[SMM Analysis] Another Lithium Battery Recycling Project Commences in Guangzhou

Recently, a significant piece of news has stirred up waves in the new energy sector—the official release of the "Guangdong Yu Hang New Energy Co., Ltd. 500,000 mt/year Lithium Battery Recycling Low-Carbon Plant (Phase I: 103,000 mt/year) and High-End Lithium Battery Material R&D Center Project" on a relevant website. The project is located in Huangge Town, Nansha District, Guangzhou City, marking a solid step forward for Guangdong and even the entire country in the field of power battery recycling and reuse, injecting new vitality into the sustainable development of the industry.

It is reported that the project is grand in scale and will establish multiple high-efficiency production lines, including an annual 15,000 mt LFP positive pole piece raw material pretreatment line, an 80,000 mt LFP powder production battery-grade lithium carbonate line, and an 8,000 mt crude lithium carbonate refining high-purity lithium carbonate production line. Currently, in terms of policy incentives, Guangdong Province offers a maximum reward of 30% of the fixed asset investment for eligible recycling projects; cities like Guangzhou and Shenzhen are actively exploring the construction of regional recycling centers.

SMM believes that currently, China accounts for over 70% of the global lithium battery recycling market share. Relying on tens of thousands of standardized recycling outlets, the domestic lithium battery recycling market is expected to form a trillion-yuan-level market by 2030, standing alongside upstream mining and midstream manufacturing, showcasing enormous development potential. As one of the few countries globally with full-cycle control capabilities over lithium resources from "mining - application - regeneration," China is positioning lithium battery recycling as the "urban mine" of the new energy era, which is not only related to environmental benefits but also a strategic stronghold for ensuring resource security. In terms of technological breakthroughs, domestic enterprises have mastered core technologies such as live battery crushing and intelligent sorting, and have developed various direct regeneration processes for LFP, ternary, and LCO, further enhancing the efficiency and quality of lithium battery recycling. In the process of rapid industrial development, how to further improve the recycling network, enhance technological competitiveness, promote industry standardization, and establish a scientific and reasonable pricing system for recycled materials have become key to the sustainable development of the lithium battery recycling industry.

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