[SMM Science Popularization] Overview of the Lithium Battery Recycling Industry Chain

SMM March 1 News:

Against the backdrop of a global acceleration in green energy transition, the battery recycling industry is rapidly emerging as a key segment in the new energy field. This industry chain closely integrates upstream battery collection and transportation, midstream cascade utilization and recycling, and downstream material sales and remanufacturing, collectively shaping the development blueprint of this emerging sector.

Upstream: Battery Collection and Transportation

Step-1 of battery recycling involves the efficient collection and safe transportation of end-of-life batteries. With the widespread adoption of NEVs and electronic products, the increasing number of end-of-life batteries provides ample raw materials for recycling. Currently, the collection of end-of-life batteries relies on the recycling networks of automakers and battery producers, as well as the efforts of third-party platforms. For instance, automakers like Tesla and BYD have set up recycling stations in multiple locations to facilitate the disposal of end-of-life batteries by users. Meanwhile, third-party companies such as GEM have expanded the scale of collection networks through collaborations with automakers and electronics manufacturers.

The transportation process must strictly adhere to safety standards, utilizing specialized packaging and vehicles to ensure the integrity and safety of batteries during transit.

Midstream: Cascade Utilization and Recycling

In the midstream segment, cascade utilization extends the life cycle of batteries by repurposing those no longer suitable for vehicles into applications such as low-speed EVs and ESS power stations, thereby enhancing economic efficiency. Recycling involves the dismantling and recovery of batteries, where valuable metals like lithium, cobalt, and nickel are extracted and reused through advanced technologies. This process reduces dependence on new minerals and provides a stable supply of materials for battery production.

Downstream: Material Sales and Remanufacturing

Battery materials processed in the midstream re-enter the market, supplying cost-effective and performance-stable recycled materials for battery production, thus promoting a closed-loop life cycle for new energy products.

However, the battery recycling industry chain faces challenges, including incomplete collection networks upstream, high costs of technology and equipment midstream, and limited market acceptance of recycled materials downstream.

Overall, the battery recycling industry, with its resource and environmental protection advantages, is attracting more capital and talent. Driven by policy support and market demand, this industry is expected to overcome challenges and achieve coordinated development across all segments.

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