Circular Battery Economy Market to Reach USD 77.84 Billion by 2032 as Global EV Expansion and Critical Mineral Recovery Accelerate | by DataM Intelligence

AUSTIN, Texas and TOKYO, Dec. 3, 2025 /PRNewswire/ -- According to DataM Intelligence, the Circular Battery Economy Market Size reached USD 23.29 billion in 2024 and is forecasted to grow exponentially to USD 77.84 billion by 2032, representing a powerful CAGR of 16.28% during 2025–2032.
This acceleration reflects the world's transition toward sustainable energy systems, driven by soaring electric vehicle (EV) adoption, escalating demand for lithium-ion batteries, and the urgent need to secure critical minerals such as lithium, nickel, cobalt, manganese, and graphite.

The circular battery economy, built around recycling, resource recovery, reuse, repurposing, and closed-loop manufacturing, is now viewed as a strategic necessity, not merely an environmental initiative. With global EV sales expected to surpass 45 million units by 2032, the industry faces enormous demand for high-purity battery-grade materials. Circular pathways are becoming the only viable solution to bridge supply gaps, reduce carbon footprints, and stabilize the global battery supply chain.

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A Strategic Industry Shift: Circularity Becomes a Competitive Advantage

1. Global Pressure to Recover Critical Minerals

More than 70% of the world's cobalt and 60% of lithium are concentrated in just a few countries, creating geopolitical vulnerability. Recycling helps reduce raw material dependence by recovering up to 95% of key elements from spent batteries.

2. Massive Growth in EV Battery Retirements

By 2030, 1.4 million tons of EV battery waste will enter the recycling stream, increasing to more than 8 million tons by 2040. These volumes are creating unprecedented opportunities for secondary material markets.

3. Corporate Sustainability Mandates

Automakers such as Tesla, BMW, Renault, Toyota, and BYD are mandating minimum recycled content in future battery chemistries. This shift is accelerating investments in recycling plants and closed-loop partnerships with battery manufacturers.

Market Segmentation

By Battery Type (Lithium-ion, NiMH, Lead-acid, Solid-state, Others)

Lithium-ion (Li-ion) Batteries

Li-ion batteries dominated the market in 2024, contributing 64% (USD 14.9 billion) of total revenue.
Li-ion batteries cover EVs, smartphones, laptops, renewable storage, and industrial equipment. With Li-ion batteries expected to make up >90% of EV battery chemistry by 2030, this segment will remain the anchor for circular technologies.

Nickel-Metal Hydride (NiMH) Batteries

NiMH batteries contributed 14% (USD 3.26 billion).
NiMH remains relevant for hybrid vehicle fleets, energy storage systems, and power tools. Demand is steady but expected to decline as automakers transition to Li-ion dominance.

Lead-acid Batteries

Lead-acid accounted for 12% (USD 2.79 billion).
Despite its maturity, the segment remains important due to global automotive starter batteries and industrial backup systems. Lead-acid recycling efficiency already exceeds 95%, making it a strong circularity benchmark.

Solid-State Batteries

Solid-state batteries represented 6% (USD 1.40 billion).
Growth is rapid as R&D accelerates for next-generation EV batteries with higher energy density, safety, and lower degradation.

By Source (Electric Vehicles, Consumer Electronics, Energy Storage Systems, Others)

Electric Vehicles (EVs)

EVs dominated the circular battery economy, accounting for 53% (USD 12.3 billion) of the 2024 market.
The rapid expansion of global EV fleets and 8–12 year battery life cycles will generate immense recycling volumes by 2030. Spent EV packs produce the largest quantities of black mass and battery-grade material for recovery.

Consumer Electronics

Consumer electronics contributed 27% (USD 6.28 billion), driven by smartphones, laptops, tablets, wearables, and household devices. Although smaller in size, the volume of devices reaching end of life makes this a critical feedstock source.

Energy Storage Systems (ESS)

ESS generated 14% (USD 3.26 billion) of the market.
Growth in solar + battery installations and grid-scale storage is creating a rising stream of LFP, NMC, and advanced chemistries entering recycling.

By Technology (Collection & Sorting, Mechanical Separation, Chemical Leaching, Direct Recycling, Others)

Collection & Sorting

This segment accounted for 28% (USD 6.52 billion).
Effective collection infrastructure is foundational for circular systems, with major markets implementing extended producer responsibility (EPR) frameworks.

Mechanical Separation

Mechanical processes, including crushing, shredding, and separation, represented 32% (USD 7.45 billion)-making it the largest technology segment.
This stage enables production of black mass and metal concentrates.

Chemical Leaching (Hydrometallurgy & Pyrometallurgy)

Chemical leaching contributed 26% (USD 6.06 billion).
Hydrometallurgical processes are becoming the preferred route because they recover up to 95–98% of critical minerals.

Direct Recycling

Direct recycling accounted for 10% (USD 2.33 billion) and is rapidly emerging as a sustainable method that restores active materials (cathodes and anodes) without complete breakdown.

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Regional Analysis

United States

The U.S. contributed 38% (USD 8.8 billion) in 2024. The domestic operational lithium-ion battery production capacity exceeded 200 GWh in 2024, driven by the establishment of the "Battery Belt," which directly creates a localized, high-volume feedstock future for recyclers.

U.S. Market Insights

• Federal incentives under IRA allocate USD 369 billion to clean tech manufacturing
• EV battery recycling capacity expanded 170% YoY
• More than 40 commercial recycling facilities are now in development or operation
• Black mass output in North America reached 58,000 tons in 2024, up 32% YoY

The U.S. is expected to surpass USD 30 billion by 2032.

Japan

Japan represented 8% (USD 1.86 billion) of the global market.

Japan Market Highlights

• High EV penetration in Tokyo and major prefectures
• Japan recovers >96% of portable battery waste via advanced sorting
• Strong partnerships between automakers and recyclers, e.g., Toyota–Panasonic–Prime Planet Energy & Solutions
• Solid-state battery commercialization expected by 2027–2028

Japan is projected to exceed USD 6.7 billion by 2032.

Competitive Landscape:

The major global players in the market include Li-Cycle Holdings Corp., Redwood Materials Inc., Umicore SA, Glencore plc, Ascend Elements, Retriev Technologies Inc., American Battery Technology Company (ABTC), TES, Battery Resourcers, Ecobat Technologies Ltd. and others.

Financial Performance of Key Players (2024):

Note: Umicore revenue conversion based on 2024 year-end exchange rate.

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The Future of the Circular Battery Economy - Defining the Next Decade

By 2032, circular battery ecosystems will undergo transformative advancements:

• Direct recycling adoption will rise from <5% today to 35% globally
• Recycled lithium will supply 25% of global Li-ion demand
• EV OEMs will integrate 50–60% recycled nickel and cobalt in their batteries
• Black mass production will exceed 15 million tons annually worldwide
• AI-driven material sorting will increase recovery rates by 30–40%
• Hydrogen reductive roasting + hydrometallurgy will become the dominant recycling method
• Government mandates will require minimum recycled content in battery supply chains

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