[SMM Analysis] Malaysia Advances Power Battery Recycling System Construction, Battery Passport Standards and Recycling Projects Accelerate Implementation

With the continuous development of the NEV market, Malaysia is accelerating the construction of power battery recycling and disassembly recycling systems to meet the processing demand arising from the growing number of retired power batteries in the future.

According to data from Malaysia's Road Transport Department (JPJ), in April 2026 Malaysia registered a total of 5,894 EVs, up 103.8% YoY. During the same period, EVs accounted for approximately 7.6% of total new car registrations that month.

As NEV ownership grows, the issue of power battery recycling is gradually gaining attention. The Malaysia Automotive, Robotics and IoT Institute (MARii) expects that by 2050, Malaysia will have 870,000 EV batteries requiring recycling or disposal.

On the regulatory front, Malaysia has established a framework for managing end-of-life power batteries. According to requirements from Malaysia's Department of Environment (DOE), end-of-life power batteries must be stored, transported, and processed in accordance with hazardous waste management regulations. The relevant system includes Authorized Automotive Treatment Facilities (AATFs), licensed recycling centers, and the SW103 hazardous waste management mechanism.

Meanwhile, Malaysia is promoting circular economy development in the automotive sector through the National Automotive Policy 2020 (NAP 2020). According to the policy plan, by 2030, Malaysia plans to achieve a 70% recycling and recovery rate for end-of-life vehicles and expand the construction scale of AATFs.

In terms of full life cycle management of power batteries, Malaysia released MS 2818, "Battery Passport for Electrified Vehicles – General Requirements," in 2025, becoming the first ASEAN country to introduce an EV battery passport standard. The standard aims to enhance the traceability of power batteries throughout their life cycle, recording information such as battery origin, material composition, usage history, and recycling data, thereby providing data support for subsequent disassembly recycling.

In terms of industrial investment, the construction of power battery recycling projects in Malaysia continues to advance.

Econili Battery New Energy has invested in and built a power battery recycling project in Perak. According to company disclosures, its Phase I project has an annual processing capacity of 24,000 mt of end-of-life batteries, and it employs hydrometallurgy technology to recover key battery metals such as lithium, nickel, and cobalt.

Furthermore, the company plans to advance a Phase II expansion project within the next two years, adding 100,000 mt of annual recycling capacity. Upon completion, the project is expected to further enhance Malaysia's capabilities in power battery recycling and the disassembly recycling of key metal resources.

With the ongoing development of the NEV market and the gradual improvement of the power battery management system, Malaysia is accelerating the establishment of an industry chain system that covers power battery recycling, resource disassembly recycling, and full life cycle traceability.