The peak of power battery scrap is approaching peak waste battery recycling scale will exceed 10 billion

The challenges of illegal lead battery dismantling and improper disposal of battery solutions have made environmental protection a major concern. At the same time, formal recycling companies face issues such as low profitability, a limited market, and an inability to achieve economies of scale. These hurdles hinder the development of a sustainable and efficient recycling industry.

Reporters found that the power battery recycling sector, particularly for lead-acid batteries, is still in its early growth phase. While safe recycling methods are being developed, the peak period of battery waste—especially from electric vehicles—is approaching rapidly. This presents both opportunities and challenges for the industry.

The opportunity lies in companies that possess core technologies and can effectively recycle old power batteries. Such firms can not only prevent battery waste at the source but also capture a larger share of the recycling market. However, the challenge remains in curbing the illegal secondary battery recycling market. Additionally, learning from the successful practices of countries like Japan and Germany could provide valuable insights for China’s own recycling efforts.

The coming peak in battery scrap is inevitable. According to Yu Haijun, vice president of Guangdong Bangpu Circulation Technology Co., Ltd., while the market shows great potential, the long-term success of the industry depends on the company's technological foundation, business model, and overall strength.

For example, Guangdong Bangpu, which started in 2005, has grown from 20 to over 600 employees. It now processes more than 20,000 tons of used batteries annually and produces 10,000 tons of nickel-cobalt-manganese hydroxide. These numbers highlight the scale of operations in this emerging industry.

Looking ahead, the Chinese auto market is expected to see a significant shift toward electric vehicles, driving demand for power batteries. According to industry reports, new energy vehicle sales are projected to grow at a compound annual rate of over 30% in the next five years. This will create a massive increase in power battery demand and, eventually, a surge in battery waste.

As lithium-ion batteries replace lead-acid batteries in electric vehicles, the first batch of these batteries—introduced around 2013—will start reaching the end of their life cycle by 2018. This means the recycling focus will shift from lead to lithium batteries, increasing the volume of waste significantly.

By 2020, China is expected to have over 248,000 tons of power battery waste, a dramatic increase compared to 2016. Wang Binggang, head of the national new energy vehicle technology innovation engineering group, warned that if not handled properly, this could lead to a serious environmental disaster.

Recycling power batteries is not just about managing waste—it’s also about recovering critical metals like cobalt and nickel, which are heavily imported. Proper recycling can reduce dependency on foreign resources and support the long-term sustainability of electric vehicles.

With new energy vehicle sales reaching 507,000 units in 2016 and exceeding one million on the road, the number of discarded power batteries is set to rise sharply. By 2018, the amount of lithium batteries needing recycling is expected to exceed 170,000 tons, creating a recycling market worth over 5.3 billion yuan. By 2020, this market could surpass 10 billion yuan.

Companies like Guangdong Bangpu are already leading the way with a "directed circulation" model, where they collect and recycle batteries, then use the recovered materials to produce new ones. This closed-loop system helps reduce costs and supports sustainable growth.

The urgency to recover rare metals is growing, and government policies are starting to take shape. In October, officials from the National Development and Reform Commission visited Hunan to discuss power battery resource utilization, emphasizing the need for better recycling systems and stricter regulations.

Experts stress that the industry needs a comprehensive recycling framework, standardized systems, and strong research centers to ensure safe and effective battery recycling. Policies should also include mandatory producer responsibility, traceability systems, and stronger enforcement against illegal recyclers.

Japan has long been a leader in battery recycling, with a well-established system where consumers can return used batteries for free. Companies like Toyota and Honda have partnered with recycling firms to recover valuable materials from hybrid batteries, demonstrating how effective recycling can be.

While some companies rely on local subsidies, experts warn that long-term success depends on self-sufficiency rather than government handouts. The industry must also address the issue of illegal recycling, which is currently thriving due to weak enforcement and lack of oversight.

In conclusion, the power battery recycling industry is at a critical stage. With the right policies, technology, and collaboration, it can become a key part of the sustainable energy future. However, without proper regulation and infrastructure, the environmental risks could outweigh the benefits.

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