Once lithium iron phosphate (LFP) batteries reach the end of their lifespan, recycling becomes a major environmental challenge. Compared to ternary lithium-ion batteries, LFP batteries have a lower recycling rate, lack profitability, and often operate at a loss. Therefore, recycling LFP batteries not only fails to generate profits but also becomes a burden.
The challenge of recycling lithium iron phosphate (LFP) batteries is a significant issue in their secondary use. Electric vehicle lithium-ion battery manufacturers explain that my country issued new regulations on power lithium battery recycling in 2018, clearly defining the recycling entities and their responsibilities. Battery companies are actively researching greener and more economical recycling technologies. Only by addressing this shortcoming can LFP batteries achieve sustainable development. Otherwise, it will remain a major bottleneck and a significant weakness in the lithium-ion battery market.
Meanwhile, Wuxi Xingneng Lithium believes that the tiered utilization of lithium-ion batteries and the exploration of new markets have become top priorities for lithium-ion battery companies. Following the reduction of subsidies for lithium-ion batteries, their cost and utilization efficiency have become core issues of increasing concern in the market.
Following the reduction of subsidies for lithium-ion batteries, the cost and utilization efficiency of lithium-ion batteries have become core issues of increasing concern in the market. Lithium iron phosphate (LFP) batteries, if scrapped and dismantled, can only generate an economic benefit of approximately 9,300 yuan per ton, which is insufficient to cover their recycling costs. Therefore, LFP batteries are more suitable for secondary use. In terms of market size, the overall market size for the recycling, dismantling, and secondary use of power lithium batteries in my country will reach 6.68 billion yuan by 2020, and 13.1 billion yuan by 2022.
The potential for the secondary use of lithium iron phosphate batteries is enormous, while the dismantling technology for ternary lithium batteries is already relatively mature. The market potential for both is expected to increase rapidly as the volume of scrapped batteries rises. For lithium iron phosphate batteries, direct dismantling costs are high due to technological factors; therefore, prioritizing secondary use and effectively dismantling batteries to generate profits offers significant opportunities for companies.
Since retired batteries often retain a certain lifespan, if research on their cascade applications can be conducted to broaden their application areas, their service life can be effectively extended and the operating costs of the applications can be reduced.
