The scrapped batteries of “Tesla” have contributed to the recycling business of 100 billion

Since China gradually promoted new energy vehicles in 2013, batteries have become an indispensable part of the production process of new energy vehicles. Generally speaking, the power battery of a car generally has a service cycle of 5-8 years (5 years for passenger cars and 8 years for compulsory retirement of buses). When the battery capacity decays to 60% – 80%, it needs to enter the ranks of retirement.
According to data, 2020-2021 is exactly the retirement year for the first batch of new energy vehicle batteries. According to data from the China Automotive Technology and Research Center, the cumulative decommissioning of power batteries in China in 2020 is about 200,000 tons (about 25GWh). .
Of course, although the road has not yet come, many difficulties are already ahead.

Recycling is the fate of power batteries

Lithium-ion batteries are generally considered more environmentally friendly than lead-acid batteries that contain heavy metal contamination.
But the coin always has two sides.
“In the production process, new energy vehicles not only have no carbon emission reduction advantages over fuel vehicles, but even generate more carbon emissions due to power batteries. In addition, improper disposal of scrapped batteries will also cause serious environmental hazards and safety. Hidden danger.”

The power battery contains elements such as lithium iron phosphate, lithium manganate, lithium cobaltate, nickel cobalt manganese (ternary). If the waste batteries are landfilled, incinerated, composted, etc., the metal elements and compounds in them will cause serious pollution to the atmosphere, water and soil.
Therefore, it can be expected that under the background of carbon neutralization, recycling and regeneration is the fate of used batteries.

On October 24, 2021, the State Council of China issued the “Carbon Peaking Action Plan before 2030”, proposing “Ten Actions for Carbon Peaking”, among which the circular economy to help reduce carbon emissions clearly requires the promotion of retired power batteries, photovoltaic modules, wind turbines Leaf and other emerging industries waste recycling.
China has also issued a series of policies to implement the “Interim Measures for the Administration of Recycling and Utilization of New Energy Vehicle Power Batteries” and “Administrative Measures for the Echelon Utilization of New Energy Vehicle Power Batteries”.
At present, the first batch of new energy vehicle power batteries have entered the scrapping stage, and a larger wave of battery retirements is already on the way. In 2021, the sales of new energy vehicles in China will reach 3.521 million, and the batteries of these vehicles will be retired in 5-8 years.
Experts pointed out that in 2030, the recycling of ternary and lithium iron phosphate batteries will become a market of 100 billion yuan. Among them, the total recycling space of ternary battery metals will reach 10 billion US dollars at an average price, and the secondary utilization and recycling market space of lithium iron phosphate batteries is expected to exceed 4 billion US dollars.
What’s more, the upstream resources of power batteries are currently in short supply. Many people in the industry also said that although the recycled lithium resources only account for about 5% of the market, it is far from enough to fill the market gap.
“In the short term, although the ability to alleviate resource shortages is limited. But in the long run, with the arrival of the tide of power battery retirement, the amount of recycled resources will continue to rise; when the new energy market matures and the growth rate decreases after many years, The proportion of recycled resources will also start to rise.”
At present, the recycling and utilization of power batteries mainly include two ways: cascade utilization and recycling.
Generally speaking, with the increase of charging times, when the power battery attenuation is greater than 20%, the battery can no longer meet the needs of the vehicle. The cascade utilization is mainly to use batteries with higher residual capacity for energy storage, low-speed electric vehicles with low mileage requirements, etc., and downgrade use;
Recycling is to recover lithium, cobalt, nickel and other metal elements by fire method (calcination after crushing) and wet method (immersion extraction), and become the raw materials for battery manufacturing.
According to industry insiders, due to the different metal elements contained in the power battery, the ternary battery contains more metal elements, which are generally directly recycled. The lithium iron phosphate battery is prioritized for cascade utilization, followed by regeneration and recycling.
At present, the extraction rate of nickel, cobalt and other metals in ternary batteries in the industry can reach 98%, and the recovery rate of lithium carbonate can reach 90%.

Multi-player first layout

At present, there are four main types of companies doing battery recycling in China, covering the upstream and downstream of the battery industry:
First, battery material manufacturers, such as ternary material factory Huayou Cobalt, GEM, Ganfeng Lithium, etc., have mines in the upstream and production in the downstream, so it is not difficult to start battery recycling.
GEM has signed vehicle battery recycling and disposal agreements with more than 280 car companies and battery companies, and has an annual recycling capacity of 130,000 tons, ranking the forefront of the industry. Ganfeng Lithium also established Ganfeng Cycle in 2016 to start recycling waste batteries and materials.
The second is battery manufacturing companies. For example, CATL completed the acquisition of “Bangpu Cycle” in 2013. At present, the lithium battery recycling business sector has become one of the three core businesses; it has cooperated with Yutong, SAIC, BAIC, Geely and other car companies for recycling. Used power batteries are transformed for energy storage.
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China Tower Recycles Power Lithium Batteries for Echelon Utilization

The third is car manufacturers, such as BYD’s Fudi battery, which produces echelon battery products that will be supplied to China Tower, a battery-using enterprise. An employee of Fudi Battery told 36 Carbon: At present, BYD’s echelon battery production capacity is about 1.5GWh per year, and it is also planning a waste battery recycling project with a target production capacity of at least 10,000 tons.
The fourth is a third-party environmental protection company specializing in battery recycling, such as Shunhua Lithium and Bocui Cycle mentioned above.
In some European and American countries, the main body of battery recycling is more clear and fixed. For example, the recycling of used batteries in the United States will be dominated by authoritative third-party battery recycling organizations, while in Europe, battery recycling is legally recognized as belonging to battery manufacturers and car companies. The extended responsibility of Japan is to encourage car companies to invest in battery recycling.
In contrast, the main body of battery recycling in China is more diversified. “In the future, a linkage and closed-loop B2B model of battery manufacturers, car companies, and recycling companies may be formed, and third-party recycling companies will become the social responsibility sharers of car companies and battery manufacturers. It is expected that a virtuous circle will be formed around 2030.”.
Although the current industry has not really exploded, it should be recognized that, as an important part of the automotive industry, battery recycling requires the participation and cooperation of upstream and downstream industries to avoid environmental pollution to the greatest extent and achieve resource recovery. After all, what we do with the battery’s past is what we do with our future.