SMM Analysis analysis of the process of scrap lithium battery repurposing

SHANGHAI, Jun 29 (SMM) - The "Interim Measures for the Recycling and Utilization of Power Batteries of New Energy Vehicles" mentioned that under the premise of ensuring safety and controllability, the scrap power batteries should be rationally utilized at multiple levels and for multiple purposes in accordance with the principle of repurposing first and then recycling and utilisation. Repurposing refers to the process of necessary detection, classification, disassembly, battery repair or reorganization of waste power batteries into repurposed battery products so that they can be applied to downstream terminal fields.

After the capacity of the ternary lithium battery decays to 80%, its relative capacity shows a rapid decline along with the increase of the number of cycles, thus the value of repurposing is relatively low. However, as they contains rich nickel, cobalt and manganese, which are valuable metals, they are more often dismantled and recycled.

The capacity of lithium iron phosphate battery shows a relatively slow decay trend along with the increase in the number of cycles, making it more suitable for repurposing. Some lithium iron phosphate batteries meet the repurposing requirements, and will first enter the repurposing scenario after being retired. Battery repurposing is dominated by retired ternary batteries. As time goes by, retired LFP batteries will account for a bigger share of battery repurposing as more LFP batteries are retired.

Based on the in-depth market research conducted by SMM, it is evident that both ternary and lithium iron phosphate (LFP) batteries demonstrate a certain level of circulation in the domestic repurposing market. Furthermore, there is a notable variation in their respective real-world terminal applications, with a stronger preference for small-scale power and energy storage solutions in the downstream direction.

Currently, the prevalent choice for lithium battery repurposing primarily relies on repurposing technology centered around PACK (modules composed of multi-stage series-parallel battery connections) and BMS (Battery Management System). The PACK procedure consists of three main stages: processing, assembly, and packaging. At its core, this process involves connecting multiple individual cells using mechanical structures in series and parallel configurations to form a battery pack. Throughout the specific operation, considerations such as the mechanical strength of the entire battery pack and system compatibility need to be addressed. This requires the collaborative integration of numerous mature technologies, including thermal management, current control and detection, module assembly design, and computer-aided virtual development.

The primary function of the BMS (Battery Management System) is to intelligently manage and maintain each battery unit, preventing overcharging and over-discharging while continuously monitoring battery status in real-time, ultimately protecting the battery's service life. For power battery repurposing, the BMS determines the repurposed batteries' application range, lifespan, and overall value. From a technical standpoint, due to variances in power battery consistency and battery life, the BMS system's data may diverge from the actual battery conditions, resulting in challenges related to safety and product quality during the repurposing process. Given the differences in battery models, a larger quantity of batteries is required for grouping, leading to comparatively higher costs for screening, grouping, and processing. Some technologically advanced companies can ensure stable economic benefits by securing a more consistent supply of batteries.

Based on a survey conducted by SMM, the current lithium battery repurposing market tends to have a supply distribution concentrated among traders, leading to a comparatively lower volume reaching the end market. Some businesses in specific markets encounter procurement challenges or deal with regional cost premiums.