With the increasing number of new energy vehicles, the secondary use and recycling of power lithium batteries has become a pressing issue. Given the still-developing nature of this field, operational models are particularly crucial, as they directly impact a company's interests, including costs and profitability. Currently, some domestic companies have begun to explore secondary use and recycling of power lithium batteries, employing various operational models.
BNP Paribas Group: "Power Lithium Battery + Whole Vehicle Recycling"
BANGPU Group is a high-tech enterprise specializing in the resource recycling and processing of waste batteries and end-of-life vehicles, as well as the production of high-end battery materials. Through its development in recent years, it has gradually formed three major business segments: "battery recycling, carrier recycling, and recycling services," and specializes in the recycling and processing of digital batteries and power batteries.
In response to the challenges of simultaneously scrapping new energy vehicles and their lithium-ion batteries, and the high costs associated with such disposal, BNP Paribas Group has proposed a "power lithium-ion battery and whole vehicle recycling" model. This recycling approach not only ensures safety during transportation but also reduces packaging and shipping costs. Industry insiders indicate that recycling power batteries and whole vehicles can be profitable and represents a sustainable operating model.
Currently, BNP Group has achieved an annual recycling and processing capacity of 20,000 tons of waste batteries, accounting for more than 40% of the domestic market share, realizing the recycling and regeneration of waste batteries, and has provided battery raw materials to globally renowned battery manufacturers such as BYD and CATL.
Ganzhou Haopeng: Collaborating with Automakers to Build a Recycling Network
Ganzhou Haopeng is a national high-tech enterprise specializing in the comprehensive utilization and disposal of waste power lithium batteries, lithium batteries, nickel-hydrogen batteries, and nickel-cobalt-containing waste from new energy vehicles. The company focuses on the research and development of environmental protection technologies for waste secondary batteries, and has more than 50 patented technologies. It has also participated in and led the formulation and revision of a number of national and industry standards.
In early March 2017, Ganzhou Haopeng and BAIC New Energy reached a strategic cooperation agreement. The two parties will cooperate in the field of power lithium battery recycling, and jointly build a battery recycling network by utilizing BAIC New Energy's sales channels. Ganzhou Haopeng will focus on research on cascade utilization, and the two parties will jointly develop products such as energy storage batteries and small electric vehicle batteries.
The most common model for the secondary utilization and recycling of power lithium batteries is for vehicle manufacturers and battery recycling and dismantling companies to jointly build recycling networks. Vehicle manufacturers provide the recycling network channels, while recycling companies are responsible for professional dismantling, each leveraging their strengths. The cooperation between Ganzhou Haopeng and BAIC New Energy in power battery recycling not only ensures that both companies implement the "producer responsibility system," but also becomes an indispensable and important link in BAIC New Energy's efforts to build a fully closed-loop circular industrial chain.
GEM Co., Ltd.: Partnering with battery companies to form a circular chain of "material remanufacturing - battery remanufacturing - vehicle manufacturing - battery recycling"
In 2003, GEM pioneered the concept of "urban mining" and the industrial philosophy of "limited resources, unlimited recycling," actively exploring "urban mining" models and dedicating itself to the research and industrialization of recycling and remanufacturing products from "urban mineral" resources such as waste batteries, electronic waste, scrapped vehicles, and cobalt, nickel, tungsten, and rare metal waste. In response to the "Internet+" era, GEM launched "Recycling Brother," China's first comprehensive O2O classified recycling platform, broadening the forms of battery recycling.
In September 2015, GEM Co., Ltd. and BYD began their collaboration. A key aspect of their partnership was the recycling of end-of-life batteries, aiming to jointly promote the construction of a circular system encompassing "material recycling - battery recycling - new energy vehicle manufacturing - power lithium battery recycling." BYD is the largest manufacturer of automotive power lithium batteries in China, while GEM is a leading company in the domestic lithium battery recycling field. Their collaboration will set a benchmark in the cascade utilization and recycling of power lithium batteries.
In addition, in April 2016, GEM Co., Ltd. signed a strategic cooperation agreement on green supply chain for new energy vehicles with Dongfeng Xiangyang Vehicle and Samsung SDI, achieving a strong alliance of technology, market and capital, jointly establishing a new energy vehicle supply value chain alliance, and creating a closed-loop system for the entire industrial chain of "materials - batteries - new energy vehicle manufacturing - supply chain finance and power lithium battery recycling".
Recycling channels still present challenges, and battery companies are making various attempts.
For most recycling companies, establishing recycling channels is the most difficult aspect, and the recycling of power batteries is no exception. For environmental protection companies, establishing recycling channels is relatively easy, such as the well-established sanitation systems in residential communities. However, while community recycling models are effective for recycling batteries from 3C digital products, their effectiveness for recycling lithium-ion batteries from new energy vehicles still needs to be verified in practice. This is because, given the specialized requirements for disassembling lithium-ion batteries after a new energy vehicle is scrapped, owners may not necessarily remove them themselves. Therefore, whether the community-based offline recycling channel model is the optimal approach for lithium-ion batteries from new energy vehicles remains to be seen.
In addition to the aforementioned professional recycling companies, some power lithium battery manufacturers have also made arrangements for the cascade utilization and recycling of power lithium batteries. Their operating models are not much different, and they are mostly focused on technological breakthroughs and are in the exploratory research stage. Their common feature is "first cascade utilization, then dismantling".
For example, in addition to gradually increasing its investment in lithium battery R&D and production, Chaowei Group is also continuously increasing its investment in the field of lithium battery recycling. Currently, Chaowei Group is collaborating with research institutions and universities to vigorously promote research on lithium battery recycling. Wotema began exploring routes and methods for the secondary utilization of power lithium batteries as early as five years ago, building a 3MW lithium iron phosphate battery energy storage power station using retired electric vehicle power lithium batteries. It has also developed 1200kWh, 750kWh, and 640kWh mobile charging vehicles, which are then dismantled after being used in a tiered manner during the energy storage stage. AVIC Lithium Battery has built a solar energy storage demonstration project, which is a tiered utilization of retired power lithium batteries. Furthermore, AVIC Lithium Battery also possesses the first domestic pilot production line for recycling lithium iron phosphate power lithium batteries. This demonstration line can maximize the recovery of valuable materials from power lithium batteries, with a copper and aluminum metal recovery rate of up to 98% and a cathode material recovery rate exceeding 90%.
Mengshi Technology, which started with lead-acid batteries, has expanded its main business in recent years to the clean power industry chain and the new energy vehicle industry chain. The tiered utilization of power lithium batteries has also been included in its corporate strategic development blueprint. Chen Lewu, Chairman of Mengshi Technology, stated that in Mengshi Technology's strategic plan, the best battery products will be used in new energy vehicles in the future. After these products are phased out, they will be used in the clean power sector as energy storage batteries, and then in home energy storage. Mengshi Technology combines power lithium battery production with applications in the energy storage field, ultimately forming a complete battery tiered utilization system. Through this tiered utilization approach, the value of batteries is maximized.
Battery China Network (WeChat ID: cbea_battery) believes that the cascade utilization and recycling of power lithium batteries is an unavoidable issue and also an area with enormous economic potential. The various forms of operation launched by battery companies, automakers, and recycling companies through different degrees of collaboration are all beneficial attempts for power lithium battery recycling. In short, how to maximize the residual value of power lithium batteries, create the greatest value, minimize dismantling costs, and minimize environmental harm will all be the directions that companies strive for.
