IHS Markit Foresees Rapid Expansion of Lithium-Ion Battery Recycling Industry

SEATTLE (Scrap Monster): The latest analysis report published by London-based information provider IHS Markit suggests rapid expansion of lithium-ion battery recycling industry. The industry is likely to triple its capacity by 2030, driven by a number of supply, demand, cost and sustainability factors.

According to IHS Markit, more than 500,000 tons of batteries are expected to reach their end of life by end of this year. This number is projected to rise to touch 1.2 million tons in 2025 and 3.5 million tons in 2030. Also, rise in electric vehicles will boost the demand for new Li-ion batteries from 250 gigawatt-hours this year to more than 1,700 gigawatt-hours over the next decade.

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Currently, recycled materials account only for a small portion of the battery supply chain. However, rise in supply of end-of-life batteries will ensure surge in supply of lithium, nickel and cobalt from recycled sources to be used in new batteries.

George Hilton, energy storage senior analyst at IHS Markit, the market now has excess battery recycling capacity, mainly due to large recycling plants in China. However, the rising demand is likely to make it necessary for additional number of recycling facilities in the coming years, especially in Europe and the U.S.