The rapid development of the new energy vehicle industry in recent years has not only generated a large number of used batteries but also created a huge market for the secondary use of power lithium batteries. At the same time, the standardization of power lithium batteries, which the battery industry has been eagerly anticipating, has progressed slowly. Today, we'll explain why the standardization of secondary use is so difficult.
The market for the secondary use of retired batteries is vast.
The continuous increase in the number of new energy vehicles has led to a constant increase in the number of retired power lithium batteries. A report titled "Sustaining Resources: The Circular Economy Potential of New Energy Vehicle Batteries in 2030," jointly released in October by Greenpeace and the China Environmental Protection Federation, estimates that by 2030, the total capacity of power lithium batteries used in passenger electric vehicles worldwide will reach 463 GWh, facing large-scale retirement. If these retired batteries are reused, they could almost cover the global electricity demand for energy storage, with a total value reaching 100 billion RMB, approximately 25 times that of 2019.
The report points out that by 2025, approximately 32 GWh of retired batteries from new energy vehicles in my country will be available for reuse, which is sufficient to cover the backup power needs of 5G communication base stations nationwide.
The report also points out that developing sustainable business models is key to the development of the secondary use of power lithium batteries. Currently, a relatively mature international model involves automakers leading the application of retired batteries in the energy storage field. In my country, a more mature model involves state-owned companies such as my country Tower and State Grid leading the reuse of retired commercial vehicle batteries.
In fact, my country has already clearly defined its goal of developing the cascade utilization of power lithium batteries and has announced several supporting policies.
In January of this year, the Ministry of Industry and Information Technology released the "Industry Standard Conditions for Comprehensive Utilization of Waste Power Batteries for New Energy Vehicles (2019 Edition)" and the "Interim Measures for the Administration of Industry Standard Announcements for Comprehensive Utilization of Waste Power Batteries for New Energy Vehicles (2019 Edition)," encouraging comprehensive utilization companies engaged in cascade utilization to carry out cascade utilization of power lithium batteries in areas such as base station backup power, energy storage, and charging/swapping, thereby improving the overall economic benefits of batteries.
The Department of Energy Conservation and Comprehensive Utilization of the Ministry of Industry and Information Technology also organized the compilation of the "Administrative Measures for the Cascade Utilization of Power Batteries for New Energy Vehicles", and released the draft for public comment in October this year.
According to the document, companies engaged in the reuse of recycled products are encouraged to develop and produce such products suitable for base station backup power, energy storage, and charging/swapping. However, they are prohibited from developing reused products that are difficult to recycle, such as power banks and handheld lighting devices. Business models that facilitate the recycling of reused products, such as leasing and large-scale utilization, are encouraged.
In addition, companies engaged in the secondary use of batteries are encouraged to cooperate with companies that manufacture new energy vehicles, power batteries, and scrapped motor vehicles to strengthen information sharing, utilize existing recycling channels, and efficiently recycle used power batteries for secondary use.
On November 2, the General Office of the State Council issued the Development Plan for the New Energy Vehicle Industry (2021-2035) (hereinafter referred to as the Plan). The Plan mentions improving the recycling system for power lithium batteries, including their tiered utilization and resale, and encouraging the joint construction and sharing of recycling channels. It also calls for establishing and improving management systems for the transportation, storage, maintenance, safety inspection, retirement, and recycling of power lithium batteries, and strengthening full life-cycle supervision.
It is evident that standardization of power lithium batteries and their secondary use is of great significance.
The significance of standardization of power lithium batteries and their secondary use
We all know that secondary use and recycling are crucial steps in the disposal of retired batteries. The secondary use of power lithium batteries is of great significance in terms of resource security, energy conservation and environmental protection, extending the industrial chain, and economic benefits.
It is worth noting that due to differences in battery service and usage time, production processes, and design concepts, the types of retired power lithium batteries are not uniform.
These differences create numerous inconveniences for the recycling, reuse, and dismantling of power lithium batteries, posing significant safety hazards and causing environmental damage. However, if power lithium batteries could be standardized, the efficiency of retired battery disposal would be greatly improved.
Current research on the handling of small-scale retired batteries can prepare for large-scale battery retirement in the future.
Standardization of secondary battery utilization is currently difficult due to various reasons, such as the lack of unified standards for the retirement of power lithium batteries in different fields, and some companies prematurely retiring batteries in order to obtain subsidies. However, we can make some efforts to achieve unified standards for secondary battery utilization.
How can we achieve standardized practices for tiered utilization?
First, policies and regulations have been further improved. These policies and regulations standardize all aspects of battery production, recycling, and reuse, and to some extent, urge the industry to develop rapidly.
Second, a sound technical standards system is needed. Establishing a technical standards system for the cascade utilization of power lithium batteries will facilitate the management of retired batteries and make the work easier.
Third, strengthen technological research and development. Technology is the primary productive force. Efficient technologies for identifying the health status of retired batteries reduce the speed and difficulty of data identification, thereby lowering the overall cost of reuse.
In conclusion, there are still many hurdles to overcome in the standardization of power lithium batteries. However, with the joint efforts of all parties, we believe that day is not far off!
