[SMM Analysis] Number of Battery Recycling Enterprises Shows Explosive Growth

According to the latest statistics from the National Organization Unified Social Credit Code Data Service Center, as of October 31, 2025, the number of enterprises related to battery recycling in China had approached 180,000. Over 30,000 new enterprises were added within a year, making the battery recycling industry a veritable investment hot topic. As the early batches of power batteries put into the market enter a concentrated retirement phase, a market worth hundreds of billions of yuan is taking shape.

Despite the broad market prospects, the battery recycling industry still faces numerous challenges.

The MIIT has released five batches totaling 156 enterprises on the "white list" for the comprehensive utilization of waste power batteries, yet the overall standardized recycling rate in the industry remains low.

According to incomplete statistics, the current standardized recycling rate for NEV power batteries in China is less than 25%, with a large number of retired power batteries failing to enter formal recycling channels.

These non-compliant enterprises, not needing to spend funds on safety and environmental protection, often "intercept" retired power batteries that could have flowed into formal channels by offering higher recycling quotes. This forces compliant enterprises to raise their purchase prices, further exacerbating losses.