Battery Recycling M&A and Partnerships 2024-2026: Consolidation and Integration

Battery Recycling: timeline

Sources: the numbered public sources listed below.

The deals so far

The battery recycling market has seen significant M&A and partnership activity from 2024 to 2026. Glencore made a $75 million strategic investment in March 2024 to enhance an existing long-term partnership [5][6][7][8]. Redwood Materials completed a $425 million Series E financing round by October 2025, attracting Google as a new investor [3][4]. Aqua Metals initially pursued an acquisition of Lion Energy, LLC for up to $94.9 million in February 2026, but this deal did not proceed under the initial terms by May 2026 [9][10]. However, Aqua Metals later signed a Letter of Intent with WMC in August 2026 for lithium carbonate output valued at approximately $135 million [11]. RecycLiCo Battery Materials Inc. invested $1,000,000 in Type One Energy Group in September 2026 [16][17][18]. Our published market figures indicate the market was worth $16.5 billion in 2025 and is forecast to reach $72.8 billion by 2035, a CAGR of 16.0%.

Why companies are buying and partnering

Companies are engaging in M&A and partnerships to secure critical materials, enhance sustainability, and integrate operations across the battery supply chain. Redwood Materials' Series E financing aims to accelerate its energy storage platform and strengthen its integrated recycling and critical minerals business [3][4]. The proposed collaboration between Aqua Metals and American Battery Factory in February 2026 sought to co-locate recycling and manufacturing facilities [15]. Redwood Materials expanded its partnership with Rivian in October 2026 to recycle battery scrap and provide stationary battery storage [12][13]. These moves reflect a drive towards circular economy models and efficient resource management within the rapidly growing battery sector.

Who is consolidating, and what they gain

Companies like Redwood Materials and Aqua Metals are actively consolidating and forming strategic alliances. Redwood Materials gained significant capital and a new investor, Google, through its $425 million Series E financing, enabling expansion of its integrated recycling and critical minerals business [3][4]. Its partnerships with Rivian and General Motors aim to secure battery scrap for recycling and deploy repurposed battery packs for energy storage, saving over $3 million on electricity bills [12][13][14]. Aqua Metals' LOI with WMC secures an illustrative potential gross value of approximately $135 million for its lithium carbonate output, indicating a focus on commercializing its recycling technology [11]. These actions aim to create more robust, vertically integrated, and sustainable supply chains.

What the deals signal for capacity, prices and competition

The recent deals signal an increase in battery recycling capacity and a focus on securing critical material supply. Partnerships like Redwood Materials' with Rivian and General Motors indicate a growing demand for efficient recycling and repurposing of end-of-life batteries [12][13][14]. The $135 million LOI between Aqua Metals and WMC for lithium carbonate output suggests a move towards commercial-scale production and potential impact on lithium prices and availability [11]. The strategic investments and collaborations are likely to intensify competition as companies vie for market share in this expanding sector, while also potentially stabilizing prices for recycled materials through increased supply and efficiency.

Where the next deals could come from

Future deals are likely to emerge from the need for enhanced sustainability, further supply chain integration, and government funding initiatives. RecycLiCo Battery Materials formed strategic partnerships in 2024 to pursue government funding opportunities in the United States and Canada [20][21]. The investment by RecycLiCo Battery Materials Inc. in Type One Energy Group in September 2026 reflects a commitment to advancing technologies in critical materials and advanced energy sectors [16][17][18]. We expect more collaborations between recycling companies and battery manufacturers, as well as energy storage solution providers, to optimize resource utilization and reduce environmental impact. The focus will remain on securing access to critical minerals and developing innovative recycling technologies.

What it means for buyers, suppliers and investors

For buyers, the increasing number of partnerships and investments suggests a more stable and diverse supply of recycled critical materials. Suppliers of battery scrap and end-of-life batteries will find more avenues for their materials, potentially at better terms. Investors are seeing significant capital flowing into the sector, exemplified by Redwood Materials' $425 million Series E financing [3][4] and Glencore's $75 million investment [5][6][7][8]. This indicates strong confidence in the long-term growth and profitability of battery recycling. The market was worth $16.5 billion in 2025 and is forecast to reach $72.8 billion by 2035, a CAGR of 16.0%, presenting substantial opportunities for strategic investments and partnerships across the value chain.

About the data

Facts in this M&A analysis come from the dated public sources listed below - company announcements and filings, regulators and business and trade news - cited by number in the text. Market size figures are Market-Reports.com estimates (US dollars, base year 2025, forecast to 2035). Statements about what developments mean are our assessment, not reported fact.

Sources

1. [3] redwoodmaterials.com
2. [4] redwoodmaterials.com
3. [5] waste360.com
4. [6] smenet.org
5. [7] businesswire.com
6. [8] mercomcapital.com
7. [9] aquametals.com
8. [10] nasdaq.com
9. [11] aquametals.com
10. [12] businesswire.com
11. [13] batteriesinternational.com
12. [14] redwoodmaterials.com
13. [15] aquametals.com
14. [16] kalkinemedia.com
15. [17] recyclico.com
16. [18] fusionenergynews.com
17. [20] battery-tech.net
18. [21] recyclico.com