Cobalt Scrap Recycling
MARKET OVERVIEW:
The market is expanding rapidly due to growing demand from the EV sector and increased emphasis on sustainable supply chains. In 2023, global recycled cobalt production reached 43,408 metric tons, with 83.50% sourced from lithium battery waste. China dominates consumption, accounting for 71.90% of the market in 2023, while companies like GEM and Huayou Holding Group lead production. Apple's commitment to using 100% recycled cobalt in batteries by 2025 further highlights the industry's potential.
MARKET INSIGHT & GROWTH DRIVERS:
2024 CAGR 2032
1443 Million USD 3479 Billion 13.7%
Global cobalt scrap recycling market was valued at USD 1,443 million in 2024 and is projected to reach USD 3,479 million by 2032, exhibiting a CAGR of 13.7% during the forecast period.
MARKET DYNAMICS
Rising Demand for Sustainable Battery Materials to Fuel Cobalt Recycling Growth
Global push toward electrification and renewable energy adoption is driving unprecedented demand for cobalt, particularly in lithium-ion batteries used in electric vehicles (EVs). With cobalt supply constraints persisting in primary mining operations, recycled cobalt has emerged as a critical solution to bridge the deficit. The recycled cobalt market is projected to grow at a robust CAGR of 13.7% through 2032, reaching over $3.4 billion. This growth trajectory is underpinned by major OEM commitments to sustainable sourcing - Apple's pledge to use 100% recycled cobalt in all batteries by 2025 exemplifies this trend. Furthermore, recycled cobalt production has demonstrated remarkable scalability, increasing from 16,460 metric tons in 2019 to 43,408 metric tons in 2023, with lithium battery scraps constituting over 83% of the feedstock.
MARKET OPPORTUNITIES
The evolving regulatory landscape presents significant opportunities for vertically integrated recycling models. Major OEMs are forming strategic alliances with recyclers to secure longterm supply agreements - a trend exemplified by partnerships between auto manufacturers and leading Chinese recyclers. These collaborations are driving innovation in direct recycling processes that promise to reduce costs by 2530% while improving recovery rates beyond 95%. The development of localized recycling hubs in strategic markets like Morocco positions companies to capture emerging regional demand while mitigating geopolitical risks.
COMPANY MISSION
Global shift toward electric vehicles (EVs) has become a pivotal driver for the cobalt scrap recycling market. With cobalt being a critical component in lithium-ion batteries, the demand for recycled cobalt is escalating as manufacturers seek sustainable alternatives to mined materials. In 2023, lithium battery waste accounted for 83.50% of global recycled cobalt production, highlighting the industry's reliance on battery recycling. Major technology companies like Apple have pledged to use 100% recycled cobalt in their batteries by 2025, reinforcing the market's growth trajectory. Furthermore, the projected compound annual growth rate (CAGR) of 9.86% from 2024 to 2030 underscores the rising adoption of recycled cobalt in energy storage applications.
REGIONAL MARKET OUTLOOK
North America
The North American cobalt scrap recycling market is experiencing steady growth, primarily driven by stringent environmental regulations and the rapidly expanding electric vehicle (EV) battery sector. As of 2024, 82% of recycled cobalt in North America comes from used batteries, particularly lithium-ion batteries from EVs and consumer electronics. Companies like Redwood Materials are leading the charge through large-scale recycling initiatives, supported by the U.S. Inflation Reduction Act (IRA) which incentivizes domestic sourcing of battery materials. Challenges persist, however, due to higher operational costs and competition from cheaper imports of refined cobalt from China. Despite this, recycled cobalt demand is projected to grow at a CAGR of 14.2% through 2032, spurred by automakers like Tesla and Ford committing to sustainable supply chains.
Europe
Europe’s cobalt recycling market is shaped by strict EU regulations, including the Battery Regulation (2023) which mandates that by 2035, all EV batteries must contain at least 25% recycled cobalt, rising to 35% by 2040. Key players like Umicore and TES are pioneering closed-loop recycling systems, leveraging advanced hydrometallurgical processes to recover over 95% of cobalt content from scrap. The region benefits from extensive collaborations between automakers and recyclers— examples include Volkswagen partnering with Redwood Materials for end-of-life battery recycling. Challenges include fragmented collection infrastructure, though initiatives like the European Battery Alliance aim to streamline processes. Western Europe accounts for over 65% of the regional market, with Germany leading in recycling capacity.
COMPETITIVE LANDSCAPE
• GEM Co., Ltd.
• Huayou Holding Group
• CNGR Advanced Material
• BRUNP RECYCLING
• Others
These companies represent some of the major key players driving innovation and growth in the market, contributing significantly to global supply and competitive dynamics.
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