[SMM Analysis] A Brief Overview of the New Requirements for Lithium Battery Recycling Whitelist Enterprises

SMM December 27 News: The Ministry of Industry and Information Technology revised the "Normative Conditions for the Comprehensive Utilisation of Waste Power Batteries for New Energy Vehicles (2019 Edition)" (hereinafter referred to as the "Normative Conditions") to form the "Normative Conditions (2024 Edition)," which was released on December 16, 2024 (Announcement No. 42 of 2024 by the Ministry of Industry and Information Technology of the People's Republic of China). The purpose of this revision is to strengthen the management of the comprehensive utilisation industry for waste power batteries of new energy vehicles and improve the level of comprehensive utilisation of waste power batteries. The Normative Conditions elaborate on various requirements for comprehensive utilisation enterprises, including enterprise layout and project site selection, comprehensive utilisation capacity, product quality, environmental protection, production safety and occupational health, social responsibility and vocational education, as well as specific provisions on supervision and management. The main highlights are as follows:

1. Enterprise Layout and Project Site Selection: Enterprises must comply with national industrial policies and local planning requirements. Construction is prohibited in specific protected areas. New enterprises should be located in development zones or industrial parks, and the land used should be designated for industrial purposes.

2. Comprehensive Utilisation Capacity: This involves requirements for enterprise registered capital, land use procedures, equipment and technology selection, traceability capabilities, safety protection, and environmental protection measures. Specific requirements are also set for cascade utilisation enterprises and recycling enterprises, such as verifying the sources of waste power batteries and possessing specific technical means and capabilities.

3. Product Quality: Enterprises are required to establish a quality management department, build a comprehensive quality management system, and obtain quality management system certification. Products must comply with the laws, regulations, policies, and standards of the relevant fields.

4. Environmental Protection: Enterprises must construct supporting environmental protection facilities in accordance with environmental protection requirements and obtain pollutant discharge permits or pollutant discharge registration forms. Additionally, they should fulfill environmental protection obligations, implement ecological environmental protection measures, and establish and improve enterprise environmental management systems.

5. Production Safety and Occupational Health: Enterprises must strictly comply with laws and regulations such as the Work Safety Law and the Law on Prevention and Control of Occupational Diseases, ensuring that production safety conditions and occupational disease hazard prevention conditions meet the standards.

6. Social Responsibility and Vocational Education: Enterprises are encouraged to strengthen supplier management to ensure the legality of raw material sources and establish vocational education and training management systems to improve employee skills and quality.

7. Supervision and Management: The Normative Conditions standardize the application, review, and announcement processes, implement dynamic management of announced enterprises, including the submission of annual reports, acceptance of supervision and inspection, and change applications. It also lists circumstances under which announcements may be revoked.

In summary, the new Normative Conditions provide comprehensive guidance and regulations for the comprehensive utilisation industry of waste power batteries for new energy vehicles, contributing to the healthy development of the industry and setting new requirements for new lithium battery recycling whitelist enterprises.

SMM New Energy Research Team

Cong Wang 021-51666838

Rui Ma 021-51595780

Disheng Feng 021-51666714

Ying Xu 021-51666707

Yanlin Lü 021-20707875

Yujun Liu 021-20707895

Xiaodan Yu 021-20707870

Zhicheng Zhou 021-51666711

He Zhang 021-20707850