Key Points
- The waste battery recycling industry in China is growing rapidly along with the country’s NEV industry.
- In January-May 2022, China recycled 115,000 tons of used power batteries, more than the total amount for the whole of last year.
- The country has also built more than 10,000 recycling service outlets for used power batteries.
- As the NEV industry continues to grow, the power battery recycling market is expected to become increasingly important.
- The global battery recycling market is forecast to exceed RMB 100 billion ($14 billion) by 2025 and reach RMB 150 billion by 2027.
- In China, the volume of retired batteries in 2030 is expected to reach 437 GWh, with a recycling market valued at RMB 169.5 billion.
- The development of the battery recycling industry is essential to the sustainable growth of the NEV industry.
- By recycling used power batteries, valuable materials such as lithium, cobalt, and nickel can be recovered and reused, which helps to reduce the environmental impact of NEVs.
- The battery recycling industry is still in its early stages of development, but it has the potential to become a major growth driver in the coming years.
- With the increasing demand for NEVs, the demand for battery recycling services is also expected to grow. This presents a significant opportunity for startups and established companies alike.
Details
The waste battery recycling industry in China is experiencing rapid growth, driven in part by the expansion of the new energy vehicle (NEV) industry. In the first five months of the year, China recycled 115,000 tons of used power batteries, surpassing the total amount recycled in the previous year. China’s Ministry of Industry and Information Technology (MIIT) spokesperson, Tao Qing, highlighted this growth at a news conference.
To support the increasing demand for battery recycling, China has been enhancing its resource recycling capacity and has established over 10,000 recycling service outlets for used power batteries.
Looking ahead, China plans to study and develop management methods for recycling power batteries for NEVs and continue to improve the recycling system.
Explosive growth
China’s NEV industry has been experiencing explosive growth over the past few years. In 2022, it sold 6,887,000 units, which was a significant increase of 95.60 percent from the previous year, according to the China Association of Automobile Manufacturers (CAAM). In the first half of the following year, NEV sales reached 3,745,000 units, up 44.54 percent year-on-year.
The future growth of NEVs in China is expected to be significant, with forecasts indicating that NEV sales could reach 9 million units in a given year. The penetration rate of NEVs is currently low in third-tier and lower-tier cities, but it is expected to increase as charging infrastructure expands, particularly in rural areas.
Rapid development
Given the rapid development of the NEV industry, the power battery recycling market is receiving more attention. Global forecasts suggest that the battery recycling market will exceed RMB 100 billion ($14 billion) by 2025 and could reach RMB 150 billion by 2027. In China alone, the volume of retired batteries is predicted to reach 437 GWh by 2030, with a recycling market valued at RMB 169.5 billion.
The growing potential of the sector has already attracted investment and interest from startups. For instance, Nio Capital led a significant Series A funding round for battery recycling company Ruilong Technology, indicating investor confidence in the industry’s future.
Conclusion
The waste battery recycling industry in China is growing rapidly and is expected to become increasingly important in the coming years. The development of the battery recycling industry is essential to the sustainable growth of the NEV industry, and by recycling used power batteries, valuable materials can be recovered and reused, which helps to reduce the environmental impact of NEVs.
The battery recycling industry is still in its early stages of development, but it has the potential to become a major growth driver in the coming years. With the increasing demand for NEVs, the demand for battery recycling services is also expected to grow. This presents a significant opportunity for startups and established companies alike.
Here are some additional points
- The government is playing a key role in the development of the battery recycling industry in China.
- The industry is facing some challenges, such as the lack of standardized recycling processes and the high cost of recycling.
- However, the industry is also seeing some positive developments, such as increasing investment from startups and established companies.
- The future of the battery recycling industry in China looks bright, and it is expected to play a major role in the sustainable growth of the NEV industry.
