Market Overview

The Latin America battery recycling market size reached USD 1.3 Billion in 2025 and is projected to grow to USD 2.2 Billion by 2034. The market is expected to expand at a CAGR of 5.95% during the forecast period of 2026-2034. Growth is driven by rising demand for electric vehicles (EVs) and renewable energy storage solutions, supported by increased clean energy investments. Effective lithium-ion battery recycling is crucial for resource reclamation and promoting sustainable energy alternatives in the region.

Study Assumption Years

  • Base Year: 2025
  • Historical Year/Period: 2020-2025
  • Forecast Year/Period: 2026-2034

Latin America Battery Recycling Market Key Takeaways

  • The Latin America battery recycling market size reached USD 1.3 Billion in 2025.
  • The market is projected to grow at a CAGR of 5.95% during 2026-2034.
  • The forecast period is 2026-2034.
  • Electric vehicle sales in Latin America increased by 60% in 2024, driving battery recycling demand.
  • Recycling lithium-ion batteries reclaims materials like lithium, cobalt, and nickel, reducing environmental impact.
  • The International Finance Corporation (IFC) invested $40 Billion in Brazil in 2024 to support solar DG projects, indicating a rise in renewable energy storage demand.
  • The market segments include type, source, end-use, and material, reflecting diverse battery recycling applications.

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Market Growth Factors

The Latin America battery recycling market is driven by the increasing demand for electric vehicles and renewable energy storage systems․ According to the Latin American Energy Organization (Olade), the amount of electric vehicles sold in Latin America increased 60% in 2024, indicating a meaningful trend towards electric mobility․ Meanwhile, regional governments have adopted more stringent rules and guidelines for emissions and have promoted the adoption of cleaner alternative energy․ In addition to EVs, lithium-ion batteries are also used to store generated solar, wind and other alternative energy sources․ As a result, there is an increasing need for efficient recycling processes for the large number of spent batteries․

There is a meaningful amount of funding for renewables available in the market․ In 2024, the IFC allocated $40 Billion to Origo Energia to finance 22 ground-mounted, small-scale solar DG projects of 90 MWp in Brazil․ As renewable energy systems are scaled up, this will likely considerably increase the need for large-scale battery storage to be used to overcome the limitation of renewable energy intermittency, and the importance of battery recycling to recover metals and other materials․

Battery recycling provides reuse of process materials, including a large majority of the most desired materials (lithium, cobalt, and nickel), and reduces the environmental impact of their original mining and extraction․ With growing EV infrastructure and government incentives to reduce environmental impact through green technology, the battery waste market and battery recycling distribution continue to grow․ Companies in the battery recycling market expect to benefit as governments approach resource management and sustainable energy in new ways․

Market Segmentation

  • Type: Lead-acid Batteries, Nickel-based Batteries, Lithium-based Batteries, Others. These categories reflect different battery chemistries processed in recycling across Latin America.
  • Source: Industrial, Automotive, Consumer Products, Electronic Appliances, Others. The market analyzes battery recycling sources for various industrial and consumer applications.
  • End-Use: Reuse, Repackaging, Extraction, Others. This segmentation describes recycling processes and applications that extend battery life or recover valuable components.
  • Material: Manganese, Iron, Lithium, Nickel, Cobalt, Lead, Aluminium, Others. The market studies the recovery and reuse of essential battery materials vital for sustainable production.

Regional Insights

Brazil, Mexico, Argentina, Colombia, Chile, Peru, and other regions form the major markets in Latin America. Brazil is notably significant with major investments such as IFC’s $40 Billion financing for solar projects, indicating regional leadership in renewable energy and associated battery recycling demand. These countries contribute to overall market growth influenced by government policies, clean energy adoption, and rising electric vehicle sales.

Recent Developments & News

In February 2024, the Inter-American Development Bank (IDB) released the report "Recycling and Reuse of Lithium Batteries in Latin America and the Caribbean: Analytical Review of Global and Regional Practices," providing a comprehensive analysis of lithium battery recycling and reuse strategies across the region. This publication highlights evolving practices and supports improved industry standards.

Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.

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