EV BATTERY MARKET
Market Status
Global Market
The global market for recycled EV batteries is experiencing rapid growth due to the increasing adoption of electric vehicles (EVs). According to Custom Market Insights (CMI), the global recycled EV battery market was estimated at $255 million in 2021, expected to reach $1.23 billion in 2022, and is projected to grow to about $92 billion by 2030. This represents a compound annual growth rate (CAGR) of 45.2% from 2022 to 2030.
The significant growth of the electric vehicle sector in the Asia Pacific region is leading to a strong demand for recycled EV batteries. In 2021, the Asia Pacific region accounted for more than 35% of the global second-hand EV battery market share, leading the global market. This share is expected to increase during the forecast period, with China being the leading contributor to the demand for used EV batteries in the region. This market growth is driven by various factors and is expected to continue at a substantial pace.
Domestic Market
The future of scrapyards is closely linked to the rise in electric vehicle (EV) battery disposal needs. The increase in EV adoption has led to a growing market for spent batteries. It started in South Korea around 2013, with significant increases in EV numbers, especially after 2020, with more than 100,000 new registrations per year. EV batteries typically need replacement when they retain 70-80% of their original capacity, which can occur within 5 to 20 years of use.
By 2025, it's expected that around 30,000 used EV batteries will need disposal in South Korea alone, with this number expected to rise to 100,000 by 2030. Globally, by 2040, there could be as much as 7.8 million tons of spent batteries, translating to a market size of around 80 trillion KRW. The disposal process includes collection, sorting, processing, distribution, and sales, with scrapyards playing a crucial role in the collection, sorting, and processing stages.
Scrapyards are becoming the initial contact point for securing spent batteries and could play a critical role in the battery recycling value chain, especially at the front-end. The industry's focus should be on the 'collection and sorting' processes. Unlike traditional recycling, where the main issue is the lack of recycling initiatives or improper disposal, spent EV batteries are highly likely to be recycled due to cost and legal issues, as there's almost no such thing as an unrecyclable spent EV battery.
Therefore, the ability to efficiently sort and appraise these numerous recyclable materials and distribute them to appropriate demand channels becomes a key question unique to the spent battery market. Scrapyards are positioned to become central in the future battery recycling value chain, potentially leading to increased market share and operational transparency, which could increase their chances of being designated as official collection centers by the government.
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