SMM, June 30:
In H1 2026, capacity construction in lithium battery recycling accelerated markedly, with seven provinces and regions—Ningxia, Jiangxi, Hunan, Anhui, Sichuan, Hubei, and Xinjiang—collectively announcing EIA filings for a number of scrap lithium battery recycling and comprehensive utilization projects. These projects cover multiple categories of end-of-life resources, including LFP and ternary battery packs, positive and negative electrodes, and wire and cable, signaling a clear trend of lithium battery recycling expanding from the eastern seaboard into the central and western interior.
By project scale, those exceeding the 10 kt level dominated:
Ningxia Yinchuan: EIA accepted for 12,000 mt Comprehensive Utilization Project for End-of-Life Power Batteries
Recently, the Ningxia Government Service website published the acceptance announcement for the environmental impact assessment (EIA) document for the Ningxia Jusheng Technology Co., Ltd. Annual Processing of 12,000 mt New Energy End-of-Life Power Battery Recycling, Dismantling, and Comprehensive Utilization Project. With a total investment of 73 million yuan, the project, sited in Yanghe Town, Yongning County, Yinchuan, plans to build one crushing line for scrap lithium battery positive/negative electrodes, two recycling and processing lines for scrap wire and cable, one dismantling line for end-of-life power battery packs, and one individual cell crushing and sorting line. Upon completion, it will be capable of processing 12,000 mt of end-of-life power batteries annually, comprising 5,400 mt of LFP battery packs, 600 mt of ternary battery packs, 2,200 mt each of LFP positive and negative electrodes, 1,440 mt of scrap copper wire and cable, and 160 mt of scrap aluminum wire and cable.
Jiangxi Yingtan: EIA to be accepted for 40,000 mt Comprehensive Utilization Project for Scrap Lithium Battery Materials
Recently, the Yingtan Municipal Bureau of Ecology and Environment issued a pre-acceptance announcement for the environmental impact report for the Jiangxi Lixingyao Circular Technology Co., Ltd. Comprehensive Utilization Project for Scrap Lithium Battery Materials. With a total investment of 100 million yuan, the project, located in the Yujiang Industrial Park, Yujiang District, Yingtan, is planned to annually process 5,000 mt of end-of-life LFP battery packs, 5,000 mt of end-of-life ternary battery packs, 10,000 mt of scrap LFP cathode material, and 10,000 mt of scrap LFP anode material, reaching a total annual comprehensive utilization of 40,000 mt of scrap lithium battery materials upon completion.
Hunan Changsha: EIA accepted for 10,000 mt End-of-Life Battery Recycling and Resource Recovery Project
Recently, the Ningxiang Branch of the Changsha Municipal Bureau of Ecology and Environment published the acceptance announcement for the environmental impact report for Hunan Zhongbang Zaisheng Resources Technology Co., Ltd. End-of-Life Battery Recycling and Resource Recovery Project (Phase I). With a total investment of 30 million yuan, the project, sited in the Ningxiang Economic and Technological Development Zone, plans to build one scrap lithium battery and separator crushing and pyrolysis production line, capable of annually processing 10,000 mt of scrap lithium batteries and separators and producing 4,100 mt of lithium battery black mass and 2,590 mt of copper and aluminum materials yearly.
Anhui Jieshou: EIA public disclosure for 20,000 mt Scrap Lithium Battery Recycling and 30,000 mt Recycled Plastics Project
Recently, the official website of the Jieshou Municipal People’s Government published the first public disclosure of EIA information for the Jieshou Chunxin Lead Industry Co., Ltd. Annual Recycling of 20,000 mt of End-of-Life New Energy Lithium Batteries and Annual Production of 30,000 mt of Recycled Plastic Products Project. With a total investment of 100 million yuan, the project, located in the Tianying Science and Technology Park in the Jieshou High-Tech Zone, plans to build two crushing lines for scrap lithium battery recycling, four production lines for plastic pellets, and four production lines for plastic products, enabling an annual processing capacity of 20,000 mt of end-of-life new energy lithium batteries and an annual output of 20,000 mt of modified plastic pellets and 10,000 mt of plastic products upon completion.
Sichuan Gaoxian: EIA seeking comments for 80,000 mt Scrap Lithium Battery Dismantling and Comprehensive Utilization Project
Recently, the official website of the Gaoxian County People’s Government published the draft EIA report for public comment for the Jiushi New Energy (Sichuan) Co., Ltd. Gaoxian 80,000 mt Scrap Lithium Battery Dismantling and Comprehensive Utilization Project. With a total investment of 300 million yuan, the project, located in the Yibin Circular Economy Industrial Park, plans to build 10 battery dismantling and crushing lines, including 3 LFP crushing lines, 2 ternary crushing lines, 2 LFP positive electrode processing lines, 2 LFP negative electrode processing lines, and 1 second-life application line, with an annual capacity to dismantle and comprehensively utilize 80,000 mt of scrap lithium batteries.
Hubei Yichang: EIA seeking comments for 300,000 mt End-of-Life LFP Battery Recycling and Reuse Project
Recently, the Yichang Municipal Bureau of Ecology and Environment issued a public comment notice for the draft EIA report for the Yichang Brunp Recycling Technology Co., Ltd. Yichang Brunp Recycling 300,000 mt End-of-Life LFP Battery Recycling and Reuse Project. With a total investment of 1.066 billion yuan, the project, sited in the Yichang Yaojiagang Chemical Park, plans to build systems for hydrometallurgical leaching, impurity removal, lithium chemical synthesis, phosphorus-iron synthesis, and supporting water treatment, warehousing, and logistics. Upon completion, it will be able to process 300,000 mt of end-of-life LFP battery packs annually, adding new capacity of 22,500 mt/year of lithium carbonate, 90,000 mt/year of iron phosphate, and 64,000 mt/year of sodium sulfate decahydrate.
Xinjiang Kashgar: EIA public disclosure for 20,000 mt End-of-Life Battery Crushing and 50,000 Units Second-Life Application Project
Recently, the Xinjiang Uygur Autonomous Region Ecological and Environmental Protection Industry Association published the first public disclosure of EIA information for the Kashgar Economic Development Zone New Energy Vehicle End-of-Life Power Battery Second-Life Application and Crushing Recovery Integrated Project. The project, located in the northern area of the Kashgar Economic Development Zone, plans to build a second-life application line with an annual capacity of 50,000 units of end-of-life power batteries and a crushing and sorting line with a 20,000 mt annual capacity, achieving integrated second-life application and crushing-sorting disposal capability upon completion.
These seven regional projects spanned core segments of the lithium battery recycling industry chain, from crushing and smelting to second-life application, reflecting that industry capacity construction has entered a new phase of concentrated project launches. Notably, however, national end-of-life battery supply still lags the pace of capacity expansion, and structural divergences in raw material access, compliance barriers, and recycling profitability will become key variables determining whether these new projects can reach full production and achieve profitability as scheduled. As capacity across regions comes online, the industry’s competitive center is expected to shift from “territory grabbing” to “refined operations.”
SMM New Energy Research Team
Wang Cong 021-51666838
Ma Rui 021-51595780
Feng Disheng 021-51666714
Lyu Yanlin 021-20707875
Zhou Zhicheng 021-51666711
