SMM News, June 30:
Following the intensive project announcements across seven provinces and regions including Ningxia and Jiangxi, a new wave of lithium battery recycling projects has recently settled in Hunan, Zhejiang, Yunnan, Hubei, Anhui, Shandong, and other areas. The eight projects in this tranche are located in Huzhou, Wenzhou, and Changxing in Zhejiang; Taihe (two sites) in Anhui; Lixian in Hunan; Yongping in Yunnan; Hanchuan in Hubei; and Linyi in Shandong. Their combined planned annual processing capacity exceeds 270,000 mt (excluding second-life applications and PV modules), with a total investment surpassing 2.5 billion yuan. The categories covered include end-of-life lithium battery packs, scrap electrodes, and second-life application lines, further extending the lithium battery recycling capacity map into the central-western and Yangtze River Delta hinterlands.
Huzhou, Zhejiang: 25,000 mt Lithium Battery Second-Life and Recycling Project Approved
Recently, the Huzhou Municipal Bureau of Ecology and Environment issued an approval announcement for the Zhejiang Henghui Lithium Battery Environmental Technology Co., Ltd. New Energy Lithium Battery Resource Optimization Second-Life and Recycling 25,000 mt Project. With a total investment of 350 million yuan, the project is located in the Lingang Industrial Park, Meixi Town, Anji County. It plans to build one second-life application line, one waste lithium battery discharge line, two waste lithium battery crushing and recovery lines, and two scrap electrode crushing and screening lines. Upon completion, it is expected to achieve an annual capacity of 10,000 mt of second-life waste lithium batteries, 10,000 mt of crushing and recovery processing, and 5,000 mt of scrap electrode crushing and screening, totaling an annual processing capacity of 25,000 mt.
Yongping, Yunnan: Power Battery Renewable Resource Recycling Project EIA Accepted
Recently, the official website of the Yongping County People's Government released the EIA acceptance notice for the Yongping Fengqiyuan Resource Development Management Co., Ltd. NEV and Power Battery Renewable Resource Recycling Industrialisation Project. With a total investment of approximately 125 million yuan, the project is located in the Taoxin area of the Yongping Industrial Park. It plans to build NEV charging and battery swapping and LNG filling stations, NEV dismantling and power battery second-life application production lines, and a recycling technology R&D centre. Upon completion, it will form comprehensive production capacity for NEV dismantling and power battery second-life applications.
Wenzhou, Zhejiang: 40,000 mt Lithium Battery Recycling Project Signed
Recently, the Wenzhou Venture Capital Fund, under Wenzhou State Capital Investment and Operation Co., Ltd., together with the Wenzhou Marine Economic Development Zone state-owned platform, completed the B+ round equity investment signing with Wuhan Ruikemei New Energy Co., Ltd., a nationally recognised high-tech enterprise. The project, with a total investment of 500 million yuan, will be located in the Wenzhou Marine Economic Development Zone, building a 40,000 mt lithium battery recycling demonstration production site. Once in operation, it will fill a gap in Wenzhou's new energy battery carbon recycling industry, establishing a complete green chain of battery "production—application—recycling—regeneration."
Hanchuan, Hubei: 20,000 mt Waste Lithium Battery Processing Project Filed
Recently, the Hanchuan Municipal Development and Reform Bureau filed a public notice for the Hubei Xinchi Lithium Technology Co., Ltd. Annual Processing of 20,000 mt of Waste Lithium Batteries Project. The project, located in Hanchuan, will form an annual production capacity for processing 20,000 mt of waste lithium batteries upon completion.
Taihe, Anhui: 55,000 mt Scrap New Energy Battery Recovery and Comprehensive Utilization Project EIR Public Consultation
Recently, the Taihe County People's Government released a public notice for the draft environmental impact report of the Anhui Lukong Environmental Protection Co., Ltd. Annual Processing of 55,000 mt of Scrap New Energy Batteries Recovery and Comprehensive Utilization Project. With a total investment of 1.176 billion yuan, the project is located in the Green New Energy Base of Taihe Economic Development Zone and will be constructed in two phases. Upon completion of Phase I, the annual output is expected to be approximately 1,059 mt of lithium carbonate and 6,431 mt of iron phosphate; upon completion of Phase II, the annual output is expected to be approximately 2,418 mt of second-life batteries, 20,000 mt of nickel sulphate, 6,666 mt of cobalt sulphate, and 4,223 mt of lithium carbonate.
Taihe, Anhui: 20,000 mt Scrap New Energy Battery Comprehensive Utilization Project First EIA Public Notice
Recently, the Taihe County Tianchang Plastic Technology Co., Ltd. Annual Processing of 20,000 mt of Scrap New Energy Batteries Comprehensive Utilization Project initiated its first EIA public notice. With a total investment of 210 million yuan, the project is located in the New Energy Industrial Park, Xiaokou Town, Taihe County. It plans to build a production line for processing 20,000 mt of scrap lithium batteries annually (10,000 mt ternary, 10,000 mt LFP) and 5,000 mt/year for second-life applications, supported by auxiliary public works including wastewater treatment. Upon completion, the annual output is expected to be 7,000 mt of battery-grade lithium carbonate and 1,000 mt of copper powder.
Linyi, Shandong: 15,000 mt Scrap Lithium Battery Recycling and Reuse Project EIA Public Notice
Recently, Shandong Business Daily published the first EIA announcement for the Linyi Bucui Weimang Environmental New Materials Co., Ltd. Annual Processing of 15,000 mt of Scrap Lithium Batteries Recycling and Reuse Expansion Project. With a total investment of 50 million yuan, the project is located in the Yimhe New District, Linyi. It plans to build a safety storage room for scrap lithium batteries and one recycling and reuse production line. Upon completion, it is expected to have an annual processing capacity of 15,000 mt of scrap lithium battery materials, recovering approximately 12,500 mt in total of 3C lithium battery black mass, LFP black mass, ternary lithium battery black mass, and scrap battery cell black mass.
Changxing, Zhejiang: 100,000 mt Scrap Lithium Battery Full Life Cycle Comprehensive Utilization Project EIA Public Notice
Recently, the Changxing County People's Government released the EIA public notice for the Zhejiang Lisheng Energy Co., Ltd. Lithium Battery Full Life Cycle Comprehensive Utilization Base Construction Project. With a total investment of approximately 82.06 million yuan, the project is located in Xiaopu Town, Changxing County. It plans to build production lines for scrap lithium battery recycling and reuse, second-life application, dismantling and crushing regeneration treatment, as well as Pack production, battery cell detection and sorting, and module assembly lines. Upon reaching full production, it is expected to process 100,000 mt of scrap lithium batteries and electrodes annually, producing 3 GWh of high-energy Pack battery packs per year.
Lixian, Hunan: 100,000 mt End-of-Life Lithium Battery Recycling and Treatment Project Settled
Recently, the Lixian County People's Government issued an announcement on the settlement of the new energy circular economy and energy storage equipment industrial project in Lixian County. The Phase I investment of the project is 500 million yuan, located in Lixian County, Changde City. It plans to build production lines for the annual recovery and treatment of 100,000 mt of end-of-life lithium batteries and 100,000 mt of end-of-life PV modules. Upon completion, it will form a production capacity for recovering and treating 100,000 mt of end-of-life lithium batteries annually, with an output value of 1 billion yuan per year upon reaching full production.
The projects in these eight provinces and cities, together with the previously intensively announced projects across seven provinces and regions, show that the national capacity build-up for lithium battery recycling has assumed a trend of "advancing simultaneously in the east and west, and unfolding comprehensively." From the project structure perspective, the trend of placing equal emphasis on second-life applications and regenerative smelting has further strengthened, with some projects extending towards a full chain of "dismantling—second-life—hydrometallurgy—pack remanufacturing." Meanwhile, the core challenges facing the industry remain prominent: whether the actual supply growth rate of end-of-life batteries can match the pace of capacity expansion, whether the issue of informal diversion channels can be effectively curbed as regulations intensify, and whether recycling profits will further diverge across categories and regions, all of which will profoundly influence the actual implementation efficiency and long-term returns of this wave of capacity construction.
SMM New Energy Research Team
Wang Cong 021-51666838
Ma Rui 021-51595780
Feng Disheng 021-51666714
Lv Yanlin 021-20707875
Zhou Zhicheng 021-51666711
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