In July 2026, China's lithium battery recycling sector entered a concentrated commissioning window. New production lines from multiple top-tier and regionally distinctive players went into operation simultaneously, with hydrometallurgical, dry-process, cross-border dismantling, and second-life application routes deployed in parallel. New compliant processing capacity expanded significantly, marking the industry's formal entry into large-scale implementation. Key commissioning enterprises and project details are as follows:
1. Narada Power
Its subsidiary, Anhui Narada Taiboyuan, saw its 150,000 mt comprehensive scrap lithium battery recycling project in Jieshou, Anhui, commissioned before July. Focusing primarily on LFP recovery, it employs a hydrometallurgical process. Upon reaching full production, it will produce 25,000 mt of battery-grade lithium carbonate annually, completing the "battery manufacturing — energy storage — recycling — regenerated materials" closed-loop across the entire industry chain. It is the largest lithium battery recycling base in northern Anhui.
2. Envision Green Energy
Its power battery processing plant at the Hong Kong EcoPark was officially commissioned in July, becoming Hong Kong's first compliant lithium battery recycling facility. Capable of processing 10,000 mt of end-of-life batteries annually, it features a fully automated AI dismantling line, producing battery black mass directly supplied to mainland smelters, thereby opening a cross-border battery recycling channel for the Greater Bay Area.
3. Gansu Chenyue Yuchen New Energy
All four of its fully dry-process anode recycling production lines in Wuwei, Gansu, were commissioned in late July, specializing in a zero-wastewater graphite regeneration process. At full production, it will produce 24,000 mt of regenerated high-purity graphite annually, receiving end-of-life batteries from the northwestern energy storage and new energy vehicle sectors, thus filling a gap in specialized dry-process recycling in Northwest China.
4. Zhejiang Lisheng Energy
Its 100,000 mt lithium battery full-life-cycle base in Changxing, Huzhou, commenced trial production in July, simultaneously supported by a 3 GWh second-life energy storage Pack production line. It handles both battery dismantling and regeneration, and the second-life repurposing of intact battery cells, relying on the Yangtze River Delta industrial cluster for the local consumption of waste batteries and production off-cuts.
In the same month of July, several supporting projects also achieved key progress: Hainan Dinisi’s 30,000 mt sorting project received environmental protection approval; Tianheng Energy’s 50,000 mt recycling project in Yancheng, Jiangsu, entered its final environmental assessment review; Yonghan Materials signed an agreement for a large 300,000 mt recycling base in Sichuan, building momentum for continued capacity release in H2.
The core driver of this concentrated commissioning wave is the arrival of a bulk end-of-life cycle for vehicle-mounted power batteries, compounded by the implementation of new recycling regulations and tax incentives for regenerated materials, which is accelerating the industry's elimination of unlicensed small workshops. The current industry shows a clear divergence: large integrated enterprises are deploying large-scale lithium extraction via hydrometallurgy, regionally distinctive players are focusing on low-cost dry-process anode recycling, and cross-border projects are completing the circular economy infrastructure for the Greater Bay Area. Presently, the industry still faces challenges such as fragmented recycling sources, weak profitability from LFP recycling, and continuously rising environmental protection entry barriers. In the medium and long term, top-tier players with large-scale capacity, proprietary industry chain integration, and clean, low-energy consumption processes will continue to expand their competitive advantages.
