In August this year, the lithium battery recycling industry entered a period of intensive production startup, with multiple projects across China completing commissioning, signing contracts, or undergoing EIA public disclosure within the month. The following is the production startup and project progress of various enterprises:
Sunwoda: The first phase of the Tengzhou End-of-Life Lithium Battery Comprehensive Utilization Base was fully commissioned. Located in Tengzhou, Zaozhuang, Shandong, the project has a total investment of 1.2 billion yuan, an annual processing capacity of 50,000 metric tons, and a comprehensive recovery rate of 98.5%. The recycled black mass, after metal extraction, can be directly synthesized into cathode material and re-enter Sunwoda's supply chain system. The base adopts full-process intelligent control using industrial robots, reducing labor in operation and handling by 80%.
Jereh: The Chongqing Lithium Resource Recycling Station of Jereh Renewable Cycle was officially commissioned, located in the Changshou Economic Development Zone, Chongqing. A commissioning ceremony was held on July 31. The self-developed 2.0 equipment, compared to conventional industry equipment, has a 30% increase in processing capacity, a 35% reduction in comprehensive energy consumption, and a 20% decrease in carbon emissions. During the commissioning ceremony, cooperation agreements were signed with nine enterprises, including Saudi EADA, UAE Witthal Gulf, Xiamen Hithium New Materials, and Jiujiang Tinci Resources Recycling.
Zhejiang Lisheng Energy: The environmental impact assessment (EIA) for the lithium battery full life cycle comprehensive utilization base project was publicly disclosed. The site is selected in Xiaopu Town, Changxing County, Huzhou, with a total investment of 82.0567 million yuan. It has an annual processing capacity of 100,000 metric tons of scrap lithium batteries and electrodes, and includes a 3 GWh high-energy pack battery assembly line, forming a multi-path integrated model of second-life application, shredding and recovery, and electrode screening.
Zihuan Battery × BYD: On August 19, China Resources Recycling Group Battery Co., Ltd. (Zihuan Battery) and Shenzhen BYD Lithium Battery Co., Ltd. signed a framework cooperation agreement in Tianjin. Zihuan Battery is currently the only second-level subsidiary of a central state-owned enterprise in China that focuses on battery recycling as its main business. The two parties will carry out strategic cooperation around core businesses such as battery full life cycle management, comprehensive battery utilization, end-of-life battery recycling, and circular utilization. They also plan to jointly establish a battery industry fund.
Liaoning Zhongming New Energy: The environmental impact assessment (EIA) for the waste power battery comprehensive utilization project was publicly disclosed. The project will be located in the Shenbei New District, Shenyang, with a total investment of 250 million yuan. It has an annual processing capacity of 120,000 metric tons of scrap power batteries and lithium, nickel, and cobalt scrap, producing battery-grade lithium carbonate, cobalt sulfate, and nickel sulfate. Tianheng Energy: A lithium battery recycling project with an annual capacity of 50,000 metric tons was approved, to be located at the Dafenggang Petrochemical New Material Industrial Park in Yancheng, Jiangsu, with a total investment of 450 million yuan. It will produce 24,201 metric tons of recycled black mass annually, along with lithium hydroxide and lithium carbonate and other products.
Anhui Lecheng Lithium Battery: The environmental impact assessment of its power battery circular recycling project was publicized, to be located in the Wuhu Fanchang Economic Development Zone, with a total investment of 110 million yuan. It will add 40,000 metric tons per year of scrap LFP battery cell disassembly and recycling capacity, and be equipped with echelon assembly and crushing and sorting production lines.
Sichuan Hongshan New Energy: The environmental impact assessment of its LFP cathode material physical repair and recycling project was publicized, to be located in the Yibin Sanjiang New District, with a total investment of 100 million yuan. It will recycle 12,500 metric tons of scrap LFP positive electrode annually.
Tongliao Shuofang Xunneng: The first environmental impact assessment notice of its waste battery recycling and reuse project was published, to be located in the Mulitu Industrial Park, Horqin District, Tongliao, Inner Mongolia, with a total investment of 100 million yuan. The project will be constructed in two phases, each with two production lines, handling 30,000 metric tons of recycling and treatment annually.
According to SMM data, the spot price of battery-grade lithium carbonate exhibited an upward-then-pullback trend in August, reaching an intra-month high of over 160,000 yuan/mt before pulling back to around 150,000 yuan/mt at the end of the month. The strengthening lithium prices also pushed up the valuation of recyclable lithium elements in scrap batteries, bringing certain pressure on recycling enterprises' front-end feed costs.
