Market Overview
The
Battery Recycling Leaching Chemicals Market refers to the production, supply, handling, formulation, and use of chemical reagents required to dissolve, extract, separate, purify, precipitate, and recover valuable metals from spent lithium-ion batteries, battery manufacturing scrap, black mass, cathode production waste, and mixed battery feedstocks. The market includes sulfuric acid, hydrochloric acid, nitric acid, hydrogen peroxide, organic acids, ammonia-based solutions, alkalis, reducing agents, oxidizing agents, pH control chemicals, precipitation reagents, solvent extraction support chemicals, washing chemicals, neutralization chemicals, and closed-loop hydrometallurgical reagents used to recover lithium, nickel, cobalt, manganese, copper, aluminum, graphite, and battery-grade salts. It excludes full recycling equipment, collection logistics, shredding systems, pyrometallurgical furnaces, and cathode manufacturing chemicals unless these chemicals are directly used in leaching, refining, or recovery flows.
The global Battery Recycling Leaching Chemicals Market was valued at US$ 1,360 million in 2025 and is projected to reach US$ 4,180 million by 2032, growing at a CAGR of 17.4% during 2026-2032.
Growth is being driven by rising lithium-ion battery scrap generation, EV battery end-of-life volumes, gigafactory production scrap, black mass refining capacity, critical mineral localization, and expanding hydrometallurgical recycling investments. Battery demand for the energy sector reached the
1 TWh milestone in 2024, while EV battery demand exceeded
950 GWh, creating a rapidly expanding future pool of recyclable battery material.
Commercially, leaching chemicals matter because black mass cannot become battery-grade lithium, nickel, cobalt, manganese, or precursor material without controlled chemical dissolution and separation. Hydrometallurgical recycling uses chemical leaching to dissolve valuable metals from black mass, followed by purification and separation steps. A 2025 hydrometallurgical recycling review notes that leaching is widely used in commercial recycling flowsheets, while another 2025 RSC review states that hydrometallurgy offers advantages over pyrometallurgy in producing purer products, recovering lithium, and handling diverse feedstock compositions.
The market is shifting from simple acid consumption toward chemistry-controlled recovery systems. Sulfuric acid with hydrogen peroxide remains one of the most widely studied and used leaching combinations for NMC-type black mass, while hydrochloric acid, nitric acid, organic acids, methanesulfonic acid, deep eutectic solvents, ammonia-based systems, and bio-leaching concepts are being evaluated for selectivity, lower waste, safety, and cost. Research on black mass leaching shows that sulfuric acid or hydrochloric acid can be effective with hydrogen peroxide, and that sulfuric acid with hydrogen peroxide has been widely studied for extracting lithium, cobalt, nickel, and manganese from NMC cathode material.
What is changing structurally is the move from metal recovery to circular battery material production. BASF’s Schwarzheide black mass plant started commercial operation with annual processing capacity of up to
15,000 tons of end-of-life lithium-ion batteries and production scrap, equal to roughly
40,000 EV batteries per year. Ascend Elements positions its Hydro-to-Cathode process as a route to manufacture advanced battery materials from reclaimed lithium-ion batteries, while RecycLiCo promotes closed-loop, multi-tonne-per-day recycling and upcycling technology designed to integrate within battery factories or recycling operations.
Executive Market Snapshot
| Metric |
Value |
| Market Size in 2025 |
US$ 1,360 million |
| Market Size in 2032 |
US$ 4,180 million |
| CAGR 2026-2032 |
17.4% |
| Largest Chemical Type in 2025 |
Sulfuric Acid and Hydrogen Peroxide Leaching Systems |
| Fastest-Growing Chemical Type |
Organic Acid and Bio-Based Leaching Agents |
| Largest Feedstock Type in 2025 |
NMC and NCA Black Mass |
| Fastest-Growing Feedstock Type |
LFP Black Mass |
| Largest Application in 2025 |
Nickel, Cobalt and Manganese Recovery |
| Fastest-Growing Application |
Lithium Recovery |
| Largest Region in 2025 |
Asia-Pacific |
| Fastest Strategic Growth Region |
North America |
| Most Important Country Market |
China |
| Key Strategic Trend |
Shift from acid leaching for metal recovery toward closed-loop black mass refining and direct-to-precursor chemistry |
| Highest Strategic Priority Theme |
Maximizing lithium, nickel, cobalt and manganese recovery while lowering reagent use, waste streams and refining cost |
Analyst Perspective
The Battery Recycling Leaching Chemicals Market should be viewed as a critical mineral recovery chemistry market rather than a general industrial acid market. Leaching chemicals determine recovery rate, impurity profile, downstream separation cost, wastewater burden, and whether recovered materials can return to battery-grade production. A recycler may start with the same black mass feedstock as a competitor, but different leaching chemistry can produce very different recovery economics.
The most important commercial shift is lithium recovery. Older recycling economics focused heavily on cobalt and nickel because those metals carried higher value. As LFP batteries grow and battery makers focus on domestic lithium supply, leaching systems must recover lithium efficiently even from lower-value chemistries. Recent hydrometallurgical research is increasingly focused on lithium-first extraction, selective leaching, and closed-loop reagent design because lithium recovery has become strategically important even when cobalt content is low.
The second shift is feedstock complexity. Recyclers now receive mixed black mass from NMC, NCA, LFP, LCO, consumer electronics, EV packs, energy storage systems, and factory scrap. Each feedstock responds differently to acid concentration, reductant dosage, temperature, pulp density, and impurity management. This is why online leaching state prediction, selective acid systems, and adaptive process control are gaining research attention. Inorganic acids such as sulfuric and hydrochloric acid are common leaching agents, while organic acids such as citric and ascorbic acid are being explored as lower-impact alternatives.
The third shift is circularity. Chemical systems are being designed not only to extract metals, but to reduce reagent consumption, recycle reagents, and move directly toward precursor or cathode material output. RecycLiCo’s closed-loop positioning and Ascend Elements’ Hydro-to-Cathode model show how leaching chemistry is becoming part of direct battery material manufacturing rather than a standalone waste-treatment step.
Market Dynamics
Market Drivers
Battery Scrap and Black Mass Volumes Are Rising
The strongest driver is the rapid growth of lithium-ion battery production and future end-of-life battery availability. Gigafactory scrap, cathode production waste, defective cells, warranty returns, consumer electronics batteries, EV packs, and energy storage batteries all feed into black mass production. The IEA’s 2024 battery demand milestone of
1 TWh shows the scale of future recycling feedstock that will eventually require hydrometallurgical recovery.
Hydrometallurgy Needs Chemical Leaching to Recover Battery Metals
Hydrometallurgical recycling depends on leaching chemicals to dissolve valuable metals before separation and purification. Reviews of lithium-ion battery recycling identify leaching as a central step for recovering cobalt, nickel, manganese, and lithium from black mass. This directly supports demand for acids, reductants, oxidants, pH modifiers, extractants, and precipitation chemicals.
Sulfuric Acid and Hydrogen Peroxide Systems Remain the Commercial Baseline
Sulfuric acid combined with hydrogen peroxide remains a widely used leaching route because it can achieve strong dissolution of NMC cathode metals. Research shows sulfuric acid or hydrochloric acid can perform effectively when combined with hydrogen peroxide, and hydrogen peroxide commonly functions as a reductant in black mass leaching. Evonik also positions hydrogen peroxide and persulfates as useful in recovering rare and valuable metals during lithium-ion battery recycling.
Organic and Lower-Impact Leaching Agents Are Gaining Attention
Organic acids and greener lixiviants are gaining interest because recyclers need lower environmental impact, lower corrosivity, and more selective recovery. A 2025 comparative study evaluated sulfuric, malic, acetic, citric, and butyric acids with hydrogen peroxide for black mass leaching, while other work highlights methanesulfonic acid and deep eutectic solvent systems as emerging options.
Regional Recycling Capacity Is Expanding
North America and Europe are scaling battery recycling and black mass refining to reduce reliance on imported critical minerals. BASF’s Schwarzheide black mass plant, Redwood’s U.S. battery material supply chain, Ascend Elements’ Hydro-to-Cathode facility, and Li-Cycle’s Spoke and Hub model all point to growing regional demand for leaching and refining chemicals.
Market Restraints
Reagent Cost and Waste Treatment Can Limit Recycling Economics
Leaching chemicals are essential, but reagent cost, wastewater treatment, neutralization, sulfate or chloride management, and impurity removal can reduce recycling margins. Hydrometallurgical recycling research frequently highlights the need to improve economic feasibility, lower chemical consumption, and reduce environmental burden.
LFP Batteries Reduce Cobalt and Nickel Value
LFP batteries contain lithium, iron and phosphate, but not high-value nickel or cobalt. This makes leaching economics more difficult because chemical use must be justified by lithium recovery, lower feedstock cost, or policy support. As LFP volumes increase, leaching chemical suppliers must support lower-cost and more selective processes.
Feedstock Variability Makes Chemistry Control Difficult
Black mass composition varies depending on battery chemistry, state of charge, aging, dismantling method, separator contamination, binder content, aluminum and copper carryover, and graphite content. This variability affects acid demand, gas formation, impurity load, leaching kinetics, and downstream purification.
Safety and Corrosion Risks Increase Plant Complexity
Sulfuric acid, hydrochloric acid, nitric acid, hydrogen peroxide, ammonia, persulfates, and other reagents require strict handling systems. Corrosion-resistant reactors, exhaust treatment, chemical dosing systems, emergency controls, and wastewater systems raise capital and operating costs.
Commercial Scale-Up Is Still Uneven
Many recycling technologies work at pilot or demonstration scale, but full commercial scale requires stable feedstock, reliable chemistry, permits, offtake agreements, and battery-grade output qualification. This creates timing risk for leaching chemical demand in regions where recycling projects are delayed or underutilized.
Market Segmentation Analysis
By Chemical Type
Sulfuric Acid and Hydrogen Peroxide Leaching Systems generated
US$ 475 million in 2025, representing
34.9% of total market revenue, and are projected to reach
US$ 1,310 million by 2032. This segment leads because sulfuric acid and hydrogen peroxide are widely used in NMC and NCA black mass leaching. Hydrogen peroxide helps reduce higher-valence transition metals, improving dissolution of cobalt, nickel, and manganese. Research confirms that sulfuric acid with hydrogen peroxide has been widely studied for extracting lithium, cobalt, nickel, and manganese from spent NMC cathode materials.
Hydrochloric and Nitric Acid Leaching Chemicals generated
US$ 275 million in 2025, representing
20.2% of total market revenue, and are projected to reach
US$ 760 million by 2032. Hydrochloric acid can provide strong metal dissolution and chloride-complex formation, while nitric acid can support oxidative leaching in selected process routes. This segment is important where leaching speed, metal solubility, or specific downstream separation chemistry favors chloride or nitrate systems.
Organic Acid and Bio-Based Leaching Agents generated
US$ 150 million in 2025, representing
11.0% of total market revenue, and are projected to reach
US$ 690 million by 2032, making this the fastest-growing chemical type. This segment includes citric acid, oxalic acid, ascorbic acid, malic acid, acetic acid, methanesulfonic acid, and bio-generated acids. Organic acids are gaining attention because they can reduce environmental impact and improve selectivity in some black mass leaching routes.
Alkali and Ammonia-Based Leaching Chemicals generated
US$ 185 million in 2025, representing
13.6% of total market revenue, and are projected to reach
US$ 520 million by 2032. This segment includes ammonia solutions, sodium hydroxide, ammonium salts, carbonate systems, and alkali-assisted selective leaching. These chemistries are used where selective metal complexation, aluminum removal, lithium recovery, or pH-controlled impurity separation is required.
Reductants, Oxidants, Precipitation and pH Control Chemicals generated
US$ 275 million in 2025, representing
20.2% of total market revenue, and are projected to reach
US$ 900 million by 2032. This includes hydrogen peroxide, sodium metabisulfite, sodium sulfite, persulfates, sodium carbonate, sodium hydroxide, lime, ammonia, oxalic acid, phosphate reagents, and other process chemicals used after or during leaching. Demand is rising because recyclers increasingly need tighter impurity control and battery-grade output.
By Feedstock Type
NMC and NCA Black Mass generated
US$ 560 million in 2025, representing
41.2% of total market revenue, and is projected to reach
US$ 1,560 million by 2032. This segment leads because NMC and NCA black mass contains high-value nickel, cobalt, manganese, and lithium, making chemical leaching economically attractive. Hydrometallurgical recycling research often focuses on these chemistries because they contain high-value recoverable metals.
LFP Black Mass generated
US$ 210 million in 2025, representing
15.4% of total market revenue, and is projected to reach
US$ 880 million by 2032, making it the fastest-growing feedstock type. LFP recycling is rising because LFP batteries are expanding rapidly in EVs and stationary storage. The challenge is that LFP lacks nickel and cobalt, so leaching systems must become cheaper and more selective for lithium recovery.
LCO Consumer Battery Black Mass generated
US$ 185 million in 2025, representing
13.6% of total market revenue, and is projected to reach
US$ 390 million by 2032. LCO-rich consumer electronics batteries remain attractive because of cobalt content. Demand is steady, but growth is slower than EV and energy storage feedstock because consumer battery volumes are smaller than future EV battery flows.
Mixed EV and Energy Storage Battery Scrap generated
US$ 240 million in 2025, representing
17.6% of total market revenue, and is projected to reach
US$ 750 million by 2032. This segment includes mixed battery chemistries from EV packs, storage modules, warranty returns, and second-life battery retirements. Mixed feedstock creates higher chemical complexity because recyclers must manage aluminum, copper, graphite, LFP, NMC, NCA, and electrolyte residues together.
Battery Manufacturing Scrap and Production Waste generated
US$ 165 million in 2025, representing
12.1% of total market revenue, and is projected to reach
US$ 600 million by 2032. This segment includes electrode scrap, cell scrap, cathode production waste, formation rejects, and gigafactory off-spec material. It is attractive because it is cleaner, more predictable, and available before large end-of-life EV volumes arrive.
By Application
Nickel, Cobalt and Manganese Recovery generated
US$ 490 million in 2025, representing
36.0% of total market revenue, and is projected to reach
US$ 1,310 million by 2032. This remains the largest application because NMC and NCA recycling still provides strong economic value. Leaching chemicals dissolve these metals into solution before solvent extraction, precipitation, crystallization, or precursor production.
Lithium Recovery generated
US$ 340 million in 2025, representing
25.0% of total market revenue, and is projected to reach
US$ 1,210 million by 2032, making this the fastest-growing application. Lithium recovery is becoming more important as lithium demand rises and LFP batteries increase black mass volumes. Closed-loop research and commercial process development are increasingly focused on recovering lithium earlier and more selectively.
Direct-to-Precursor and pCAM Production generated
US$ 210 million in 2025, representing
15.4% of total market revenue, and is projected to reach
US$ 730 million by 2032. This segment includes leaching systems designed to convert black mass directly into precursor cathode active material or battery-grade intermediate products. Ascend Elements’ Hydro-to-Cathode process is one of the clearest examples of this direct materials pathway.
Graphite and Copper-Aluminum Separation Support generated
US$ 155 million in 2025, representing
11.4% of total market revenue, and is projected to reach
US$ 390 million by 2032. This includes chemicals used to separate graphite-rich residues, dissolve or remove aluminum and copper impurities, clean current collector residues, and support downstream graphite recovery. Interest is rising as recyclers try to recover more than only cathode metals.
Closed-Loop Battery Materials Manufacturing generated
US$ 165 million in 2025, representing
12.1% of total market revenue, and is projected to reach
US$ 540 million by 2032. This segment includes reagent systems designed for lower waste, reagent reuse, direct precursor output, and integration with cathode or anode material production. RecycLiCo’s closed-loop technology platform and Umicore’s recycling technology, which can recover lithium, nickel, cobalt and copper into battery-grade form, reflect this direction.
Regional Analysis
North America Battery Recycling Leaching Chemicals Market
North America generated
US$ 230 million in 2025, representing
16.9% of global market revenue, and is projected to reach
US$ 930 million by 2032, making it the fastest strategic growth region. Growth is being driven by U.S. battery recycling projects, domestic critical mineral policy, EV manufacturing, gigafactory scrap availability, and demand for localized battery material refining. Redwood Materials states that it is building a domestic battery supply chain to recycle lithium-ion batteries, refine critical minerals, and remanufacture new battery materials.
North America’s strongest chemical demand will come from sulfuric acid and hydrogen peroxide systems, lithium recovery reagents, pH control chemicals, black mass refining chemicals, and direct-to-precursor process reagents. Ascend Elements’ Hydro-to-Cathode platform and RecycLiCo’s closed-loop process both support growth in more chemistry-intensive recycling pathways.
USA Battery Recycling Leaching Chemicals Market
The USA generated
US$ 195 million in 2025 and is projected to reach
US$ 820 million by 2032. The U.S. is the largest North American market because of battery manufacturing scrap, domestic recycling investments, EV battery plants, and critical mineral localization. Redwood Materials, Ascend Elements, Li-Cycle assets, Cirba Solutions, Aqua Metals, and several regional recyclers support long-term reagent demand.
The U.S. opportunity will be strongest in lithium recovery, NMC recovery, direct-to-precursor processing, and closed-loop leaching systems. Ascend Elements’ Kentucky pCAM facility is designed to produce engineered battery materials for up to
750,000 EV batteries annually when operational, supporting demand for advanced recycling and refining chemicals.
Europe Battery Recycling Leaching Chemicals Market
Europe generated
US$ 205 million in 2025, representing
15.1% of global market revenue, and is projected to reach
US$ 670 million by 2032. Europe is expanding recycling capacity because of battery regulation, local cathode material demand, EV battery production, and circular economy policy. BASF’s Schwarzheide plant is one of the most important European black mass developments, with up to
15,000 tons of annual processing capacity.
European demand will prioritize lower-impact leaching agents, strong wastewater control, traceable black mass refining, and recovery of lithium, nickel, cobalt and manganese into battery-grade products. BASF’s battery recycling partner network covers collection, dismantling, black mass production and refining, showing how Europe is building an integrated recycling chain.
Germany Battery Recycling Leaching Chemicals Market
Germany generated
US$ 70 million in 2025 and is projected to reach
US$ 245 million by 2032. Germany is Europe’s leading market because of BASF’s recycling operations, automotive battery demand, chemical industry capability, and cathode material supply-chain development. Demand is strongest in black mass refining chemicals, sulfuric acid systems, pH control chemicals, and hydrometallurgical process reagents.
German buyers are expected to prioritize environmental compliance, high recovery rates, process safety, and integration between recycling and cathode material production.
France Battery Recycling Leaching Chemicals Market
France generated
US$ 34 million in 2025 and is projected to reach
US$ 118 million by 2032. France is an emerging recycling chemicals market supported by EV battery localization, recycling partnerships, and European battery material policy. Demand will grow through black mass processing, battery manufacturing scrap recycling, and regional hydrometallurgical refining projects.
The strongest opportunities will be organic acids, low-emission reagent systems, lithium recovery chemicals, and pCAM-linked recycling flows.
Asia-Pacific Battery Recycling Leaching Chemicals Market
Asia-Pacific generated
US$ 925 million in 2025, representing
68.0% of global market revenue, and is projected to reach
US$ 2,580 million by 2032. The region leads because China, South Korea, Japan, and Southeast Asia have the largest battery production base, strong black mass generation, deep cathode material supply chains, and established hydrometallurgical recycling capacity.
China is the largest market because it has the deepest battery recycling ecosystem and the largest EV battery manufacturing base. South Korea and Japan are important because of premium battery manufacturers and cathode material companies. India and Southeast Asia are emerging markets where battery recycling will grow alongside electric mobility and stationary storage.
Japan Battery Recycling Leaching Chemicals Market
Japan generated
US$ 90 million in 2025 and is projected to reach
US$ 235 million by 2032. Japan is a high-value market because of battery materials expertise, electronics recycling, automotive battery supply chains, and advanced process chemistry. Demand is concentrated in high-recovery hydrometallurgical routes, cobalt and nickel recovery, lithium recovery, and specialty reagent systems.
Japanese companies are expected to focus on process safety, high purity output, and lower-waste chemical routes rather than only bulk reagent volume.
China Battery Recycling Leaching Chemicals Market
China generated
US$ 560 million in 2025 and is projected to reach
US$ 1,610 million by 2032, making it the largest country market. China dominates battery manufacturing, battery recycling feedstock, black mass processing, and hydrometallurgical refining. Demand is broad across sulfuric acid, hydrochloric acid, hydrogen peroxide, alkalis, precipitation reagents, and solvent extraction support chemicals.
China’s recycling chemistry will increasingly shift toward LFP recycling and lithium recovery as LFP battery volumes grow. Reagent suppliers that can support low-cost lithium recovery from LFP and mixed black mass will gain share.
South Korea Battery Recycling Leaching Chemicals Market
South Korea generated
US$ 125 million in 2025 and is projected to reach
US$ 365 million by 2032. South Korea is strategically important because of its battery cell makers, cathode material producers, and high-nickel battery ecosystem. Demand is strongest in NMC and NCA black mass leaching, nickel and cobalt recovery, lithium recovery, and pCAM-linked refining.
South Korean buyers will prioritize high recovery rates, low impurity output, and compatibility with cathode precursor manufacturing.
India Battery Recycling Leaching Chemicals Market
India generated
US$ 45 million in 2025 and is projected to reach
US$ 180 million by 2032. India is an emerging battery recycling chemicals market supported by electric two-wheelers, stationary storage, consumer electronics waste, and growing interest in lithium recovery. Recent Indian research has highlighted selective lithium extraction from black powder using anthraquinone salt and hydrogen peroxide, showing local innovation in lower-impact lithium recovery routes.
India’s near-term demand will focus on consumer battery scrap, LFP batteries, lithium recovery, and low-cost hydrometallurgical chemical systems.
Competitive Landscape
The Battery Recycling Leaching Chemicals Market is fragmented at the reagent supply level but increasingly organized around battery recycling technology developers, black mass refiners, cathode material producers, and specialty chemical suppliers. Competition is based on recovery efficiency, reagent cost, selectivity, waste generation, safety, impurity control, process scalability, and compatibility with battery-grade output.
Major ecosystem participants include BASF, Umicore, Redwood Materials, Ascend Elements, RecycLiCo, Li-Cycle, Fortum Battery Recycling, Cirba Solutions, Aqua Metals, Glencore-linked recycling flows, Evonik, Solvay, chemical acid suppliers, hydrogen peroxide producers, alkali producers, and specialty reagent companies. BASF and Umicore are important in Europe, Redwood and Ascend Elements are important in North America, and Chinese recyclers dominate Asia-Pacific volume.
The next competitive phase will be shaped by selective lithium recovery, LFP recycling, reagent recycling, and direct-to-cathode material production. Suppliers that only sell bulk acid will remain relevant, but higher-value demand will go to companies that support optimized reagent packages, lower chemical consumption, closed-loop flows, and battery-grade product recovery.
Key Company Profiles
BASF
BASF is one of the most important companies shaping the European Battery Recycling Leaching Chemicals Market. Its Schwarzheide black mass plant started commercial operation with annual processing capacity of up to
15,000 tons of end-of-life lithium-ion batteries and production scrap.
BASF’s strategic relevance comes from its integrated battery materials position. The company’s recycling network covers logistics, discharging, dismantling, black mass production, and refining, allowing recovered materials to feed back into cathode active material production.
Umicore
Umicore is a major battery recycling and materials company with advanced recycling operations. The company states that its technology can recover lithium, nickel, cobalt and copper into battery-grade form.
Umicore’s recycling model combines thermal and hydrometallurgical steps, making it relevant to both black mass refining and chemical separation. Its long-term position is strongest where recycled metals need to return to high-purity battery material production.
Redwood Materials
Redwood Materials is a leading North American battery recycling and materials company. It states that it is building a domestic battery supply chain to recycle lithium-ion batteries, refine critical minerals, and remanufacture new battery materials.
Redwood’s relevance to leaching chemicals comes from its integrated recovery and refining model. As it scales domestic critical mineral recovery, demand rises for hydrometallurgical reagents, purification chemicals, precipitation reagents, and closed-loop process chemicals.
Ascend Elements
Ascend Elements is a key player in direct-to-precursor recycling. The company manufactures advanced battery materials using valuable elements reclaimed from discarded lithium-ion batteries through its Hydro-to-Cathode process.
Ascend’s strategic strength is its focus on converting battery waste into high-value battery materials rather than only recovering intermediate salts. Its Kentucky pCAM facility is designed to produce engineered battery materials for up to
750,000 EV batteries annually when operational.
RecycLiCo Battery Materials
RecycLiCo is important because of its closed-loop lithium-ion battery recycling and upcycling platform. The company promotes a modular Clean Spot plant concept that can be integrated on-site within battery factories or recycling operations.
RecycLiCo’s approach is relevant to leaching chemicals because closed-loop processing can reduce reagent waste, simplify material recovery, and support direct battery material production.
Li-Cycle
Li-Cycle is relevant through its Spoke and Hub recycling model. Its Spokes convert lithium-ion batteries and manufacturing scrap into black mass, which is expected to be processed at Hub facilities into critical battery materials.
Li-Cycle’s Hub concept is important to the leaching chemicals market because black mass refining requires hydrometallurgical dissolution, purification, and precipitation chemicals.
Evonik
Evonik is relevant as a chemical supplier to battery recycling. The company states that hydrogen peroxide and persulfates are positioned to aid recovery of rare and valuable metals during lithium-ion battery recycling.
Evonik’s role is strongest in oxidants and reductant-linked leaching support chemicals, especially where recyclers need controlled metal dissolution and process efficiency.
Recent Developments
- In June 2025, BASF started commercial operation of its black mass recycling plant in Schwarzheide, Germany. The plant can process up to 15,000 tons of end-of-life lithium-ion batteries and production scrap per year, equal to about 40,000 EV batteries.
- In 2025, Ascend Elements continued developing its Hydro-to-Cathode battery recycling model, with its Kentucky facility planned to produce engineered battery materials for up to 750,000 EV batteries annually when operational.
- In 2025-2026, RecycLiCo continued positioning its Clean Spot platform as a closed-loop, multi-tonne-per-day lithium-ion battery recycling and upcycling process that can be integrated into battery factories or recycling operations.
- In 2025, research on black mass leaching continued to compare sulfuric acid, malic acid, acetic acid, citric acid and butyric acid with hydrogen peroxide, showing increased interest in alternative and organic leaching systems.
- In 2025, research on methanesulfonic acid showed that MSA can be used as a lixiviant for leaching lithium, nickel, cobalt and manganese from black mass under optimized conditions, supporting the development of alternative acid systems.
Strategic Outlook
The
Battery Recycling Leaching Chemicals Market is positioned for strong growth through 2032 as battery manufacturing scrap, EV battery retirements, LFP recycling, black mass refining, and critical mineral localization increase demand for hydrometallurgical reagents. Sulfuric acid and hydrogen peroxide systems will remain the largest chemical category because they are proven, scalable, and effective for NMC and NCA black mass. Organic acid and bio-based leaching agents will grow fastest as recyclers pursue lower environmental impact, better selectivity, and cleaner waste profiles.
The next phase of competition will be defined by lithium recovery and closed-loop chemistry. As LFP black mass volumes rise, recyclers will need lower-cost chemistry that can recover lithium profitably even without cobalt and nickel credits. At the same time, direct-to-precursor and Hydro-to-Cathode models will increase demand for process chemicals that create battery-grade outputs with fewer steps.
By 2032, Asia-Pacific should remain the largest region because China dominates battery production and recycling volumes. North America should grow fastest as Redwood Materials, Ascend Elements, RecycLiCo, Li-Cycle-linked assets, and other recyclers expand domestic critical mineral recovery. Europe will remain a high-value growth region because of circular battery regulation and BASF’s Schwarzheide recycling platform. Companies best positioned to win will be those that combine acid and reductant supply, organic and selective leaching systems, pH control, precipitation chemistry, wastewater treatment, reagent recycling, and close technical partnerships with black mass refiners and cathode material producers.
