Report Overview

Rapid increasing in e-waste driven by high adoption of electric vehicles (EVs), the US federal and states governments’ stringent regulations and supportive initiatives, and an increasing focus on resource recovery are expected to boost the growth of China Electric Vehicle (EV) Battery Recycling Market during the forecast period between 2026 and 2032.

China Electric Vehicle (EV) Battery Recycling Market – Industry Trends & Forecast Report, 2032

China Electric Vehicle (EV) Battery Recycling Market size was estimated at USD 11.26 billion in 2025. During the forecast period between 2026 and 2032, China Electric Vehicle (EV) Battery Recycling Market size is projected to grow at a CAGR of 33.81% reaching a value of USD 86.50 billion by 2032. Prominent drivers of the China Electric Vehicle (EV) Battery Recycling Market include growing environmental awareness and the rising need for sustainable battery disposal solutions.

The Chinese government’s initiatives include Extended Producer Responsibility (EPR), standardization and traceability, material recovery targets, financial incentives, cascade utilization, battery swapping, and increasing support for research and development (R&D) programs. These stringent regulations, support, and subsidies are actively promoting responsible recycling practices and streamlining battery disposal processes. China as the world’s leading and largest EV market is compelling battery manufacturers to invest in efficient recycling systems to recover valuable raw materials and mitigate environmental impact. Furthermore, technological advancements in recycling methods, including sophisticated material recovery techniques, are attracting investments and fostering the growth of domestic recycling infrastructure to secure critical minerals and materials from the used batteries. These efforts are further bolstered by collaborations between automotive companies and recycling firms, which are supporting the creation of a closed-loop system for battery usage and reuse. As the market matures, there is a clear shift toward circular economy models, supported by evolving regulations aimed at strengthening the battery recycling framework in China and ensuring long-term sustainability.

Source: BlueWeave Consulting

Electric Vehicle (EV) Battery Recycling – Overview

Electric vehicle (EV) battery recycling is the process of recovering valuable materials, such as lithium, cobalt, nickel, and graphite from used or end-of-life EV batteries. The EV battery recycling process helps in the reduction of environmental pollution, conserve natural resources, and support the circular economy by enabling the reuse of extracted materials in new batteries. It involves methods like hydrometallurgical, pyrometallurgical, and mechanical processes to safely dismantle and extract components. Recycling is increasingly important due to the rising use of batteries in EVs, consumer electronics, and energy storage systems (ESS).

China Electric Vehicle (EV) Battery Recycling Market

Growth Drivers

Heightened Focus on Recovering Most Critical Minerals from Old Batteries

China is the world’s leading electric vehicles (EVs) market and EV battery recycling market. In 2024, China had more than 20 million new energy cars, and the country accounted for more than 50% of the global electric cars market in 2025. The Chinese government’s supportive policies and initiatives are playing a pivotal role in accelerating the growth of China Electric Vehicle (EV) Battery Recycling Market. The Chinese government has major policies, including Extended Producer Responsibility (EPR), EV battery standardization and traceability, stringent rules targeting more than 99% recovery of nickel, cobalt, manganese, and lithium,

subsidies, and battery swapping. All these policies and stringent regulations are aiming to secure local supply of critical minerals, as China is further strengthening its leadership position in the global critical minerals or rare earth materials market.

Challenges

High Initial Costs for Setting Up EV Battery Recycling Plant

High initial investments required for setting up an EV battery recycling plant could be a significant barrier for the growth of China Electric Vehicle (EV) Battery Recycling Market. Setting up advanced recycling facilities requires substantial capital for technology, infrastructure, and skilled labor. Many small and medium-sized enterprises (SMEs) face financial constraints, limiting their ability to enter the market. Additionally, the cost of acquiring modern equipment with advanced technologies and complying with evolving environmental regulations further adds to the financial burden. The long gestation period before returns are realized also discourages investors. As a result, despite growing demand and supportive policies, the high upfront cost remains a major challenge in scaling EV battery recycling operations.

Impact of Escalating Geopolitical Tensions on China Electric Vehicle (EV) Battery Recycling Market

Escalating geopolitical tensions could significantly impact the growth of China Electric Vehicle (EV) Battery Recycling Market by disrupting the global supply chain of critical raw materials such as lithium, cobalt, and nickel, which are primarily imported. Trade restrictions, increased tariffs, or diplomatic conflicts major global economies, particularly with the United States by potentially disrupting the global supply chain of critical raw materials. Trade restrictions, increased tariffs, or diplomatic conflicts with major economies such as the United States could lead to export restrictions and elevated costs, thereby impeding recycling operations. Furthermore, geopolitical instability has the potential to delay the advancement of the Chinese market. While such tensions may necessitate an acceleration of domestic sourcing and recycling capabilities, fostering innovations, they would also entail increased initial investment burdens. Overall, these global uncertainties present a complex landscape of both challenges and opportunities for the players in China Electric Vehicle (EV) Battery Recycling Market.

China Electric Vehicle (EV) Battery Recycling Market

Segmental Coverage

China Electric Vehicle (EV) Battery Recycling Market – By Battery Chemistry

Based on battery chemistry, China Electric Vehicle (EV) Battery Recycling Market is divided into Lithium Iron Phosphate (LiFePO4), Lithium Nickel Manganese Cobalt Oxide (LiNiMnCoO2), Lithium Cobalt Oxide (LiCoO2), Lithium Manganese Oxide (LMO), Lithium Nickel Cobalt Aluminum Oxide (Li-NCA), Lead Acid, and Nickel-Metal Hydride (NiMH) segments. The lithium nickel manganese cobalt oxide (LiNiMnCoO2) segment holds the largest share of China Electric Vehicle (EV) Battery Recycling Market by battery chemistry. LiNiMnCoO2 is widely favored for its optimal balance of energy density, thermal stability, and longevity, making it a key component in EVs and portable electronic devices. As demand for these technologies continues to rise, the recycling of LiNiMnCoO2 batteries has become increasingly vital. Efficient recycling not only enables the recovery of valuable materials like nickel, manganese, and cobalt but also supports environmental sustainability and resource conservation. It makes LiNiMnCoO2 battery recycling essential for fostering a circular economy and ensuring the long-term viability of energy and electric mobility sectors. Meanwhile, the lithium iron phosphate segment is expected to record the fastest growth rate during the forecast period. The surge is driven by its increasing adoption in energy storage systems and EVs due to its cost-efficiency, thermal stability, compact design, and low self-discharge rate. As global environmental concerns grow, manufacturers and governments are shifting focus toward cleaner technologies, with many countries introducing policies to accelerate EV adoption. Although the segment faces competition from alternatives like lead-acid, lithium-air, and flywheel batteries, the non-toxic nature and affordability of lithium iron phosphate batteries position them as a key contributor to the rising demand for sustainable energy solutions.

China Electric Vehicle (EV) Battery Recycling Market – By Source

China Electric Vehicle (EV) Battery Recycling Market by source is divided into Electric Vehicle (EV) Production Scrap and End of Life Batteries segments. The end of life batteries segment hold the leading market share of China Electric Vehicle (EV) Battery Recycling Market by source. The rapid adoption of EVs is a major factor propelling the growth of the segment. As batteries in EVs reach end-of-life, the volume of spent batteries is expected to rise sharply, driving demand for efficient recycling solutions. With battery waste projected to reach several hundred thousand tons annually by 2030, the US EV Battery Recycling Market is poised for the rapid expansion to ensure sustainable resource recovery and environmental management.

Source: BlueWeave Consulting

China Electric Vehicle (EV) Battery Recycling Market – By Recycling Process

On the basis of recycling process, China Electric Vehicle (EV) Battery Recycling Market is segmented into Hydrometallurgy, Pyrometallurgy, and Direct Recycling process segments. The hydrometallurgy segment accounts for the major market share in China Electric Vehicle Battery Recycling Market by process. The hydrometallurgy method helps in the selective extraction of high purity materials, including lithium, cobalt, and nickel. The process’s market dominance is driven by its high efficiency in recovering materials and lower impact on environment than that of the traditional pyrometallurgy process.

Source: BlueWeave Consulting

China Electric Vehicle (EV) Battery Recycling Market – By EV Type

Based on electric vehicle (EV) type, China Electric Vehicle (EV) Battery Recycling Market is segmented into Two Wheelers, Three Wheelers, Passenger Cars, and Other EV types. The passenger cars segment accounts for the major market share in China Electric Vehicle Battery Recycling Market by EV type. China holds the largest number of electric cars (more than 20 million in 2024) in the world. As many electric cars face end of their life, more EV batteries from these old electric cars could reach the country’s growing number of EV battery recycling plants.

Source: BlueWeave Consulting

Competitive Landscape

Major players operating in China Electric Vehicle (EV) Battery Recycling Market include Anhui Chaoyue Environmental Protection Technology Co., Ltd, Brunp (subsidiary of Contemporary Amperex Technology Co., Limited (CATL)), BYD Company, CNGR Advanced Material Co., Ltd, Ganfeng Lithium Group, Geely, GEM Co., Ltd, Guangdong Guanghua Sci-Tech Co., Ltd, Tianneng Group, and Zhejiang Huayou Cobalt Co., Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In October 2025 - Brunp Recycling, a subsidiary of Contemporary Amperex Technology Co., Limited (CATL), announced that it had achieved increased material recovery rates (99.6%) through its directional recycling technology (DRT) for the recycling of critical materials, including nickel, cobalt, and manganese.

• In June 2025 - Ningbo Contemporary Brunp Lygend Co., Ltd (CBL), a subsidiary of Brunp, partnered with PT Aneka Tambang Tbk (ANTAM) and Indonesia Battery Corporation (IBC) began the construction of the Indonesia Battery Integration Project in Karawang, West Java, Indonesia. The project is planned to cover the entire battery value chain, from nickel mining, processing battery materials, battery manufacturing, and battery recycling.

Scope of the Report

By Battery Chemistry

• Lithium Iron Phosphate (LiFePO4)

• Lithium Nickel Manganese Cobalt Oxide(LiNiMnCoO2)

• Lithium Cobalt Oxide (LiCoO2)

• Lithium Manganese Oxide (LMO)

• Lithium Nickel Cobalt Aluminum Oxide

• Lead Acid (Li-NCA)

• Nickel-Metal Hydride (NiMH)

By Source

• Electric Vehicle (EV) Production Scraps

• End of Life Batteries

By Recycling Process

• Hydrometallurgical Process

• Pyrometallurgical Process

• Direct Recycling

By EV Type

• Two Wheelers

• Three Wheelers

• Passenger Cars

• Other EVs