IMARC Group has recently released a new research study titled “United States Battery Recycling Market Size, Share, Trends and Forecast by Type, Source, End Use, and Region, 2025-2033” which offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends, and competitive landscape to understand the current and future market scenarios.

Market Overview

The United States battery recycling market size was valued at USD 4.5 Billion in 2024 and is projected to reach USD 7.9 Billion by 2033, registering a CAGR of 6.40% during the forecast period 2025-2033. This growth is driven by increasing demand for sustainable waste management, rising electric vehicle adoption, stringent environmental regulations, and the growing emphasis on resource conservation. These factors collectively fuel a robust market landscape in the region.

Study Assumption Years

• Base Year: 2024
• Historical Years: 2019-2024
• Forecast Period: 2025-2033

United States Battery Recycling Market Key Takeaways

• Current Market Size: USD 4.5 Billion (2024)
• CAGR: 6.40% (2025-2033)
• Forecast Period: 2025-2033
• Expansion is driven by stricter environmental laws to reduce hazardous battery waste.
• Recycling of lithium-ion and lead-acid batteries is promoted by state regulations aimed at landfill pollution control.
• Investment of USD 44.8 million by U.S. DOE in 2024 aims to reduce recycling costs of battery components and boost EV affordability.
• Growth is supported by increasing numbers of electronic device users generating disposable batteries.
• Technological advancements such as hydrometallurgical and pyrometallurgical processes improve recycling efficiency and material recovery.

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United States Battery Recycling Market Growth Factors

The United States battery recycling market is expanding significantly due to increasing regulation of environmental laws focused on reducing hazardous waste generated from batteries. Governments at state and federal levels enforce regulations to curb pollution from landfills and prevent toxic metal usage, facilitating the recycling of lithium-ion and lead-acid batteries. For example, environmental policies motivate the recycling industry's growth, directly supporting material recovery and waste management efforts. The recycling process particularly for electric vehicle (EV) batteries aids resource conservation by recovering valuable metals like cobalt, nickel, and lithium, which lowers resource consumption and associated costs.

The U.S. Department of Energy (DOE) announced a substantial investment of USD 44.8 million in October 2024 from the Bipartisan Infrastructure Law (BIL) to fund projects that reduce battery recycling costs and enhance EV affordability long-term. This financial impetus alongside increasing incentive programs by federal and state bodies drives the industry base's growth. Moreover, the rising number of electronic devices in use generates more batteries that require proper disposal and recycling, creating a positive outlook for the market.

Advancements in battery recycling technologies such as hydrometallurgical and pyrometallurgical processes are increasing the efficiency of material recovery. These technologies allow economical recovery of metals and improved sustainability performance. Leading firms are adopting reproducible and cost-effective recycling solutions to meet growing demand in electric cars and consumer electronics. Collaborations like those between battery producers and recyclers advance circular economy practices, while governmental extended producer responsibility (EPR) programs encourage consumers and businesses to recycle batteries responsibly, further supporting market expansion.

United States Battery Recycling Market Segmentation

Analysis by Type:

• Lead-acid Batteries: Drive market demand due to frequent replacements in automotive and industrial sectors, providing high reliability, lower cost, and uninterruptable power supply during blackouts. They are recyclable and align with environmental agendas.
• Nickel-based Batteries: Preferred for power tools and medical devices due to durability and resistance to temperature extremes. Suitable for critical data center applications where electricity supply is unstable.
• Lithium-based Batteries: Growing demand fueled by applications in electronics and energy storage. These batteries offer high energy density, lightweight, modularity, short response times, optimize efficiency and support super mobility.
• Others

Analysis by Source:

• Industrial: Increasing disposal of batteries from energy storage systems and manufacturing equipment fosters recycling demand. Large-format batteries supply data centers requiring maximum power and reliability.
• Automotive: Repurposed EV and hybrid vehicle batteries are popular for green energy storage in data centers, valued for high energy content and cost-efficiency.
• Consumer Products: High turnover of small batteries in devices like toys and wearables creates steady recycling demand.
• Electronic Appliances: Compact batteries enhance micro-and-edge data center performance, supporting decentralized infrastructure and localized data processing.
• Others

Analysis by End Use:

• Reuse: Emergent segment with reused batteries deployed in renewable energy and backup power, avoiding electrical waste and complying with environmental standards.
• Repackaging: Used for grid storage and secondary power in data centers; cost-effective and prolong battery life.
• Extraction: Focus on recovering critical raw materials (lithium, cobalt, nickel) to support new battery manufacturing, promoting resource independence and environmental impact reduction.
• Others

Regional Insights

The United States battery recycling market shows robust growth across all regions with particular strength in the Northeast. This region benefits from stringent environmental policies, established recycling networks, and heightened awareness among industries and consumers in urban areas. The Midwest contributes through substantial battery waste generation from industrial manufacturing hubs, automotive production, and renewable energy adoption. The South region’s growth is propelled by EV adoption, consumer electronics usage, expanding infrastructure, and supportive sustainability policies. The West region advances market demand driven by emphasis on sustainability, renewable energy initiatives, and evolving eco-conscious state policies and communities.

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Recent Developments & News

In November 2024, the U.S. Department of Energy (DOE) sanctioned a loan of USD 475 million to Li-Cycle to establish a battery processing facility in New York. This investment significantly strengthens the domestic supply chain for critical minerals essential to battery manufacturing and recycling, underscoring federal commitment to developing sustainable battery technologies.

Key Players

• Redwood Materials
• Novocycle Technologies
• Li-Cycle

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