[SMM Analysis] Guangzhou Releases Incentive Measures for Recycling Projects, Analysis of Basic Application Conditions and Incentives

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On May 8, the local government of Guangzhou issued the "2025 Guangzhou Municipal Guidelines for the Application of Second-Life Application and Recycling Projects for Spent Power Batteries from New Energy Vehicles" and commenced the project application process. The relevant requirements are as follows: The project will start accepting applications on May 26 and the deadline is May 30.

The project has the following application criteria:

(1) The applicant must be an enterprise operating in Guangzhou, and the project implementation site must be within Guangzhou.

(2) The enterprise must meet the requirements of the "Interim Measures for the Administration of the Recycling and Utilization of Power Batteries from New Energy Vehicles" (MIIT Joint Circular [2018] No. 43) and the "Interim Provisions on the Traceability Management of the Recycling and Utilization of Power Batteries from New Energy Vehicles", and possess the capability for information-based traceability.

(3) The project's fixed asset investment (excluding tax) must be no less than 5 million yuan (inclusive).

(4) The project must be completed, with the construction period spanning from January 1, 2022, to May 20, 2025. Basic conditions for project completion: The project has completed the established investment plan and major construction content, with the maximum error range for the completion of the fixed asset investment plan not exceeding 20%. For projects where the fixed asset investment amount changes by more than 20% or where there are significant changes in the project construction content, the project shall meet the requirement that the error range for the completion of fixed asset investment does not exceed 20% after fulfilling the relevant change procedures. The fixed asset investment amount completed by the project refers to the actual fixed asset investment amount incurred by the project from the date after the project's original filing is approved

to the completion date. When calculating the fixed asset investment amount completed by the project, the principle of using the smaller amount between the invoice amount and the payment amount shall be followed.

(5) The applicant must not be included in the "Credit China" list of severely dishonest entities.

After completing the application,

(1) Funds will be awarded in an ex-post manner through competitive evaluation.

(2) For eligible projects, they will be designated as pilot demonstration projects. Each pilot demonstration project will receive a reward of no more than 30% of the project's fixed asset investment (excluding tax), with a maximum reward not exceeding 100 million yuan.

It is understood that Guangzhou ranks among the top global cities in terms of the scale of new energy vehicle investment, the number of vehicles promoted, and the level of intelligent application. The completion and operation of the project will effectively promote the enthusiasm for the recycling and utilization of spent power batteries from retired new energy vehicles.

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