Market Challenges And Opportunities

However, several restraints such as high startup costs of recycling facilities, re-use of EV batteries, and lack of efficient techniques for battery recycling may hinder the market's growth.

Global Electric Vehicle Battery Recycling Market Drivers:

Limited metal resources to drive the market growth

In July 2017, the government of Britain and France announced partnership pledging to ban the sales of gasoline and diesel cars by 2040, for reducing emission of toxic gases from vehicles. As a result, the demand for electric vehicles increased significantly along with the demand for battery components as well as raw materials such as cobalt, nickel, lithium, aluminum among others. However, the supply of these raw materials utilized in production of these battery packs is hindered as these resources are limited and of high cost. Thus, demand for recycling of batteries used in EVs is increasing, which is expected to boost growth of the global electric vehicle battery recycling market over the forecast period.

Rise in demand for zero emission vehicles to boost the market growth

The concerns around the adverse effect of climate change and increasing pollution levels are increasingly significantly leading to major demand for electric vehicles across several major cities around the world. As the cost of diesel and petrol continues to rise, the demand for fuel-efficient vehicles is increasing substantially. Moreover, as the fossil fuel reserves are depleting, and companies are trying to obtain maximum profit from the oil reserves, the demand for zero emission vehicles is increasing all over the world. These factors are thus, driving growth of the global electric vehicle battery recycling market.

Global Electric Vehicle Battery Recycling Market Opportunities:

High recycling gap is one of the major factors expected to create business opportunities in the global electric vehicle battery recycling market during the forecast period. Core components of dead electric vehicle batteries such as nickel, lithium, and cobalt among others are limited, and extracting these ingredients can cause water pollution as well as depletion of resources. Along with this, if the battery is damaged, it poses the risk of emitting harmful gases. Due to all these environmental concerns, recycling these batteries is the best option. However, there is a large gap in recycling of these batteries, due to which the market is likely to witness multiple lucrative opportunities in the future.

Increasing number of subsidies encouraging battery recycling is also anticipated to offer growth opportunities in the global electric vehicle battery recycling market during the forecast period. 50% of the lead supply comes from recycling batteries, and with growing sale statistics of electric vehicles, the demand for EV batteries will continue to increase. As a result, the need for SMEs to recycle these batteries to obtain core raw materials will also increase in the coming years. Governments around the world are offering various subsidies on EVs to grow their adoption. Along with this, governments of countries around the world are also offering subsidies to purchase the machinery needed for the setup. This in turn will create ample opportunities in the global market.

Global Electric Vehicle Battery Recycling Market Restraints:

Re-usable electric vehicle batteries to hinder the market pace

Electric vehicles need high-performance batteries for operating efficiently. Thus, batteries that can be recharged and discharged at a particular point are used in these vehicles. When these batteries reach their end point, they are removed from the vehicle instead recycling. The battery cells can be re manufactured and the cells can be used in storage applications. Thus, the need for recycling batteries of such EVs is hindered, which is further expected to hamper growth of the market over the forecast period.

High cost of building recycling plants to limit the market growth

The most common type of battery used in EVs is lithium ion battery. The machinery needed for recycling these batteries are of high cost, ranging from US$ 20,000 to US$ 200,000. The cost of these machineries could fluctuate over the time, as the technology of production and recycling methods of batteries continue to advance. This is further expected to hamper growth of the global electric vehicle battery recycling market over the forecast period.