Introduction: The Ministry of Industry and Information Technology believes that, in terms of development trends, the market prospects for cascade utilization are broad and it has become a hot spot in the industry. Some companies are exploring new business models such as "leasing instead of selling" in the field of cascade utilization.
It is predicted that by 2020, the cumulative amount of retired power batteries from new energy vehicles in my country will reach 25 GWh. Such a large scale of retired power batteries, if not properly disposed of, will inevitably cause a new round of pollution to the ecological environment and will also affect the healthy development of my country's new energy vehicle and power battery industries. The Ministry of Industry and Information Technology (MIIT) believes that, from a development trend perspective, the market prospects for cascade utilization are broad and have become a hot topic in the industry, with some companies exploring new business models such as "leasing instead of selling" in the cascade utilization field. However, it also points out that although cascade utilization technology has made some progress, many problems still exist. Therefore, this week, the MIIT issued four documents focusing on the power battery recycling market.
According to the Ministry of Industry and Information Technology, there are currently two models for the construction of a recycling system for power batteries of new energy vehicles: one is led by automobile manufacturers, who utilize their sales channels to build a recycling system for retired batteries, transferring them to comprehensive utilization companies for processing or cooperating with them to jointly utilize the remaining value of the batteries; the other model involves very few automakers acting alone in terms of recycling strategy, with the general trend being to choose to cooperate with third-party recycling companies or battery companies in a "team" approach. Currently, the main legitimate manufacturers involved in battery recycling in China are mostly third-party recycling companies such as Guanghua Technology, GEM, Ganzhou Haopeng, and Hunan Bangpu, as well as lithium battery material companies such as Huayou Cobalt and Tinci Materials, and power battery companies such as BYD, Guoxuan High-Tech, and CATL.
The Ministry of Industry and Information Technology (MIIT) found in its research that the amount of power batteries currently retired from new energy vehicles is still relatively small, and their reuse is mostly in the experimental and demonstration stage, mainly concentrated in areas such as backup power and energy storage. Many companies have already explored some business models, and there has also been progress in technological innovation. Taking the top ten automakers as an example:
BAIC New Energy
As early as June 2016, BAIC New Energy and Xinxiang Battery Research Institute established Beijing Jiangxin Battery Technology Co., Ltd. in Beijing to fully integrate the industry's market, technology, materials, cells, retired batteries, and decomposition resources to carry out research and innovation on the development of new battery systems and their cascade utilization.
In 2017, BAIC New Energy launched the "Optimus Prime Plan," aiming to invest 10 billion yuan by 2022 to build 3,000 photovoltaic-storage-battery swapping stations nationwide, deploy a total of 500,000 battery swapping vehicles, and utilize over 5GWh of cascaded energy storage batteries. The photovoltaic-storage-battery swapping stations will utilize batteries in a cascaded manner, using them as energy storage devices to provide energy replenishment for the swapping stations and power batteries.
On May 8, 2018, BAIC Penglong and GEM Co., Ltd. signed a "Strategic Cooperation Framework Agreement on Recycling and Utilization of Retired Power Batteries". The two parties will engage in in-depth cooperation in areas such as jointly building a new energy vehicle power battery recycling system, the cascade utilization of retired power batteries, the resource-based treatment of waste batteries, the recycling, dismantling, and reuse of scrapped vehicles, as well as the sales and after-sales service of new energy vehicles.
On November 12, 2018, BAIC Penglong and Guanghua Technology signed a cooperation agreement. The two parties will cooperate on businesses such as the cascade utilization of retired power batteries and the recycling and processing system for waste batteries, leveraging their respective strengths to jointly build a waste power battery recycling network system for the public. BAIC Penglong will invest in Zhuhai Zhongli New Energy Technology Co., Ltd. and Zhuhai Zhongli New Energy Materials Co., Ltd., both wholly-owned subsidiaries of Guanghua Technology.
WM Motor
WM Motor is among the first batch of vehicle manufacturers nationwide to submit information on its recycling service outlets. The first batch (a total of 26 outlets) of information submissions has been completed and incorporated into the recycling system construction. Currently, the "WM Motor Battery Traceability Upload System" has been established, completed its connection and integration with the national platform, and is in use.
In early November 2018, WM Motor and China Tower Corporation Limited signed a strategic cooperation agreement to cooperate on battery tiered utilization and battery recycling.
In early 2019, WM Motor and CELONG Electronics signed a strategic cooperation agreement on the recycling and utilization of power batteries. The two parties agreed to promote the application of cascade battery energy storage systems nationwide and will carry out energy storage project operations in the future.
Chery Wanda
In February 2019, Chery Wanda Guizhou Bus Co., Ltd. and Guanghua Technology signed a cooperation agreement to collaborate on waste battery recycling and the remanufacturing of power battery materials. Chery Wanda will entrust Guanghua Technology with the disposal of its waste cells, modules, electrode sheets, and retired power battery packs that meet Guanghua Technology's recycling standards, jointly establishing a waste power battery recycling network to ensure the orderly recycling and standardized processing of waste power batteries. Chery Wanda is a subsidiary of Chery Commercial Vehicle (Anhui) Co., Ltd.
Guangxi Huaao Automobile
On November 20, 2018, Guangxi Huaao Automobile Manufacturing Co., Ltd. and Guanghua Technology signed a "Strategic Cooperation Agreement on the Recycling and Disposal of Waste Power Batteries".
According to the agreement, the two parties will cooperate in the field of waste power battery recycling. Guangxi Huaao will hand over its waste cells, modules, electrode sheets and retired power battery packs that meet the relevant recycling standards to Guanghua Technology for disposal, and jointly establish a waste power battery recycling network to ensure the orderly recycling and standardized treatment of waste power batteries.
BYD
BYD and GEM Co., Ltd. reached a cooperation agreement in September 2015 to jointly build a circular system of "material recycling - battery recycling - new energy vehicle manufacturing - power battery recycling". In January 2018, BYD signed a strategic partnership agreement with China Tower Corporation for the recycling and utilization of new energy power batteries.
Furthermore, BYD itself has long been engaged in power battery recycling. In the recycling process, BYD primarily uses authorized dealers to collect used power batteries. When a customer requests a replacement or a vehicle needs a battery replacement due to being scrapped, the dealer will transport the replacement battery to BYD's Baolong factory for initial testing. If the used battery is still usable, it may be used in areas such as home energy storage or base station backup power. In addition, BYD also recycles the battery electrolyte.
SAIC Motor
In March 2018, SAIC Motor and CATL signed a strategic cooperation memorandum of understanding to explore jointly promoting the recycling and reuse of power batteries for new energy vehicles.
On January 10, 2019, SAIC-GM-Wuling Automobile Co., Ltd. and Peng Hui Energy signed a strategic cooperation agreement to conduct in-depth cooperation in the field of new energy vehicle battery power. According to the agreement, the two parties will leverage their respective resource advantages to jointly develop and produce related cascade utilization products.
SAIC-GM has also partnered with companies such as GEM Co., Ltd., Saidemei Co., Ltd., Shanghai Huadong Auto Dismantling Co., Ltd., and Henan Mutong Environmental Protection Industry Co., Ltd. to jointly build recycling networks.
Changan Automobile
In January 2018, 16 vehicle and battery companies, including Chongqing Changan, BYD, and Yinlong New Energy, signed a strategic partnership agreement with China Tower Corporation on the recycling and utilization of power batteries for new energy vehicles.
GAC New Energy
GAC New Energy's intelligent ecological factory has built its own power battery energy storage facility, which can recycle power batteries and reuse them in stages to store surplus energy. The first phase of energy storage capacity reaches 1,000 kilowatt-hours, truly achieving sustainable development.
Skyworth Auto
On January 16, 2019, Enovate Motors and Huayou Recycling signed a strategic cooperation agreement. The two parties will become long-term strategic partners and will continue to deepen their cooperation in the field of secondary utilization of power batteries for new energy vehicles and material recycling.
Nanjing Golden Dragon
On November 19, 2018, Nanjing Golden Dragon Bus Manufacturing Co., Ltd. and Guanghua Technology signed a "Strategic Cooperation Agreement on the Recycling and Processing of Waste Power Batteries". The two parties will cooperate on the recycling and processing of waste batteries and the recycling of power battery materials, creating a supply chain cooperation model of "scrap batteries and battery waste - battery raw material remanufacturing - power battery material remanufacturing".
