【SMM analysis】2025 Lithium Battery Recycling Industry Policy Analysis

I. "Industry Specifications for Comprehensive Utilization of End-of-Life Power Batteries from New Energy Vehicles (2024 Edition)"

Effective Date: January 1, 2025.
Key Requirements:

1. Entry Thresholds for Enterprises:

   • Minimum registered capital of CNY 10 million.

   • Annual production capacity for recycling enterprises must be no less than 5,000 tons (regeneration) or 1,000 tons (second-life applications).

2. Technical Standards:

   • Lithium recovery rate increased from 85% to ≥90%; nickel, cobalt, and manganese recovery rates ≥98%.

   • Process wastewater recycling rate must exceed 90%.

3. R&D Investment:

   • Annual R&D expenditure must account for no less than 3% of recycling-related revenue.

II. "Action Plan for Establishing a Robust Power Battery Recycling System"

1. Policy Objectives:

   • Build a full-lifecycle traceability system using digital technologies to monitor production, sales, dismantling, and recycling processes.

   • Crack down on illegal recycling channels and promote industry standardization.

2. Key Directions:

   • Strengthen the Extended Producer Responsibility (EPR) system, requiring automakers and battery manufacturers to establish or collaborate on recycling networks.

III. Technical Standards and Environmental Requirements

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

1. Effective Date: July 1, 2025.

2. Core Requirements:

   • Define classifications and chemical specifications for recycled black mass (e.g., nickel-cobalt content ≥45%, lithium ≥6% in ternary battery black mass).

   • Standardize imported black mass quality and drive improvements in sorting and purification technologies.

Industry Analysis

The 2025 lithium battery recycling policies emphasize a dual logic of "regulation + incentives". By raising technical thresholds, strengthening full-lifecycle management, and increasing fiscal support, the policies aim to transition the industry from fragmented competition to high-quality development. Subsidies and relaxed import/export conditions are expected to alleviate long-term economic imbalances in the recycling sector.