How is the operation of the battery scrap dismantling projects at primary lead smelters in 2024? [SMM Analysis]

To reduce production costs, achieve higher overall returns, and alleviate supply pressure on the raw material side, several primary lead smelters have invested in battery scrap dismantling production lines, which have been put into operation and are running stably, completing their penetration into the recycling industry. The low-temperature lead products produced by these battery scrap dismantling projects, along with crude lead from mines, enter the electrolytic system to achieve the expansion of primary lead capacity and ensure operational efficiency.

Entering 2024, according to the survey, the enthusiasm for new construction and expansion of battery scrap dismantling projects at primary lead smelters has significantly declined. Although primary lead smelters in various regions have completed the application for hazardous waste comprehensive treatment permits, the actual progress of project construction has been temporarily delayed due to factors such as overcapacity in battery scrap processing and the difficulty in procuring battery scrap due to price increases. Currently, the completed projects of primary lead smelters are still concentrated in Henan, with a small amount of battery scrap dismantling capacity in Yunnan and Inner Mongolia, and no expansion plans.

Additionally, compared to the expectations in 2023 ([SMM Analysis] How is the construction of battery scrap dismantling production lines at primary lead smelters in 2023?), some smelters did not start operations as scheduled due to their own and market reasons. According to the SMM survey, the operation of battery scrap dismantling lines at primary lead smelters in 2024 is as follows:

Against the backdrop of continuous expansion of secondary refined lead capacity, competition in 2024 is even more intense. The difficulty in procuring battery scrap is comparable to that of lead ore resources, and battery scrap prices have reached new highs, making it difficult for smelters to achieve ideal returns. The construction of battery scrap dismantling capacity at primary lead smelters is gradually coming to an end, with three-quarters of primary lead smelters still not having battery scrap dismantling projects. Their smelting profits mainly come from the processing and trade of silver, the recovery of precious and minor metals, and the improvement of mineral resource utilization efficiency. Primary lead smelters are open to more diverse raw material supplements and are more focused on the recovery progress of lead-zinc-silver mineral resources compared to the battery scrap recycling market.