According to data from the China Association of Automobile Manufacturers, from January to April, the production and sales of new energy vehicles reached 232,000 and 225,000 units respectively, representing year-on-year increases of 142.4% and 149.2%.
The expanding new energy vehicle system has led to a surge in demand for the recycling and reuse of end-of-life power batteries. According to the China Automotive Technology Research Center, considering factors such as vehicle lifespan and battery lifespan, the cumulative amount of end-of-life power batteries scrapped nationwide will reach 120,000 to 200,000 tons between 2018 and 2020; by 2025, the annual scrapping volume may reach 350,000 tons. BAIC has stated that improper disposal of retired power batteries could potentially cause environmental pollution. Therefore, promoting the recycling and resource-based treatment of new energy vehicle power batteries and establishing a comprehensive automotive circular economy system is crucial.
Battery recycling enters "specialized" mode
On February 26th of this year, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the Ministry of Environmental Protection, the Ministry of Transport, the Ministry of Commerce, the General Administration of Quality Supervision, Inspection and Quarantine, and the National Energy Administration jointly issued the "Interim Measures for the Management of Recycling and Utilization of Power Batteries for New Energy Vehicles," which emphasizes the implementation of the extended producer responsibility system and requires automobile manufacturers to assume primary responsibility for the recycling of power batteries. These measures will take effect on August 1st of this year. In response to the upcoming implementation of these interim measures, automakers have begun to develop their battery recycling businesses. Some automakers have chosen to collaborate with other companies to jointly promote the recycling and reuse of power batteries in China.
On January 4th of this year, 16 vehicle and battery manufacturers, including Changan, BYD, and Yinlong New Energy, reached a cooperation agreement with China Tower Corporation, a major player in power battery recycling, to address issues such as the recycling and reuse of retired power batteries. In March, SAIC Motor and CATL signed a strategic cooperation memorandum of understanding to further deepen their cooperation and explore joint efforts to promote the recycling and reuse of power batteries for new energy vehicles. This marks the second collaboration between SAIC and CATL since the announcement of a battery joint venture in 2017.
In addition, Beijing BAIC Penglong Automobile Service Trade Co., Ltd., a subsidiary of BAIC Group, recently signed a "Strategic Cooperation Framework Agreement on Recycling and Utilization of Retired Power Batteries" with GEM Co., Ltd., to cooperate in the circular economy fields such as jointly building a new energy vehicle power battery recycling system, cascade utilization of retired power batteries, resource-based treatment of waste batteries, and recycling, dismantling and reuse of scrapped vehicles.
Battery processing technology and regulations still need improvement.
Reporters learned that since 2012, policies and guidelines covering the recycling and dismantling of power batteries have been released almost every year, but the related industries such as power battery recycling and reuse are still in their infancy. Furthermore, to date, only a few automakers have made relevant investments. Both the market size and processing technology need time to mature.
At this year's Two Sessions, Li Wenhai, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) and vice chairman of the Standing Committee of the People's Congress of Jinan District, Tianjin, pointed out that my country's new energy vehicle battery recycling is facing three major challenges: a small market size for end-of-life battery recycling, low technological levels, and untimely disposal of end-of-life batteries. In response, Li Wenhai put forward three suggestions: scientifically manage this scarce resource to achieve tiered recycling and turn waste into treasure; strengthen the management of the end-of-life battery recycling market; and introduce preferential policies to support the recycling of end-of-life batteries from new energy vehicles.
Similarly, Cui Dongshu, Secretary-General of the China Passenger Car Association, also believes that companies are still immature in key technologies such as residual value assessment and health status evaluation of retired power batteries. The research and development of related technologies in the cascade utilization and recycling links are relatively lagging behind. Industry experts need to work together to promote technological innovation and application and overcome technical difficulties.
“Different car models have different battery designs, with differences in internal and external structural designs, module connection methods, and integration forms. A single disassembly line cannot be used for all battery packs and internal modules, making battery disassembly extremely inconvenient. Therefore, most processes are done manually, but the skill level of the workers can affect the yield rate during battery recycling. Therefore, it is also important to take appropriate measures and methods to ensure safety during battery disassembly,” Cui Dongshu explained to the reporter.
