Asia Pacific Lithium-Ion Battery Recycling Market Size & Share 2025 - 2034

Asia Pacific Lithium-Ion Battery Recycling Market Size

The Asia Pacific lithium-ion battery recycling market was valued at USD 2.3 billion in 2024 and is estimated to grow at a CAGR of 20.7 % by 2034. The growing shortage of raw materials for battery production is expected to drive demand for recycling. As lithium, cobalt, and nickel become increasingly scarce, recycling offers a sustainable solution to secure these materials. This shortage will force industries to invest in increased lithium-ion battery recycling, enabling market growth across the industry.

Growing regulatory focus on battery waste management will favor the adoption of lithium-ion battery recycling units. India's Ministry of Environment, Forest and Climate Change notified the Battery Waste Management (BWM) Rules in August 2022 to attain 70% recycling efficiency in lithium-ion batteries in 2026–27 and 90% in 2029–30. The rules also mandate material recovery on a must basis, strengthening end-of-life battery management systems and favoring industry growth.
 

The increasing demand for energy storage solutions from renewable energy sources is expected to drive the lithium-ion battery recycling market. As the use of renewable energy sources such as solar and wind energy increases, there is an increasing need for efficient energy storage mechanisms. This trend is set to generate a large volume of used lithium-ion batteries, boosting the demand for recycling solutions to recover valuable materials and support sustainable energy systems.
 

Expanding electric vehicle deployment across Asia Pacific is set to influence the volume of spent lithium-ion batteries. In January 2024, China’s Ministry of Public Security reported over 20.41 million new energy vehicles registered in the country, an increase of 41.4% from the previous year, substantially increasing the flow of used EV batteries requiring recycling, thereby fostering product demand.
 

The rising focus on reducing environmental impact and carbon emissions is expected to significantly boost the recycling market. With governments and industries striving to meet sustainability goals, there is a growing push for recycling technologies that minimize waste and conserve resources. This shift towards more eco-friendly practices will contribute to the market's expansion, as efficient battery recycling solutions are essential for reducing the environmental footprint of discarded batteries.
 

Recent tariff measures introduced during the Trump administration are expected to have mixed effects on the Asia Pacific lithium-ion battery recycling market. While higher tariffs on imported raw materials and battery components could slightly increase costs for recycling operations, the growing demand for recycled materials may drive innovation and efficiency in local supply chains. Moreover, the push for self-sufficiency in critical battery materials could encourage investment in regional recycling infrastructure, ultimately fostering long-term market growth.
 

Asia Pacific Lithium-Ion Battery Recycling Market Trends

• Expansion of large-scale recycling facilities is expected to enhance processing capacities. In December 2023, China’s GEM announced a USD 239 million investment in a new recycling facility in Yibin. The facility will process 100,000 tons annually, focusing on decommissioned power batteries and lithium iron phosphate (LFP) materials. Additionally, this expansion is anticipated to foster regional recycling capabilities, contributing to market growth.
   
• The shift towards urban mining is expected to boost the demand for lithium-ion battery recycling. As the depletion of natural resources increases, urban mining, which involves extracting valuable materials from discarded batteries, is becoming a viable alternative. This approach is gaining traction, with more focus on recycling e-waste, and is anticipated to play a key role in addressing supply shortages of critical battery materials in the region.
   
• Advancements in recycling technologies are expected to significantly improve material recovery efficiency, supporting market growth. In December 2024, BatX Energies inaugurated its HUB-1 lithium-ion battery recycling facility in Uttar Pradesh following a successful 21-day pilot program. The plant employs a proprietary hydrometallurgical process to recover high-purity lithium, cobalt, nickel, and manganese. This innovation is set to accelerate the shift toward sustainable recycling practices, driving further expansion of the sector.
   
• The rise of closed-loop supply chains in the battery industry will support the industry’s expansion. Manufacturers are increasingly focusing on integrating battery recycling within their production processes, allowing for the reuse of extracted materials in new batteries. This trend towards closed-loop systems not only ensures a sustainable supply of critical materials but also reduces reliance on raw material imports, further driving market growth in the region.
   

Asia Pacific Lithium-Ion Battery Recycling Market Analysis

• The Asia Pacific market for lithium-ion battery recycling was valued at USD 0.9 billion, USD 1.4 billion, and USD 2.3 billion in 2022, 2023, and 2024, respectively. Based on process, the industry is segmented into pyrometallurgical, hydrometallurgical, and physical/mechanical categories.
   
• The hydrometallurgical industry is projected to grow at a rate of more than 20.7% between 2025 and 2034, driven by the growing public-private partnerships for green recycling centers. In March 2025, Swachcha Urja Nirman LLP signed a 10-year agreement with CMET to set up a 1-ton-per-day lithium-ion battery recycling plant based on hydrometallurgy at an investment of less than USD 1 million. The alliance is anticipated to develop an efficient and cost-effective recycling process deployment across the region.
   
• The pyrometallurgical process segment is estimated to reach more than USD 3.7 billion by 2034, due to its ability to recover precious metals such as cobalt, nickel, and copper efficiently. This process is utilized in high amounts due to its high capacity for recycling large volumes of battery waste. The technologies deployed to increase energy efficiency and reduce emissions during the pyrometallurgical process are set to fuel market growth in the coming years.
   
• The physical/mechanical segment is likely to grow at a CAGR of more than 18.2% from 2025 to 2034 based on its cost-effectiveness and negligible environmental impact. In September 2023, PURE EV received certification for lithium-ion battery recycling under India’s BWM Rules. The company plans to introduce a buyback program for batteries used for 30,000–40,000 km, refurbishing them through mechanical processes for use in industrial and rural energy storage. Additionally, the rising demand for second-life battery applications is expected to further accelerate the adoption of this recycling approach.

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• Based on the source, the market is segmented into automotive and non-automotive segments. The automotive industry held a market share of 75.9% in 2024, led by the growing adoption of circular economy trends among OEM operations. Volvo Cars and CATL entered into a strategic cooperation agreement in April 2024 for recycling production scrap and end-of-life EV batteries. Volvo-approved suppliers will disassemble these batteries to recover more than 90% of metals such as nickel, cobalt, and lithium. Further, growing OEM investment in battery traceability will drive market growth.
   
• The non-automotive segment will grow at a CAGR of more than 20.8% between 2025 and 2034, fueled by the increasing adoption of lithium-ion batteries in consumer electronics and energy storage systems. The increasing demand for efficient recycling processes to handle battery waste from these applications is anticipated to propel market growth. In addition, the evolution of recycling technologies is enhancing the recovery rates of precious materials, thereby fueling the growth of the segment.

• The China lithium-ion battery recycling market was valued at USD 0.5 billion, 0.7 billion, and 1.2 billion in 2022, 2023, and 2024, respectively, due to escalating EV adoption, strict environmental norms, and rising investments in recycling infrastructure. In June 2024, Envision Greenwise Holdings Limited began building Hong Kong's first EV battery processing plant with AI-driven automated lines across 9,420 square meters to foster circular development. Additionally, advancements in battery management technologies will further stimulate market growth.
   
• The Japanese market for recycling lithium-ion batteries is expected to cross over USD 1.2 billion by 2034 based on innovation in membrane-based recovery systems. In March 2024, Toray Industries developed a nanofiltration membrane using water purification technology that recycles over 80% of lithium and other metals from used batteries and halves CO₂ emissions compared to mining. Additionally, the new Japanese policy for mineral independence will also drive localized recycling facilities.
   
• The South Korea lithium-ion battery recycling market will expand at more than 20.2% CAGR from 2025 to 2034, due to the increase in urbanization and demand for energy storage facilities. Besides that, the concern of government towards waste management policies and increased recycling regulations will also benefit the industry growth. Moreover, more investments in R&D for proper battery recovery will also support industry growth.
   

Asia Pacific Lithium-Ion Battery Recycling Market Share

• The top 4 players, Umicore, Glencore, Ganfeng, and Li-cycle, account for over 40.2% of the lithium-ion battery recycling market in the Asia Pacific region. They are achieving this by developing recycling technologies through strategic associations and partnerships aimed at enhancing recovery efficiency and sustainability. The focus remains on expanding capacity to manage increasing volumes of spent batteries while aligning with regional environmental regulations.
   
• Market leaders are expanding recycling facilities across the region to take advantage of rising demand for raw material as well as local regulatory needs. This includes the new buildings of recycling facilities and retrofitting existing facilities for improved material recovery.
   
• Key players are heavily investing in research and development to develop advanced recycling technology, with a focus on increasing the cell purity of recovered metals, along with reducing energy consumption. Such technologies are anticipated to empower higher demand for recycled products employed in the production of electric vehicles and other sectors.
   

Asia Pacific Lithium-Ion Battery Recycling Market Companies

• Tata Chemicals Limited recorded revenue of USD 1.8 billion in 2024. It operates in various business sectors, including recycling lithium-ion batteries, where it contributes to the circular economy by embracing sustainable methods and innovative approaches. Tata Chemicals is also involved in expanding its international presence and making production processes more efficient to meet the growing need for sustainable and energy-efficient materials for the business.
   
• Ganfeng Lithium Group Co., Ltd. earned a revenue of USD 2.6 billion in 2024. Ganfeng Lithium owns the recycling business of lithium-ion battery in the Asia Pacific region, focusing on the use of sustainable resources and advanced recycling technology. Ganfeng Lithium is expanding its business continuously to meet the rising demands for electric vehicles and energy storage products, reaffirming its commitment to environmental sustainability and circular economic operations.
   

Eminent players operating in the Asia Pacific lithium-ion battery recycling market are:

• ACE Green Recycling
• Attero Recycling
• BatX Energies
• Cirbra Solution
• Ganfeng Lithium
• GEM
• Glencore
• Li-Cycle Holdings Corporation
• Lohum Cleantech
• Pure EV
• SK TES
• Swachcha Urja Nirman
• Tata Chemicals
• Umicore
   

Asia Pacific Lithium-Ion Battery Recycling Industry News:

• In March 2024, Mitsui & Co. partnered with leading global lithium-ion battery manufacturers to establish a joint venture focused on optimizing battery recycling processes. The initiative aims to improve recycling efficiency and meet the growing demand for critical raw materials across the Asia Pacific. This collaboration is expected to strengthen supply chain sustainability and security for the battery and electric vehicle industries.
   
• In June 2023, India's Ministry of Electronics and Information Technology (MeitY) handed over advanced lithium-ion battery recycling technology to nine Indian startups and firms. The action is part of a drive to speed up domestic innovation and reduce India's dependence on overseas sources for critical materials it uses to produce batteries. The handover is expected to boost India's battery recycling sector and the country's circular economy.
   

This Asia Pacific lithium-ion battery recycling market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “USD Billion & Billion Tons” from 2021 to 2034, for the following segments:

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Market, By Chemistry

• Lithium nickel manganese cobalt oxide (NMC)
• Lithium iron phosphate (LFP)
• Lithium cobalt oxide (LCO)
• Others

Market, By Process

• Pyrometallurgical
• Hydrometallurgical
• Physical/Mechanical

Market, By Source

• Automotive
• Non-automotive

The above information has been provided for the following countries:

• China
• South Korea
• Japan