The Battery Boom Is Here – And Recycling Is More Critical Than Ever

The global battery market is accelerating at an unprecedented pace. According to a report published by Research and Markets (December, 2024), the industry is projected to reach a staggering USD 329.84 billion by 2030, growing at a CAGR of 16.4% from 2025. Much of this momentum is driven by the EV revolution, rising energy storage needs, and the global push towards net zero.

As the battery boom intensifies, so does the urgency for sustainable end-of-life solutions- particularly in the UK, where battery fires, environmental pollution, and resource scarcity have become pressing concerns.

At the heart of this transformation lies the lithium-ion battery. With a 44% market share in 2024, lithium-ion remains the technology of choice for EVs, consumer electronics, and BESS. However, the rapid adoption of these batteries comes with complex challenges, including safe disposal, raw material sourcing, and environmental impact.

Recycling: The Natural Next Step

As sustainability becomes a core pillar of the battery value chain, the market is witnessing a marked shift toward circularity. From policy frameworks to industrial innovation, battery recycling is emerging as a key enabler of long-term growth – underscoring a broader movement to reduce reliance on virgin materials and minimise waste.

In the UK, this trend is gaining ground rapidly. With increased public and regulatory scrutiny around battery safety, pollution and fire hazards, companies are turning to advanced lithium-ion battery recycling solutions as a means of mitigating risk and contributing to a greener future. It is no longer just a matter of environmental responsibility, it’s becoming an operational imperative.

Driving Factors Behind Recycling Demand

Several key dynamics are fuelling the rise of lithium-ion battery recycling:

• Electric Vehicle Growth: With the automotive sector accounting for 31% of battery market revenues in 2024, EV adoption is significantly shaping demand for both battery production and recycling. The UK’s own transition away from internal combustion engines highlights the critical need for domestic recycling infrastructure to manage the incoming wave of end-of-life EV batteries.
• Renewable Energy Integration: As grid systems incorporate more solar and wind power, reliable energy storage becomes essential. Lithium-ion batteries are central to this effort – but without efficient recycling, the sustainability of these systems is compromised.
• Raw Material Scarcity: With global attention on the ethical and environmental costs of mining lithium, cobalt, and nickel, battery recycling offers a sustainable pathway to recover and reuse these valuable resources.

A Circular Future for the Battery Economy

The battery market’s explosive growth represents more than just technological advancement- it signals a broader shift in how industries think about sustainability, resilience and resource stewardship.

For Recyclus Group, the opportunity is clear: delivering robust, scalable recycling solutions that close the loop and support the UK’s transition to a low-carbon economy. As part of this commitment, we operate the UK’s first industrial-scale lithium-ion battery recycling facility, which has been processing batteries since July 2023- a critical step in strengthening domestic recycling capabilities.

As global battery demand surges, the ability to recycle lithium-ion batteries safely, efficiently, and at scale will not only drive environmental impact, it will also define industry leadership.