Global BESS Market Growth: A Catalyst for Lithium-Ion Battery Recycling
As the global transition to cleaner energy accelerates, Battery Energy Storage Systems (BESS) are becoming a cornerstone of modern infrastructure. Used to stabilise grids and store renewable energy, BESS demand is surging- and with it comes a vital, often overlooked consequence: a growing volume of batteries that will one day reach end-of-life.
As the UK’s first industrial-scale lithium-ion battery recycler, Recyclus Group is uniquely positioned to support this shift. Our cradle-to-cradle recycling solution is designed to meet the needs of a rapidly evolving energy and utility sector, offering environmentally responsible practices that go far beyond disposal.
Unpacking the BESS Boom
According to Rho Motion, the BESS market has been the fastest-growing battery demand segment for the past three years. In 2024 alone, BESS demand grew by 52%, doubling the growth seen in the EV sector.
China remains the global leader, accounting for two-thirds of installed grid-scale BESS capacity. The United States follows with around 25%. Within Europe, the UK leads with an installed capacity of 7.5 GWh- highlighting the country’s strategic push towards flexible, resilient energy networks.
As the market continues to evolve, a new wave of high-growth countries is emerging. Canada, Saudi Arabia, Australia, Chile, and Uzbekistan are projected to experience the fastest expansion through to 2027. In Canada, capacity is set to soar from 0.3 GWh to 18.3 GWh, while Saudi Arabia may see a 24-fold increase to 32.4 GWh.
From Growth to Responsibility
While the global BESS pipeline continues to expand- led by China, the US, and Australia, this growth brings with it a parallel challenge: what happens to the vast number of batteries once they reach end-of-life?
This is where Recyclus Group plays a vital role.
Our end-to-end lithium-ion battery recycling service is tailored to meet the complex needs of the energy and utility sector. From secure collection to specialised dismantling and discharging, our experienced team ensures safety and sustainability at every stage.
With global demand rising, we are seeing a clear shift: energy companies are not only investing in storage capacity, but also in long-term solutions for waste management and material recovery. This forward-thinking approach supports the circular economy, where valuable materials like lithium, cobalt, and nickel are recovered and reused, reducing reliance on raw mineral extraction.
Enabling a Circular Energy Economy
As new markets enter the BESS arena and mature markets expand their pipelines, the volume of used lithium-ion batteries will rise sharply in the years ahead. This opens the door to a new frontier of opportunity in battery recycling- both in terms of environmental impact and economic value.
At Recyclus, we’re proud to be leading the recycling of batteries from BESS. Our mission is to make battery recycling as fundamental to the energy storage sector as deployment and performance. By collaborating with partners across the energy and utility industries, we ensure every battery we receive is responsibly processed, recovering key materials to complete the circular battery lifecycle.
Circular energy starts with circular thinking.
Get in touch with a member of our team to learn how we can support your recycling goals.