[SMM Analysis] Battery Recycling Track Continues to Gain Momentum

With the arrival of the large-scale retirement period for the first batch of NEV power batteries in China, a massive "urban mine" is taking shape. It is projected that the volume of retired power batteries in China will reach 820,000 mt in 2025 and exceed the 4 million mt threshold starting in 2028. By 2030, the domestic power battery recycling market size is expected to surpass 100 billion yuan. In response to the approaching wave of battery retirements, various regions are accelerating their strategic layouts.

On December 17, the People's Government of Xiajiang County, Ji'an City, Jiangxi Province, published the "First Public Notice on the Environmental Impact Assessment for the Expansion Project of Jiangxi Huili New Material Co., Ltd.'s Annual Processing of 15,000 mt of Retired LFP Batteries" on its official website, marking the official launch of the construction process for this battery recycling project with a total investment of 30 million yuan.

Public information indicates that the company already operates a sizable end-of-life battery recycling project in the Chengnan Industrial Park of Xiajiang County, with an annual capacity for second-life application of 32,000 mt of retired power batteries, covering both LFP and ternary batteries.

The expansion project, with a planned investment of 30 million yuan, will utilize existing factory buildings and add a new advanced production system including oxygen-free crushing and oxygen-free pyrolysis. The project scale is set at an annual processing capacity of 15,000 mt of retired LFP batteries.

On December 18, the People's Government of the Suburban District of Yangquan City officially released the "Second Public Notice on the Environmental Impact Assessment for the Comprehensive Utilization Project of Yangquan Wanlitong Environmental Protection Technology Co., Ltd.'s Annual Processing of 120,000 mt of Scrap New Energy Power Batteries."

According to the announcement, the project is located in the Weibo Park of the Modern Equipment Manufacturing Industrial Park in Yangquan High-tech Industrial Development Zone, with a total floor area of 136,000 m². The project plans to purchase scrap lithium battery processing equipment and establish a total of 12 production lines to achieve the ultimate goal of annually processing 120,000 mt of scrap new energy power batteries.

The project adopts a steady, phased approach. The first phase will initially establish a capacity for disassembly and crushing of 20,000 mt of scrap batteries and a capacity for second-life application of 5,000 mt of scrap batteries. This layout of "second-life application + disassembly recycling" aligns with the industry's common technical pathway for maximizing the value of retired batteries.

On December 22, the official website of Shan County Government released the "Pre-Approval Public Participation Announcement for the Environmental Impact Assessment of the Comprehensive Reuse Project of Shandong Yazhou Jinshu Xunhuan Liyong Environmental Protection Co., Ltd.'s Annual Processing of 100,000 mt of Scrap Lithium Batteries."

Based on the announcement information, the project is located in the Shan County Chemical Industry Park with a total investment as high as 650 million yuan. Its technical route is clear and well-defined: it plans to process 100,000 mt of scrap lithium batteries annually, comprising 60,000 t/a of LFP single cells and 40,000 t/a of ternary lithium single cells. The project will establish a complete system including crushing and sorting, oxygen-free pyrolysis, and metal recovery, aiming to efficiently extract key strategic metals such as lithium, cobalt, nickel, and manganese from retired batteries to achieve resource recycling and reuse.

On December 23, the Ecology and Environment Bureau of Guangzhou City, Guangdong Province, issued an acceptance announcement for the environmental impact report of the "Guangdong Province New Energy Circular Economy Zero-Carbon Smart Industrial Park Guangzhou Headquarters—Retired Power Battery and Waste Lithium Battery Comprehensive Utilization Project."

Using 30,000 t/a of waste lithium-ion battery packs (assemblies) as raw materials, the project will produce second-life batteries through a second-life application process. Using 20,000 t/a of waste lithium-ion battery cells (including 900 t of waste lithium-ion cells obtained from the disassembly of waste lithium-ion battery packs (assemblies)) as raw materials, the project will produce ternary battery mixed powder and LFP battery mixed powder as main products, and aluminum granules and battery casings as by-products through a crushing and screening process.