On December 23, the Ministry of Industry and Information Technology (MIIT) announced the "Specifications for the Comprehensive Utilisation of NEV Retired Power Batteries (2024 Edition)" (hereinafter referred to as the new specifications). The "Specifications for the Comprehensive Utilisation of NEV Retired Power Batteries (2019 Edition)" and the "Interim Measures for the Administration of Announcements on the Specifications for the Comprehensive Utilisation of NEV Retired Power Batteries (2019 Edition)" were simultaneously repealed.
2024 Battery Recycling Regulations Officially Released
According to the review, the new specifications are based on the 2019 edition, adjusted and improved to address current industry changes and new trends, and propose updated and higher requirements.
In terms of "comprehensive utilisation capacity," the new specifications add requirements for enterprises' R&D investment, stipulating that "annual expenses for R&D and process improvement should not be less than 3% of the revenue from the comprehensive utilisation of retired power batteries. Enterprises are encouraged to apply for provincial-level or higher independent R&D institutions, engineering laboratories, technology centers, or high-tech enterprise qualifications."
For cascade utilisation enterprises, the new specifications clearly prioritize enterprises with multiple relevant invention patents or utility model patents to apply for the specifications announcement. The annual cascade utilisation volume of retired power batteries should not be less than 60% of the actual recycling volume of retired power batteries (both utilisation and recycling volumes are calculated by weight). Retired power batteries that cannot be used for cascade utilisation should be handed over to recycling enterprises that meet these specifications for processing.
For recycling enterprises, the new specifications require active R&D and application of recycling technologies, equipment, and processes for anode and cathode materials, separators, electrolytes, etc., striving to improve the recycling level of retired power batteries. Through smelting or material restoration, the effective extraction and recovery of key valuable metals should be ensured. Specifically, the recovery rate of electrode powder after crushing and separation should not be less than 98%, with impurity aluminum content below 1.5% and impurity copper content below 1.5%. The lithium recovery rate during the smelting process should not be less than 90%, while the recovery rates for nickel, cobalt, and manganese should not be less than 98%. The comprehensive energy consumption for lithium carbonate production per unit product should be below 2,200 kilograms of standard coal per mt. For material restoration processes, the total weight of recovered materials should account for no less than 99% of the total weight of target materials in the original power battery. The recycling rate of process wastewater should reach 90% or higher.
Policies Continue to Regulate the Battery Recycling Industry
With the rapid development of China's NEV industry, the assembly volume of power batteries has been increasing annually, gradually entering a large-scale retirement phase. Proper recycling and utilisation of power batteries are not only essential for improving resource utilisation efficiency but also crucial for ensuring the sustainable and healthy development of the NEV industry.
In recent years, policies have continuously implemented normative management for the comprehensive utilisation of power batteries, focusing on policy guidance, technological innovation, standard-setting, and regulatory management. Efforts have been made to cultivate key enterprises for cascade and recycling utilisation of power batteries, dynamically adjusting the list of enterprises meeting the specifications with a "dynamic entry and exit" mechanism, and supporting top-tier enterprises to grow stronger.
Additionally, on December 18, the MIIT's Department of Energy Conservation and Comprehensive Utilisation released the "Administrative Measures for the Recycling and Comprehensive Utilisation of Lithium-Ion Batteries for Electric Bicycles (Draft for Comments)" (hereinafter referred to as the "Draft for Comments").
In terms of overall requirements, the "Draft for Comments" specifies that electric bicycle producers should strengthen green design during the product R&D phase in collaboration with lithium battery producers, enhancing product disassembly, recyclability, and maintainability. Electric bicycle producers should take primary responsibility for recycling retired lithium batteries, leveraging existing recycling channels to build a recycling network and provide recycling services.
The "Draft for Comments" also specifies that electric bicycle producers, lithium battery producers, instant delivery companies, shared electric bicycle operators, battery leasing operators, electric bicycle repair outlets, recycling service outlets, comprehensive utilisation enterprises, and other entities or individuals generating retired lithium batteries should fulfill their respective responsibilities to ensure the proper transfer and scientific utilisation of retired lithium batteries. Electric bicycle producers should establish dedicated institutions in provinces (autonomous regions, municipalities) where products are sold. Instant delivery companies, shared electric bicycle operators, and battery leasing operators should establish dedicated institutions or assign dedicated personnel in provinces (autonomous regions, municipalities) where products are used or operated to handle local lithium battery recycling.
China Has 162,000 Battery Recycling-Related Enterprises
On December 20, Qichacha data showed that in terms of registrations, over the past decade, the number of battery recycling-related enterprise registrations in China has increased annually. Particularly in 2021, annual registrations surged by 300.0% YoY to 27,400, marking the highest growth rate in the past decade. In 2023, registrations reached 46,200, setting a new record for the past decade. As of December 19, 2024, 40,200 related enterprises have been registered in China.
In terms of existing enterprises, China currently has 162,000 battery recycling-related enterprises. Industry distribution is primarily concentrated in wholesale and retail, with 76,000 enterprises accounting for 46.7%, followed by scientific research and technical services, with 34,000 enterprises accounting for 21.1%.
In terms of registered capital, among the existing battery recycling-related enterprises with disclosed registered capital, those with registered capital below 1 million yuan account for the largest proportion at 30.9%, followed by those with registered capital between 1 million and 2 million yuan, accounting for 21.6%. Overall, China's battery recycling industry is dominated by small enterprises, with 52.5% of enterprises having registered capital below 2 million yuan.
According to the "White Paper on the Development of China's Lithium-Ion Battery Recycling, Dismantling, and Cascade Utilisation Industry (2024)" jointly released by EVTank, the Yiwei Economic Research Institute, and the China Battery Industry Research Institute, as formal enterprise "alliances" are gradually established, retired batteries are increasingly returning to formal channels. In 2023, the actual recycling volume reached 623,000 mt. In the future, as the lithium battery recycling channels improve, retired lithium batteries will be handled more appropriately.
According to a previously released MIIT list, as of January 17 this year, the fifth batch of white-listed power battery recycling enterprises had been announced, expanding the list to 156 enterprises.
The white paper data shows that as of December 2023, the nominal capacity for cascade utilisation and recycling dismantling of lithium-ion batteries by China's 156 white-listed enterprises reached 3.793 million mt/year, including 1.57 million mt/year for cascade utilisation and 2.223 million mt/year for recycling dismantling. Based on the enterprises' planning targets, China's lithium-ion battery recycling capacity is expected to reach 10.242 million mt/year by 2028. EVTank pointed out that, based on the actual recycling volume data for 2023, the nominal capacity utilisation rate of the entire industry was only 16.4%.
Attachment: Specifications for the Comprehensive Utilisation of NEV Retired Power Batteries (2024 Edition).pdf
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