[SMM Analysis] How Should Enterprises Seize Opportunities Under the Battery Recycling Subsidy Policy

In recent years, with the rapid development of the NEV industry, the retirement volume of power batteries has also been increasing year by year. To regulate the battery recycling market and promote resource recycling, national and local governments have successively introduced a series of subsidy policies, injecting a "booster" into the battery recycling industry. However, under the policy dividends, opportunities and challenges coexist, making it a focal point for the industry to explore how battery recycling enterprises can seize opportunities and address challenges.

Recently, battery recycling has once again benefited from favorable subsidies. The Jingmen Municipal Bureau of Economy and Information Technology issued the "Notice on the Application for Subsidies for the Comprehensive Utilisation of Retired NEV Power Batteries in 2025," which plays a significant role in promoting the sustainable development of the local lithium battery recycling industry and resource recycling.

Substantive support measures have further revitalized the local industry chain. In 2023, the output value of the new energy and new materials industry, primarily focused on lithium batteries, in Jingmen High-tech Zone reached 60.04 billion yuan, marking a 121% increase compared to 2021. The Jingmen new energy power ESS battery industry cluster has now been recognized as a national-level SME characteristic industry cluster, one of the first provincial-level strategic emerging industry clusters, and a provincial-level innovative industry cluster.

Jingmen's subsidy policy is not an isolated case. In recent years, with the booming development of the NEV industry, the surge in retired power batteries has made battery recycling an increasingly prominent issue. National and local governments have introduced relevant policies to encourage and support the development of the battery recycling industry. Jingmen's policy has emerged in this context, and its significance lies not only in the tangible financial subsidies but also in the strong policy signal it sends: the battery recycling industry will become one of the key areas for future development.

Policy dividends have brought unprecedented development opportunities to the battery recycling industry, but they also place higher demands on enterprises. Companies must recognize the situation, actively respond to challenges, and continuously enhance their core competitiveness to stand out in the fierce market competition, share in the policy dividends, and achieve sustainable development.