[SMM Analysis] Overview of the Latest Policies on Lithium Battery Recycling in 2025: Several Key Periods Worth Noting

I. Administrative Measures for the Comprehensive Utilisation of Scrap Power Batteries from New Energy Vehicles (2024 Edition)

Implementation Date: 1 January 2025.

Core Requirements:

1. Enterprise Access Thresholds: Registered capital of no less than 10 million yuan; annual production capacity for recycling enterprises of no less than 5,000 mt, and for second-life application enterprises of no less than 1,000 mt.

2. Technical Indicators: Lithium recovery rate increased from 85% to no less than 90%; nickel, cobalt, and manganese recovery rates of no less than 98%; process wastewater recycling rate exceeding 90%.

3. R&D Investment: Annual R&D expenditure shall account for no less than 3% of recycling business revenue.

II. Action Plan for Establishing a Recycling System for New Energy Vehicle Power Batteries

1. Policy Objectives: Establish full life cycle traceability system through digital technologies to enable traceability across production, sales, dismantling, and utilisation processes; combat illegal recycling channels; and promote industry standardisation.

2. Key Focus: Strengthen extended producer responsibility system, requiring automakers and battery enterprises to establish or participate in recycling networks.

III. Technical Standards and Environmental Requirements

National Standard for Recycled Black Mass in Lithium-Ion Batteries (GB/T 45203-2024)

1. Implementation Date: 1 July 2025.

         2. Core Content: Defines classification and chemical specifications for recycled black mass (e.g., total nickel-cobalt content ≥45% and lithium content ≥6% in ternary battery black mass); promotes standardisation of imported black mass; forces enterprises to upgrade sorting and purification technologies.

SMM Analysis: The core logic of 2025 lithium battery recycling policies is "regulation + incentive". By raising technical barriers, strengthening full life cycle management, and increasing financial support, the industry will shift from extensive competition to high-quality development. Subsidies and relaxed import/export conditions will also help alleviate the current prolonged inverted margin situation in the recycling sector.

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