[SMM Analysis] Summary of the "Guidelines for the Construction of a Recycling System for Lithium-Ion Batteries in Electric Bicycles"

SMM January 26 News: With the rapid development of China's electric bicycle industry, there are currently approximately 380 million electric bicycles in stock, of which about 20% are equipped with lithium batteries. To strengthen the management of lithium-ion battery recycling and comprehensive utilisation for electric bicycles, promote efficient resource recycling, and drive high-quality development of the electric bicycle industry, the National Electric Bicycle Safety Hazard Full-Chain Rectification Task Force has issued the "Guidelines for the Construction of Lithium-Ion Battery Recycling Systems for Electric Bicycles," proposing new requirements in areas such as recycling models, responsibility allocation, and convenience measures.

Construction Principles:

The "Construction Guidelines" adhere to the principles of "enterprise responsibility, government guidance, local adaptation, full-chain linkage, and safety and convenience," focusing on the following four aspects:

1. Enterprise Responsibility: Encourage electric bicycle producers to take primary responsibility for lithium battery recycling by establishing recycling networks through self-construction, cooperative construction, or third-party delegation, and providing recycling services.

2. Local Adaptation: Guide localities to design and build lithium battery recycling and utilisation systems tailored to local conditions, based on work mechanisms, functional divisions, regional distribution of electric bicycles, and existing recycling channels for renewable resources.

3. Safety Baseline: Recycling service outlets should meet safety and environmental protection requirements, and transportation enterprises should comply with regulations on the transport of hazardous goods to ensure safety in all stages of lithium battery recycling, storage, transfer, and utilisation.

4. Key Linkage: Ensure seamless connection for lithium batteries entering different recycling channels, as well as the linkage from the scrap stage to the recycling stage and then to the processing stage.

Recycling Models:

The construction of lithium battery recycling and utilisation systems for electric bicycles in various regions should align with local realities, coordinate the layout of recycling service networks, and adopt one or more of the following methods to provide recycling services:

1. Electric bicycle producers can establish lithium battery recycling service networks in administrative regions where their brand's electric bicycles are sold.

2. Lithium battery producers for electric bicycles can collaborate with electric bicycle producers to build lithium battery recycling service networks.

3. Leverage existing recycling channels, such as renewable resource recycling points, transfer stations, and sorting centers within the renewable resource recycling network.

4. Localities may also choose other recycling models based on local conditions.

Responsibility Allocation:

1. Electric Bicycle Producers: Take primary responsibility for lithium battery recycling and provide recycling services through various channels in administrative regions where their products are sold.

2. Lithium Battery Producers for Electric Bicycles: Safely store lithium batteries awaiting scrapping that are generated during product development, production, and assembly, and transfer them to comprehensive utilisation enterprises in a regulated manner.

3. Electric bicycle sharing operators, battery leasing operators, after-sales service outlets, and electric bicycle repair outlets: Safely store lithium batteries awaiting scrapping that are generated during use, operation, trade-in, and repair, and transfer them to recycling service outlets or comprehensive utilisation enterprises through regulated channels.

4. Individual Consumers: Timely transfer lithium batteries awaiting scrapping, generated during the replacement or scrapping of electric bicycles, to recycling service outlets through regulated channels.

Convenience Measures:

1. Support the development of integrated models for lithium battery recycling, transportation, and processing in various regions, ensuring the connection between recycling services and health assessment work to reduce intermediate steps.

2. Guide recycling service outlets to set up prominent informational signage at business premises, marked as "Electric Bicycle Lithium-Ion Battery Recycling Service Outlet," to facilitate regulated transfer by consumers.

3. Use media such as radio, television, newspapers, and the internet, and leverage the publicity platforms of grassroots organizations like village (community) committees to disclose information about recycling service outlets. Increase awareness of regulated recycling and scientific processing of lithium batteries, expand publicity coverage, enhance public safety awareness, and guide consumers to transfer lithium batteries in a regulated manner.

SMM New Energy Research Team

Cong Wang 021-51666838

Rui Ma 021-51595780

Disheng Feng 021-51666714

Ying Xu 021-51666707

Yanlin Lü 021-20707875

Yujun Liu 021-20707895

Xiaodan Yu 021-20707870

Zhicheng Zhou 021-51666711

He Zhang 021-20707850