China's growing new energy vehicle (NEV) fleet and the rise in trade-ins are driving growth in the battery recycling market.
Statistics indicate that China's NEV fleet has so far surpassed 28 million units, and the country's total volume of retired power batteries has reached 580,000 tons, with the recycling market projected to exceed 100 billion yuan (about 14 billion U.S. dollars) by 2030.
"Taxis' batteries are basically retired after about eight years, while private vehicles tend to last a bit longer, around eight or nine years. We assess the battery based on the distance the vehicle has traveled and the remaining charge capacity," said Liu Xiaohui, chairman of Huanyu New Energy Technology Co., Ltd, which specializes in the recycling, disassembly, testing, and reuse of retired power batteries.
Generally, batteries are eligible for recycling when their capacity drops below 80 percent. The price of recycled batteries varies depending on their type, residual value, and raw material costs.
"Currently, the price of lithium carbonate is relatively low. Recycled and refurbished lithium iron phosphate (LiFePO4) batteries are generally priced between 6,000 and 8,000 yuan (about 828 to 1,105 U.S. dollars) per ton, while lithium-ion ternary batteries are priced between 20,000 and 25,000 yuan (about 2,761 to 3,452 U.S. dollars) per ton," Liu said.
At present, battery recycling companies mainly collect batteries in bulk from local bus or taxi fleets or by setting up collection stations, with fewer opportunities for direct recycling from individual vehicle owners.
Most car owners either go through car manufacturers for recycling or trade in their vehicles directly.
With the government's intensified efforts to promote trade-ins this year, the replacement of aging electric buses across China is accelerating, fueling a new wave of battery retirements and offering fresh opportunities for the recycling sector.
"In the next three years, we expect around 300,000 to 400,000 old buses to be replaced. This will likely increase battery retirements by 20 to 30 percent compared to last year," Liu said.
"The installed capacity of power batteries is expected to grow by at least 30 percent from last year. With the retirement of batteries from 2015 and 2016 models, the volume of retired batteries is rising sharply, creating significant opportunities for our business," said Li Bin, deputy general manager of a renewable energy tech company in east China's Jiangxi Province.
China’s NEV battery recycling market set for growth with trade-in surge
