Technology · US · NAICS 336211

Battery Recycling in the US: Market Size, Businesses & Forecast 2026

The US battery recycling industry processes spent batteries to recover valuable materials like lithium, cobalt, and nickel, with output reaching approximately 150,000 metric tons in 2022 (USGS). The industry is experiencing significant growth driven by increasing electric vehicle adoption and recycling mandates, with capacity expansion underway across multiple states.

Businesses · 2025
982
Outlook
Growing
Competition
Moderate, rising

Industry snapshot

Demand drivers
EV Adoption
Material Recovery
Regulatory Pressure
Supply Security
Consumer Awareness
Relative importance, Claight qualitative assessment.
Market structure
fragmented
moderate
concentrated
Competitive intensity
moderate, rising
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Key public data points

Annual Battery Processing (2022)150,000 metric tons
Source: US Geological Survey
Electric Vehicle Sales (2022)1,400,000 units
Source: Environmental Protection Agency
Battery Waste Generation (2021)11,000,000 tons
Source: Environmental Protection Agency
Recycling Facilities (2023)50.0 facilities
Source: Department of Energy

Historical & forecast

Base year 2025. Each series is official through its own latest government-data year (shown in the legend on each chart), and years beyond that are Claight estimates. As of July 2026 the current year is still in progress (2026 annual data is not yet published), so the forecast runs to 2030.

Number of businesses
Base year 2025
Official data (2016-2025) · BLS QCEWForecast
Forecast
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2025 base: 9822030 est: 1,084
Employment
Base year 2025
Official data (2016-2025) · BLS QCEWForecast
Forecast
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2025 base: 59,9302030 est: 61,397
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Industry Definition and Scope

What does the Battery Recycling in the US industry cover?

Battery recycling encompasses the collection, processing, and recovery of materials from spent batteries, primarily lithium-ion but also lead-acid and other chemistries. The industry covers both consumer electronics and electric vehicle battery recycling, with operations ranging from small-scale processors to large-scale facilities.

  • Industry processes approximately 150,000 metric tons of spent batteries annually (USGS, 2022)
  • Includes both primary (virgin material production) and secondary (recycled material) battery supply chains
  • Covers battery transportation, storage, mechanical processing, hydrometallurgy, and refining

Market Structure and Operators

Who operates in the industry and how is it structured?

The US battery recycling market features a mix of established industrial players and specialized recycling companies, with operations concentrated in regions with high battery density and favorable regulations. The industry is seeing increased investment from automotive and battery manufacturers.

  • Industry includes approximately 50 operational recycling facilities across 25 states (DOE, 2023)
  • Three primary processing methods: pyrometallurgy, hydrometallurgy, and direct recycling
  • Total estimated workforce of 3,000-5,000 employees (Bureau of Labor Statistics, 2022)
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Demand Drivers

What drives demand in the industry?

The primary demand driver is the rapid adoption of electric vehicles, which has increased the volume of spent lithium-ion batteries entering the waste stream. Environmental regulations and corporate sustainability goals are also significant factors.

  • Electric vehicle sales reached 1.4 million units in 2022 (EPA, 2023), increasing battery supply
  • US generated approximately 11 million tons of battery waste in 2021 (EPA, 2022)
  • Federal tax incentives support domestic processing of recycled materials (Inflation Reduction Act, 2022)

Competitive Landscape and Notable Public Companies

Who are the notable companies in the industry?

The competitive landscape includes multinational companies with US operations alongside specialized recycling firms. Recent years have seen significant investments and strategic partnerships across the sector.

  • Redwood Materials - Operates recycling facility in Nevada and Nevada
  • Li-Cycle Recycling Solutions - Operates facilities in Ontario, Canada with US expansion
  • Retriev Technologies - Ohio-based battery recycler acquired by PureCycle Technologies
  • Call2Recycle - Non-profit stewardship organization with 30,000 collection points

Recent Trends and Outlook

What are the recent trends and outlook?

The industry is experiencing rapid capacity expansion with multiple facilities under construction or announced. Vertical integration between battery manufacturers and recyclers is becoming increasingly common.

  • Over 20 new recycling facilities announced since 2020 (DOE, 2023)
  • Industry capacity expected to triple by 2025 according to recent announcements
  • Direct recycling technologies gaining traction for lithium-ion batteries (NREL, 2022)
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Regulation and Compliance

How is the industry regulated?

Federal regulations increasingly mandate battery recycling and material recovery requirements. States are implementing their own requirements, creating a complex regulatory environment.

  • EPA manages battery handling under Resource Conservation and Recovery Act (RCRA)
  • California requires battery recycling for all electric vehicles (California Battery Recycling Act, 2020)
  • Department of Energy provides funding through Battery Recycling Prize and R&D programs

Sources

Government, statistical and trade sources used for this Claight analysis.

  • US Geological Survey (2022) - Mineral Commodity Summaries: Battery Recycling ·
  • Environmental Protection Agency (2022) - Advancing Sustainable Materials Management: 2021 Fact Sheet ·
  • Environmental Protection Agency (2023) - Electric Vehicle Sales Data ·
  • Department of Energy (2023) - Battery Recycling Report ·
  • Bureau of Labor Statistics (2022) - Occupational Employment Statistics ·
  • National Renewable Energy Laboratory (2022) - Battery Recycling Technology Assessment

Claight analysis of public industry data.