Background
October 15, 2025 – China’s battery recycling industry is experiencing explosive growth, driven by the surge in retired electric vehicle (EV) batteries and tightening environmental regulations. With the market expected to exceed ¥67.1 billion ($9.2 billion) in 2025, the sector is transitioning from a niche business to a critical link in the green energy supply chain.
Key Market Drivers
Retirement Wave of EV Batteries
Over 650,000 tons of used EV batteries are projected to enter the recycling stream in 2025, up from 300,000 tons in 2024.
Early-generation EVs (2015-2020) are now reaching their 5-8 year lifespan, creating a steady supply of recyclable materials.
Government Standards & Policies
China has introduced 22 national standards for battery recycling, covering collection, dismantling, and material recovery.
New regulations mandate traceability systems to prevent illegal disposal and ensure high recovery rates of lithium, cobalt, and nickel.
Economic & Environmental Benefits
Recycled materials now supply 15-20% of China’s battery production needs, reducing reliance on imported raw minerals.
Advanced hydrometallurgy and electrochemical recycling (pioneered by USTC) cut energy use by 40% versus traditional methods.
Industry Challenges
Fragmented Market: Over 1,000 small-scale recyclers operate with varying efficiency, raising concerns about safety and environmental compliance.
Technology Gaps: While CATL’s Brunp Recycling leads in capacity, many firms still rely on outdated, polluting methods.
Future Outlook
The market is projected to grow at 25% CAGR through 2030, with solid-state battery recycling emerging as the next frontier. Major players are investing in AI-powered sorting and closed-loop supply chains to secure dominance.
Closing Note: As China accelerates its "dual carbon" goals, battery recycling is no longer optional—it’s a strategic imperative. The next phase will hinge on tech innovation and industry consolidation.