[SMM Analysis] Standardization of Lithium Battery Recycling is Imperative!

Published: Oct 21, 2024 12:05 (GMT+8)

Source: SMM

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After ten years of rapid development, as of July 2024, the number of NEVs in China reached 25.658 million units.

After ten years of rapid development, as of July 2024, the number of NEVs in China reached 25.658 million units. The service life of power batteries is generally 5 to 8 years. In 2023, the total amount of retired power batteries in China exceeded 580,000 mt, and it is expected that by 2030, China's power battery recycling volume will reach 6.028 million mt. The wave of retirement for automotive power lithium batteries is approaching, and the development of a mature battery retirement and recycling industry chain is urgently needed.

As the market for recycling retired power lithium batteries accelerates in prosperity, a large number of small workshops lacking production qualifications and technical accumulation have emerged, bringing safety and environmental protection risks. The market occupation by these small workshops highlights the challenges faced by power battery recycling, such as non-standardized channels and difficulties in implementing responsibility systems. The main challenges currently faced include: a large number of retired batteries but poor recycling standardization; significant profits from power batteries but difficulties in implementing the main responsibility system for recycling.

Therefore, it is necessary to standardize the recycling process and strengthen process supervision; improve standardized recycling rates and optimize recycling channels; enhance digital management and recycling traceability. In the next 5 to 10 years, the retirement of power batteries will reach new peaks, and the development of related recycling industries will be closely watched.

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