Indonesia Battery Recycling Market Size, Share, Trends and Forecasts 2031

Key Findings

• The Indonesia Battery Recycling Market is expanding rapidly due to rising battery waste generation and strong regulatory pressure.

• Accelerating adoption of electric vehicles is significantly increasing end-of-life battery volumes.

• Growing demand for critical raw materials such as lithium, cobalt, and nickel is driving recycling investments.

• Governments are enforcing extended producer responsibility regulations across Indonesia.

• Technological advancements in hydrometallurgical and direct recycling processes are improving recovery efficiency.

• Battery manufacturers are increasingly integrating recycling into supply chain strategies.

• Circular economy initiatives are strengthening long-term market fundamentals.

• Strategic partnerships between recyclers, OEMs, and battery producers are accelerating market development.

Indonesia Battery Recycling Market Size and Forecast

The Indonesia Battery Recycling Market is projected to grow from USD 19.6 billion in 2025 to USD 47.8 billion by 2031, registering a CAGR of 15.9% during the forecast period. Market growth is driven by the rapid increase in lithium-ion battery usage across electric vehicles, consumer electronics, and energy storage systems. Rising concerns over raw material scarcity and price volatility are accelerating recycling adoption. Regulatory mandates are compelling manufacturers to establish closed-loop battery systems. Advancements in recycling efficiency are improving economic viability. As battery deployment scales across Indonesia, recycling infrastructure is becoming a critical pillar of the energy transition ecosystem.

Introduction

Battery recycling involves the collection, processing, and recovery of valuable materials from spent batteries for reuse in new battery production or other applications. It plays a vital role in reducing environmental impact, minimizing landfill waste, and securing critical mineral supply. In Indonesia, battery recycling is gaining strategic importance due to rapid electrification and energy storage deployment. Recycling processes recover metals such as lithium, cobalt, nickel, lead, and manganese. Technological innovation is improving material purity and recovery rates. As sustainability priorities intensify, battery recycling is becoming an essential component of modern energy systems.

Future Outlook

By 2031, the Indonesia Battery Recycling Market is expected to transition from fragmented operations to industrial-scale, integrated recycling ecosystems. Growing EV penetration will result in a sharp rise in end-of-life battery volumes. Advanced recycling technologies will enable higher material recovery and lower environmental impact. OEMs will increasingly rely on recycled materials to stabilize supply chains. Regulatory frameworks will continue tightening, making recycling mandatory. Overall, battery recycling will evolve into a strategic industry supporting energy security and sustainability objectives in Indonesia.

Indonesia Battery Recycling Market Trends

• Rapid Expansion of Lithium-Ion Battery Recycling Capacity
  Lithium-ion battery recycling capacity is expanding rapidly across Indonesia due to surging EV and energy storage adoption. Recycling facilities are scaling operations to handle increasing battery volumes. Investments are focused on improving throughput and recovery efficiency. Specialized recycling lines are being developed for different battery chemistries. Industrial-scale plants are replacing small, fragmented facilities. This trend is reshaping the market toward large-capacity operations.

• Shift Toward Advanced Hydrometallurgical Recycling Processes
  Hydrometallurgical processes are gaining preference in Indonesia due to higher recovery rates and lower emissions. These processes enable selective extraction of valuable metals. Compared to pyrometallurgy, hydrometallurgy offers improved material purity. Companies are optimizing solvent extraction and leaching techniques. Reduced energy consumption improves sustainability credentials. This shift is driving technological differentiation in the market.

• Integration of Recycling into Battery Supply Chains
  Battery recycling is increasingly integrated into OEM and battery manufacturer supply chains in Indonesia. Closed-loop recycling models are gaining traction. Manufacturers are securing recycled materials for new battery production. Vertical integration improves cost stability and resource security. Long-term recycling contracts are becoming common. This trend is strengthening circular economy adoption.

• Rising Focus on Direct Recycling Technologies
  Direct recycling approaches are emerging as a promising trend in Indonesia. These methods preserve cathode materials instead of breaking them down into metals. Direct recycling reduces processing steps and energy use. Material performance retention is improved. Pilot projects are transitioning toward commercialization. This innovation is shaping future recycling efficiency.

• Growing Emphasis on Sustainable and Low-Carbon Recycling
  Sustainability is becoming a core focus of battery recycling operations in Indonesia. Companies are adopting low-emission processing techniques. Renewable energy is increasingly used in recycling plants. Environmental impact reporting is gaining importance. Customers prefer recycled materials with lower carbon footprints. Sustainability-driven differentiation is influencing competitive positioning.

Market Growth Drivers

• Surging Electric Vehicle Adoption
  Rapid EV adoption in Indonesia is the primary driver of battery recycling demand. EV batteries generate large volumes of end-of-life waste. Increasing vehicle lifecycles are now reaching recycling stages. Government EV incentives accelerate deployment. Recycling is essential for managing battery waste responsibly. EV growth strongly supports market expansion.

• Rising Demand for Critical Battery Materials
  Demand for lithium, cobalt, and nickel is driving recycling investments in Indonesia. Mining constraints and geopolitical risks increase supply uncertainty. Recycling offers a domestic source of critical materials. Manufacturers seek to reduce dependence on imports. Price volatility encourages material recovery. Resource security concerns are fueling recycling growth.

• Stringent Environmental and Waste Management Regulations
  Regulations in Indonesia mandate responsible battery disposal and recycling. Extended producer responsibility laws enforce compliance. Penalties for improper disposal are increasing. Regulatory clarity improves investment confidence. Government oversight is strengthening enforcement. Regulation remains a powerful market driver.

• Economic Benefits of Recovered Materials
  Recycling enables cost savings through recovered materials in Indonesia. Recycled metals reduce raw material procurement costs. Improved recovery efficiency enhances profitability. Closed-loop systems improve supply predictability. Economic incentives support adoption. Financial benefits are driving industry participation.

• Growth of Energy Storage Systems
  Expansion of stationary energy storage systems in Indonesia increases battery recycling volumes. Grid-scale storage batteries have defined lifecycles. Recycling is planned from project inception. Energy storage deployment adds new recycling streams. Market diversification strengthens demand. Storage growth complements EV-driven recycling.

Challenges in the Market

• High Capital Investment Requirements
  Battery recycling facilities require substantial capital investment in Indonesia. Advanced processing equipment increases upfront costs. Facility permitting and compliance add expense. Smaller players face entry barriers. Long payback periods deter investment. Capital intensity remains a major challenge.

• Complexity of Battery Chemistries and Designs
  Diverse battery chemistries complicate recycling processes in Indonesia. Variations require customized processing lines. Disassembly complexity increases labor costs. Design evolution outpaces recycling standardization. Process inefficiencies reduce margins. Complexity challenges operational scalability.

• Logistics and Collection Infrastructure Gaps
  Efficient battery collection remains challenging in Indonesia. Transportation of hazardous materials requires compliance. Fragmented collection networks limit feedstock availability. Reverse logistics costs are high. Rural and remote areas face access issues. Collection inefficiency constrains recycling growth.

• Safety Risks in Battery Handling and Processing
  Battery recycling poses fire and explosion risks in Indonesia. Improper handling can cause thermal runaway. Specialized safety systems are required. Training and compliance increase operational costs. Safety incidents affect public perception. Risk management is critical for industry growth.

• Regulatory Fragmentation Across Regions
  Regulatory inconsistency creates uncertainty for recyclers in Indonesia. Different regions impose varying compliance requirements. Cross-border battery movement faces restrictions. Administrative complexity slows expansion. Harmonization efforts are ongoing but incomplete. Regulatory fragmentation remains a challenge.

Indonesia Battery Recycling Market Segmentation

By Battery Type

• Lithium-Ion Batteries

• Lead-Acid Batteries

• Nickel-Based Batteries

• Others

By Recycling Process

• Hydrometallurgical

• Pyrometallurgical

• Mechanical

• Direct Recycling

By Source

• Electric Vehicles

• Consumer Electronics

• Industrial Batteries

• Energy Storage Systems

By End-Use

• Automotive

• Energy and Utilities

• Electronics Manufacturers

• Industrial Applications

Leading Key Players

• Umicore

• Li-Cycle Holdings

• Redwood Materials

• Glencore

• Ecobat

• Ganfeng Lithium

• CATL

• TES

• Contemporary Amperex Technology

• SungEel HiTech

Recent Developments

• Umicore expanded battery recycling capacity in Indonesia to support EV material recovery.

• Li-Cycle Holdings commissioned advanced hydrometallurgical facilities in Indonesia.

• Redwood Materials secured partnerships with OEMs in Indonesia for closed-loop recycling.

• Glencore invested in battery recycling infrastructure in Indonesia targeting critical metals.

• CATL integrated recycling operations into battery manufacturing facilities in Indonesia.

This Market Report Will Answer the Following Questions

1. What is the projected market size and growth rate of the Indonesia Battery Recycling Market by 2031?

2. Which battery types and recycling processes dominate the market in Indonesia?

3. How are EV adoption and material shortages influencing recycling demand?

4. What are the major challenges affecting large-scale battery recycling operations?

5. Who are the leading players driving innovation in the Indonesia Battery Recycling Market?