A record 1.2 million U.S. vehicle buyers chose to go electric in 2023, the first time U.S. EV sales reached 1 million in a year. EVs accounted for 7.6 percent of the total U.S. vehicle market last year, up from 5.9 percent in 2022. And, although sales have leveled off a bit in recent months, EV sales are expected to grow 18 percent annually over the next five years, topping $161 billion in 2028.
An ample supply of batteries will be critical for meeting that demand, and not all of them will be made from virgin material. Indeed, recycling EV batteries is becoming big business. The EV battery recycling market was estimated at $2.3 billion in 2022. This sector is forecast to grow at a compound annual rate of 27 percent over the coming years, reaching $9.8 billion in 2028.