The global battery industry is on the cusp of significant transformation, with projections indicating a surge in demand to approximately 4,400 GWh by 2030. This burgeoning demand spans various sectors, including electric vehicles (EVs), consumer electronics, electric two-wheelers and three-wheelers, electric ships, eVTOL aircraft, and energy storage systems.
Core materials such as nickel-based cathodes, lithium iron phosphate (LFP), and lithium manganese iron phosphate (LMFP) are expected to be at the forefront of this expansion. As the world shifts towards electrification and sustainable energy solutions, the importance of these materials cannot be overstated.
Industry experts predict that the market for recycling retired batteries is poised for rapid growth after 2025. This growth is driven by several factors: the gradual release of EV scrappage demand, supportive policy incentives, and strong downstream demand for recycled products.
After completing their first life cycle, batteries enter a collection stage where they are gathered through various channels. In the future, it is anticipated that original equipment manufacturer (OEM) channels will play a primary role in this collection process. The subsequent disposal process involves two key paths: secondary use and recycling.
Secondary use entails repackaging battery packs or selecting modules or cells for reuse in applications such as energy storage systems. Recycling, on the other hand, aims to recover valuable metals from the batteries, addressing the rising prices and scarcity of precious metals. This stage is highly significant for OEMs and the broader industry.
With Asia at the forefront of the global EV market, the region is set to play a critical role in the burgeoning battery recycling industry. The anticipated surge in recycling not only presents significant economic opportunities but also aligns with global sustainability goals by reducing reliance on virgin raw materials and minimizing environmental impact.
Reference(s):
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