Lithium Battery Recycling Supply

May 30, 2025

The battery recycling supply chain just shifted into overdrive.

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While everyone debates EV adoption rates, a massive opportunity is building in plain sight: an avalanche of lithium battery recycling feedstock hitting recycling markets.

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The numbers tell the story. 1.35 million tons of lithium-ion battery scrap projected for 2025. By 2035? 4.5 million tons. Most of it coming from production scrap as gigafactories scale at breakneck speed, then shifting to end-of-life batteries as the first wave of EVs reaches retirement.

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Here's what makes this interesting: LFP batteries are 64% of battery manufacturing this year. These workhorses are taking over energy storage and EV systems because they're cheap, safe, and reliable. By 2035, LFP will contribute roughly 2 million tons of recycling feedstock volume.

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The catch? LFP batteries lack the high-value metals like cobalt and nickel that make traditional recycling profitable. No precious metals, lower margins. This forces the industry to innovate or get left behind.

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Smart recyclers are already adapting. Direct recycling methods. Process optimization. Volume-based economics instead of value-per-unit plays. The companies that crack this code won't just survive the LFP wave—they'll ride it to dominance.

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The feedstock is abundant. The technology is evolving. The question isn't whether this market will explode, it's who will be ready when it does.

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We look forward to making progress on this effort and keeping you updated along the way.

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