Background
As of October 15, 2025, China’s battery recycling sector is undergoing significant growth, fueled by a wave of retired electric vehicle (EV) batteries and stricter environmental policies. The market is projected to surpass ¥67.1 billion ($9.2 billion) this year, evolving from a niche industry into a vital component of the sustainable energy supply chain.
Key Growth Factors
Surge in Retired Batteries:
An estimated 650,000 tons of used EV batteries will enter recycling in 2025—more than double the 2024 volume.
Early EV models (2015–2020) are reaching their 5-8 year lifespan, generating a consistent flow of recyclable materials.
Regulatory Push:
China has implemented 22 national standards for battery recycling, covering collection, processing, and material recovery.
New rules require traceability systems to curb illegal disposal and boost recovery rates of lithium, cobalt, and nickel.
Economic & Environmental Impact
Recycled materials now meet 15–20% of China’s battery production demand, reducing dependence on imported minerals.
Innovations like hydrometallurgy (developed by USTC) lower energy consumption by 40% compared to conventional methods.
Challenges Ahead
Market Fragmentation: Over 1,000 small recyclers operate with inconsistent safety and environmental practices.
Technology Disparities: While leaders like CATL’s Brunp Recycling excel, many firms still use outdated, less eco-friendly techniques.
Future Trends
The industry is forecast to grow at a 25% annual rate until 2030, with solid-state battery recycling becoming the next focus. Major companies are investing in AI-driven sorting and closed-loop systems to gain a competitive edge.
Conclusion
With China’s "dual carbon" goals in motion, battery recycling has shifted from optional to strategically essential. Success will depend on technological advancements and industry consolidation in the coming years.
Background
As of October 15, 2025, China’s battery recycling sector is undergoing significant growth, fueled by a wave of retired electric vehicle (EV) batteries and stricter environmental policies. The market is projected to surpass ¥67.1 billion ($9.2 billion) this year, evolving from a niche industry into a vital component of the sustainable energy supply chain.
Key Growth Factors
Surge in Retired Batteries:
An estimated 650,000 tons of used EV batteries will enter recycling in 2025—more than double the 2024 volume.
Early EV models (2015–2020) are reaching their 5-8 year lifespan, generating a consistent flow of recyclable materials.
Regulatory Push:
China has implemented 22 national standards for battery recycling, covering collection, processing, and material recovery.
New rules require traceability systems to curb illegal disposal and boost recovery rates of lithium, cobalt, and nickel.
Economic & Environmental Impact
Recycled materials now meet 15–20% of China’s battery production demand, reducing dependence on imported minerals.
Innovations like hydrometallurgy (developed by USTC) lower energy consumption by 40% compared to conventional methods.
Challenges Ahead
Market Fragmentation: Over 1,000 small recyclers operate with inconsistent safety and environmental practices.
Technology Disparities: While leaders like CATL’s Brunp Recycling excel, many firms still use outdated, less eco-friendly techniques.
Future Trends
The industry is forecast to grow at a 25% annual rate until 2030, with solid-state battery recycling becoming the next focus. Major companies are investing in AI-driven sorting and closed-loop systems to gain a competitive edge.
Conclusion
With China’s "dual carbon" goals in motion, battery recycling has shifted from optional to strategically essential. Success will depend on technological advancements and industry consolidation in the coming years.
