Top 10 Global Lithium-ion Battery Recycling Companies in 2025: Balancing Growth and Challenges

We are living in a world where sustainability is no longer an option but has become a necessity. Various industries are rethinking the lifecycle of the products they create. The surge in electric vehicles (EVs), renewable energy storage systems, and various consumer-related electronics has pushed lithium-ion batteries to the heart of this transformation.

Now, recycling these lithium-ion batteries is becoming the norm to maintain or even reduce environmental impact. In this blog, we will explore the lithium-ion battery recycling market and examine the factors affecting its growth. We will also identify the major companies competing in the market and discuss what the future holds for it.

Lithium-ion Battery: Introduction

A lithium-ion (Li-ion) battery is a rechargeable battery. It utilizes the movement of lithium ions between a negative anode and a positive cathode to generate electricity. Li-ion batteries are known to have high energy density and charge quickly. The lifespan of these batteries is also long. These batteries are used in various devices, including smartphones, laptops, and EVs.

Some key stats. Our latest assessment reveals the lithium-ion battery market stood at USD 63.51 billion in 2024. The market is anticipated to account for a CAGR of 15.4% between 2025 and 2034.

Importance of Lithium-ion Battery Recycling

As lithium-ion batteries become a major component and powerhouse in many industries, their disposal presents significant environmental challenges, too. They comprise various valuable metals, such as Lithium, Nickel, Manganese, and Cobalt, which are limited in supply and harmful when disposed of improperly. Recycling lithium-ion batteries diminishes environmental risks and recovers these critical metals, thus reducing the need for mining and ensuring a sustainable supply chain.

Worldwide, governments are increasingly emphasizing stronger environmental regulations to manage battery waste and implementing various policies that promote battery recycling.

Key Companies Offering Lithium-ion Battery Recycling

Li-Cycle Corp: Li-Cycle is one of the major players in this area. It utilizes a unique proprietary technology to recover about 95% of critical materials from lithium-ion batteries. The main aim of this industry is to reintroduce valuable metals back into the supply chain.

Redwood Materials: Founded by Tesla’s former CTO, Redwood Materials focuses mainly on recovering valuable materials from used batteries and ensuring they are reused in the production of new batteries. Redwood has partnered with various companies, such as Amazon and Panasonic, to create a closed-loop supply chain system.

Umicore N.V.: Based in Belgium, Umicore is the leader in material technology and recycling globally. The company operates one of the most advanced battery recycling facilities in the world, capable of processing batteries and recovering high-value metals, including lithium, nickel, manganese, and cobalt. Their closed-loop system application ensures them to be a key member of the circular economy. In 2022, Umicore launched a new business unit, Battery Recycling Solutions, to focus on this fast-growing market.

Retriev Technologies Inc.: Retriev Technologies has been in the lithium-ion battery recycling market for decades now. They specialize in recovery from lithium-ion and various other types of batteries. This company has a strong presence in North America and the EU and offers comprehensive solutions for the collection, processing, and recovery of material.

Sumitomo Metal Mining Co., Ltd.: The company focuses on the extraction and use of valuable metals such as copper, nickel, and cobalt from recycled lithium-ion batteries.

Lithion Recycling Inc: Lithion Technologies specializes in the recovery of materials from end-of-life and manufacturing waste lithium-ion batteries.

BATREC Industrie AG: The company recovers valuable materials through mechanical and hydrometallurgical processes from used lithium-ion batteries.

Fortum:  Fortum is engaged in lithium-ion battery recycling. The company extracts critical metals using a variety of mechanical and hydrometallurgical recycling methods.

ACCUREC Recycling GmbH: ACCUREC uses advanced recycling processes to recover raw materials from lithium-ion batteries.

AkkuSer: AkkuSer is recycling lithium-ion batteries through its patented "Dry-Technology.” This technology is a mechanical process that does not use water, chemicals, or heat.

Innovations Shaping Future of Lithium-Ion Recycling

Increased Demand for Lithium-ion Batteries: The growing trend of shaping a more sustainable future with a smaller carbon footprint has resulted in increased popularity of EVs and various other applications powered by lithium-ion batteries. This has led to an increase in demand for recycling services and is driving the electric vehicle battery recycling market demand.

Technological Enhancements in Recycling Processes: Traditional methods of recycling are being upgraded in order to be more efficient and cost-effective. Emerging technologies like closed-loop systems and direct recycling are gaining attention because they offer higher recovery rates of valuable battery metals, including lithium, nickel, manganese, and cobalt.

Pressure from Regulatory Authorities: Various governments across the world are promoting the sale of sustainable goods to consumers and making the rules increasingly strict for manufacturers to produce more sustainable goods. This has led to a shift towards increased usage of lithium-ion or electric batteries, resulting in growth for the lithium-ion recycling market. For instance, the EU has aimed at mandatory recycling rates for lithium-ion batteries, targeting a 70% recovery by 2030.

Circulatory Economy Approach: As the demand for electric appliances increases, more companies are adopting a circular economy approach, meaning lithium-ion batteries are not only recycled but also repurposed. It means that before the battery gets fully recycled, it can have a second life as, for example, a storage unit for the power grid market.

Economic Incentives: Governments and industrial organizations worldwide are offering incentives to encourage people and small-scale organizations to recycle lithium-ion batteries and promote circular growth in the market.

Partnerships and Collaborations: The lithium-ion battery recycling market is seeing a surge in partnerships between manufacturers, recyclers, and technology providers. The main aims behind such collaborations are to develop advanced recycling technologies, ensure the supply chain remains efficient, and scale up recycling technologies.

Challenges in Lithium-ion Battery Recycling

The major challenge in recycling is the lack of a legislative framework. While the demand for sustainable and electric goods is at an all-time high, there is a lack of comprehensive regulations to govern the recycling and disposal of lithium-ion batteries. This lack of legislative frameworks results in inconsistencies in the recycling market of lithium-ion batteries.

Future Outlook

The future for the lithium-ion battery recycling market appears to be very bright and promising. This optimism is driven by increasing demands for sustainable and electric equipment, heightened consumer awareness and willingness to contribute to sustainability, government support and policies, and the use of eco-friendly materials to ensure a healthy and beautiful future.

As a consumer, you can also support this market by properly disposing of used batteries and purchasing gadgets from vendors or distributors that prioritize recycling.