Recycling Process | The growing concerns about the supply of critical raw materials drive the need for their recovery. |
The North America Lithium-ion Battery Recycling Market size is projected to grow at a CAGR of 14.3% during the forecast period (2026–2032). Here are some significant drivers proliferating the growth of the market, including the rise in electric vehicle adoption, and governmental regulations supporting sustainability. In addition to this, advancements in recycling technologies are estimated to be another major growth accelerator. Additionally, the need for lithium-ion batteries is increasing with the growing demand for electric vehicles (EVs) and renewable energy storage solutions. Also, the demand for efficient recycling processes is on the rise, as the focus on sustainability and the need to reduce reliance on raw material is rising. The North America Lithium-ion Battery Recycling Market growth is estimated to surge, driven by the rising advancements in recycling technologies that enhance the efficiency and cost-effectiveness of lithium-ion battery recovery.
Below mentioned are some major restraints and their influence to the market dynamics:
| Restraints | Primary Segments Affected | What this means (evidence) |
| High Cost of Recycling Technologies | Hydrometallurgical, Pyrometallurgical Processes | High capital costs associated with setting up advanced recycling plants can limit market growth, particularly for smaller players. |
| Lack of Standardized Regulations | All Segments | The absence of consistent standards for battery recycling processes may create challenges in streamlining recycling efforts. |
| Limited Recycling Infrastructure | All Segments | The insufficient number of recycling facilities and the complex logistics of battery collection limit recycling rates. |
| Toxicity and Safety Issues | Non-active Material; Active Material | Safety concerns regarding the handling and disposal of hazardous materials from used batteries can hinder recycling operations. |
| Competition from Alternative Recycling Methods | Non-active Material; Automotive Source | New recycling methods, such as direct recycling technologies, are emerging as potential competitors to traditional methods. |
On the other hand, the market comprises some challenges that need to be addressed. These challenges are the high cost of recycling technologies and limited infrastructure. Safety concerns during the recycling process are another major challenge. Additionally, there can be inefficiencies and hinderances to the market growth due to the shortage of a standardized regulatory framework across the region.
Several prominent trends reshaping the market growth include:
Some prominent investment opportunities in the market include:
Some leading players operating in the market include:
| Company Name | Li-Cycle Corp. |
|---|---|
| Established Year | 2016 |
| Headquarters | Toronto, Canada |
| Official Website | Click Here |
Li-Cycle is a leading player in lithium-ion battery recycling, focusing on sustainable and efficient recycling methods to recover critical materials from used batteries.
| Company Name | Redwood Materials |
|---|---|
| Established Year | 2017 |
| Headquarters | Carson City, Nevada, USA |
| Official Website | Click Here |
Redwood Materials specializes in recycling lithium-ion batteries and recovering precious metals like lithium, cobalt, and nickel for use in new batteries.
| Company Name | Umicore |
|---|---|
| Established Year | 1805 |
| Headquarters | Brussels, Belgium |
| Official Website | Click Here |
Umicore is a global leader in materials technology, providing advanced battery recycling solutions and focusing on sustainable practices in the automotive and electronics sectors.
| Company Name | American Battery Technology Company |
|---|---|
| Established Year | 2011 |
| Headquarters | Reno, Nevada, USA |
| Official Website | Click Here |
American Battery Technology Company is focused on the development of innovative recycling technologies to recover critical materials from lithium-ion batteries and support a circular economy.
| Company Name | Sims Lifecycle Services |
|---|---|
| Established Year | 2004 |
| Headquarters | Chicago, Illinois, USA |
| Official Website | Click Here |
Sims Lifecycle Services provides advanced recycling solutions for lithium-ion batteries, focusing on electronics and other critical industries, helping to reduce environmental impact.
In North America, government initiatives have been introduced encouraging battery recycling. For instance, the "EV Battery Recycling Act” supports EV adoption and battery recycling with the help of several policies. Along with that, the Canadian government has also launched the "Canada-wide Strategy for the Sustainable Management of Used Tires," which is extending to include battery recycling initiatives. Additionally, regulations, such as the U.S. EPA’s solid waste disposal rules, mandate that producers take responsibility for end-of-life products and promote better recycling practices.
The North America Lithium-ion Battery Recycling Market share is projected to increase in the coming years, underpinned by various future and ongoing trends. Some of these are the increase in electric vehicle adoption and government regulations encouraging battery recycling. Here are other significant factors that will boost the growth of the industry, one of these is technological advancements in recycling processes and another one is the growing need to recover valuable materials from spent batteries.
The report offers a comprehensive study of the following market segments and their leading categories.
According to Mansi Ahuja, Senior Research Analyst at 6Wresearch, the Automotive Source segment holds the largest market share in the North American Lithium-ion Battery Recycling Market. This is driven by the growing adoption of electric vehicles (EVs) and the increasing number of EV batteries reaching the end of their lifecycle, creating significant recycling opportunities.
The Hydrometallurgical Process dominates the market, primarily driven by its ability to efficiently recover valuable metals like lithium, cobalt, and nickel from used lithium-ion batteries.
The report offers a comprehensive study of the subsequent market segments:
| 1 Executive Summary |
| 2 Introduction |
| 2.1 Key Highlights of the Report |
| 2.2 Report Description |
| 2.3 Market Scope & Segmentation |
| 2.4 Research Methodology |
| 2.5 Assumptions |
| 3 North America Lithium-ion Battery Recycling Market Overview |
| 3.1 North America Regional Macro Economic Indicators |
| 3.2 North America Lithium-ion Battery Recycling Market Revenues & Volume, 2022 & 2032F |
| 3.3 North America Lithium-ion Battery Recycling Market - Industry Life Cycle |
| 3.4 North America Lithium-ion Battery Recycling Market - Porter's Five Forces |
| 3.5 North America Lithium-ion Battery Recycling Market Revenues & Volume Share, By Countries, 2022 & 2032F |
| 3.6 North America Lithium-ion Battery Recycling Market Revenues & Volume Share, By Source, 2022 & 2032F |
| 3.7 North America Lithium-ion Battery Recycling Market Revenues & Volume Share, By Battery Component, 2022 & 2032F |
| 3.8 North America Lithium-ion Battery Recycling Market Revenues & Volume Share, By Recycling Process, 2022 & 2032F |
| 3.9 North America Lithium-ion Battery Recycling Market Revenues & Volume Share, By Battery Chemistry, 2022 & 2032F |
| 4 North America Lithium-ion Battery Recycling Market Dynamics |
| 4.1 Impact Analysis |
| 4.2 Market Drivers |
| 4.3 Market Restraints |
| 5 North America Lithium-ion Battery Recycling Market Trends |
| 6 North America Lithium-ion Battery Recycling Market, 2022 - 2032 |
| 6.1 North America Lithium-ion Battery Recycling Market, Revenues & Volume, By Source, 2022 - 2032 |
| 6.2 North America Lithium-ion Battery Recycling Market, Revenues & Volume, By Battery Component, 2022 - 2032 |
| 6.3 North America Lithium-ion Battery Recycling Market, Revenues & Volume, By Recycling Process, 2022 - 2032 |
| 6.4 North America Lithium-ion Battery Recycling Market, Revenues & Volume, By Battery Chemistry, 2022 - 2032 |
| 7 United States Lithium-ion Battery Recycling Market, 2022 - 2032 |
| 7.1 United States Lithium-ion Battery Recycling Market, Revenues & Volume, By Source, 2022 - 2032 |
| 7.2 United States Lithium-ion Battery Recycling Market, Revenues & Volume, By Battery Component, 2022 - 2032 |
| 7.3 United States Lithium-ion Battery Recycling Market, Revenues & Volume, By Recycling Process, 2022 - 2032 |
| 7.4 United States Lithium-ion Battery Recycling Market, Revenues & Volume, By Battery Chemistry, 2022 - 2032 |
| 8 Canada Lithium-ion Battery Recycling Market, 2022 - 2032 |
| 8.1 Canada Lithium-ion Battery Recycling Market, Revenues & Volume, By Source, 2022 - 2032 |
| 8.2 Canada Lithium-ion Battery Recycling Market, Revenues & Volume, By Battery Component, 2022 - 2032 |
| 8.3 Canada Lithium-ion Battery Recycling Market, Revenues & Volume, By Recycling Process, 2022 - 2032 |
| 8.4 Canada Lithium-ion Battery Recycling Market, Revenues & Volume, By Battery Chemistry, 2022 - 2032 |
| 9 North America Lithium-ion Battery Recycling Market Key Performance Indicators |
| 10 North America Lithium-ion Battery Recycling Market - Opportunity Assessment |
| 10.1 North America Lithium-ion Battery Recycling Market Opportunity Assessment, By Countries, 2022 & 2032F |
| 10.2 North America Lithium-ion Battery Recycling Market Opportunity Assessment, By Source, 2022 & 2032F |
| 10.3 North America Lithium-ion Battery Recycling Market Opportunity Assessment, By Battery Component, 2022 & 2032F |
| 10.4 North America Lithium-ion Battery Recycling Market Opportunity Assessment, By Recycling Process, 2022 & 2032F |
| 10.5 North America Lithium-ion Battery Recycling Market Opportunity Assessment, By Battery Chemistry, 2022 & 2032F |
| 11 North America Lithium-ion Battery Recycling Market - Competitive Landscape |
| 11.1 North America Lithium-ion Battery Recycling Market Revenue Share, By Companies, 2022-2032 |
| 11.2 North America Lithium-ion Battery Recycling Market Competitive Benchmarking, By Operating and Technical Parameters |
| 12 Company Profiles |
| 13 Recommendations |
| 14 Disclaimer |