EV Battery Recycling Market Growth

As China’s electric vehicle (EV) industry grows, so does the ev battery recycling market. According to the China Society of Automotive Engineers, over 580,000 tons of EV batteries were retired in China in 2023. By 2030, the ev battery recycling market is expected to exceed 100 billion yuan.

EV batteries account for about 50% of carbon emissions during the production phase of electric vehicles. Building a robust ev battery recycling system is crucial. It will enhance resource efficiency and reduce the overall carbon footprint throughout the batteries’ lifecycle.

The Importance of Battery Recycling

By the end of 2023, China had 20.41 million electric vehicles. As more EVs hit the road, battery recycle efforts are growing each year. When an EV battery’s capacity falls below 70-80%, it needs to be replaced. Last year, the number of retired batteries increased by over 140%, marking a new growth phase for the battery recycle industry.

After recycling, batteries are reused based on their remaining capacity. If a battery has 60-80% capacity left, it can be used in electric forklifts, two-wheel electric vehicles, and large energy storage stations. Batteries with 20-60% capacity are suitable for small energy storage stations, telecom base stations, and solar energy storage systems. Batteries with less than 20% capacity are dismantled to extract valuable metals for reuse.

This process helps recover precious resources like lithium, nickel, cobalt, and manganese. Enhanced battery recycle efforts can meet 20% of China’s lithium needs, 11% of nickel, and 25% of cobalt for new EVs each year, reducing dependence on imported raw materials.

The rise of car lithium battery recycling - manly

EV Battery Recycling Market to Exceed 100 Billion Yuan by 2030

As China’s electric vehicle (EV) industry grows, so does the ev battery recycling market. According to the China Society of Automotive Engineers, over 580,000 tons of EV batteries were retired in China in 2023. By 2030, the ev battery recycling market is expected to exceed 100 billion yuan.

EV batteries account for about 50% of carbon emissions during the production phase of electric vehicles. Building a robust ev battery recycling system is crucial. It will enhance resource efficiency and reduce the overall carbon footprint throughout the batteries’ lifecycle.

Battery Recycle: Solving Resource Issues

By the end of 2023, China had 20.41 million electric vehicles. As more EVs hit the road, battery recycle efforts are growing each year. When an EV battery’s capacity falls below 70-80%, it needs to be replaced. Last year, the number of retired batteries increased by over 140%, marking a new growth phase for the battery recycle industry.

After recycling, batteries are reused based on their remaining capacity. If a battery has 60-80% capacity left, it can be used in electric forklifts, two-wheel electric vehicles, and large energy storage stations. Batteries with 20-60% capacity are suitable for small energy storage stations, telecom base stations, and solar energy storage systems. Batteries with less than 20% capacity are dismantled to extract valuable metals for reuse.

This process helps recover precious resources like lithium, nickel, cobalt, and manganese. Enhanced battery recycle efforts can meet 20% of China’s lithium needs, 11% of nickel, and 25% of cobalt for new EVs each year, reducing dependence on imported raw materials.

Lithium Battery Recycling: Growing Technology and Business Models

Electric vehicle (EV) batteries contain harmful chemicals. If not properly recycled, they can cause pollution. Recently, China has established an extended producer responsibility system for products like EV batteries. This means battery and car manufacturers must set up or hire companies to recycle old batteries based on their sales.

With various policies and market mechanisms in place, a recycling model has emerged. Major battery manufacturers, EV companies, lithium material companies, and certified recycling firms are the main players. According to the China Battery Industry Association, by the end of October 2023, 162 car manufacturers and 77 battery reuse companies had set up 10,507 recycling service points across the country.

Recycling technology has also improved, boosting efficiency and supporting the industry’s growth. As the world’s top producer and seller of EVs, China leads in battery recycling. Some recycling technologies are world-class. Both physical and chemical methods are used, with physical methods gaining popularity for their environmental and cost benefits. This method allows for fully automated, enclosed processes without secondary pollution or waste, making it ideal for lithium battery recycle.

Higher recycling rates can lower battery costs. Advanced technology and professional recycling not only benefit recycling companies but also provide economic advantages to the battery industry.

EV Battery Recycling Policies Support Industry Growth

Policies are key to the growth of the ev battery recycling industry. As this industry rapidly expands, China’s policy framework is becoming more robust. From 2018 to 2023, the Ministry of Industry and Information Technology (MIIT) released five white lists of companies meeting the standards for recycling EV batteries. A total of 156 companies were included.

At the end of last year, MIIT released the “Management Measures for the Comprehensive Utilization of New Energy Vehicle Power Batteries (Draft for Comments).” This document outlines the policies and supervision principles for recycling used EV batteries. It specifies the responsibilities of car manufacturers, battery producers, and companies that repurpose batteries. It covers all stages from research and design to production, operation, and disposal.

Globally, the development of ev battery recycling is a hot topic. For example, EV battery manufacturers entering the EU must provide details on harmful substances, carbon footprint labels, and a “digital passport” for batteries. They must also meet clear recycling requirements.

Some organizations predict that by 2030, China’s EV battery recycling volume will reach 6.028 million tons, with the market size exceeding 100 billion yuan. Building a comprehensive ev battery recycling ecosystem involving government, industry, academia, and users is crucial for both domestic and international competitiveness.

Conclusion

The future of ev battery recycling looks promising as China continues to develop its policies and technologies. By focusing on battery recycle, the country can manage its resources better and reduce environmental impacts. With a market expected to exceed 100 billion yuan by 2030, the industry is set to play a crucial role in the global effort to create a sustainable future for electric vehicles.

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