Lithium battery recycling has broad prospects and high market concentration

Lithium battery recycling refers to the centralized recycling of scrapped lithium batteries, recycling of used lithium batteries through physical, chemical and other recycling processes, or extracting valuable metal elements such as lithium, cobalt, nickel, etc. in the batteries for multiple purposes. Reasonable utilization of layers and multi-purposes.

The two main ways of recycling lithium batteries are echelon utilization and disassembly recycling. Lithium iron phosphate batteries are more suitable for echelon utilization due to their low material cost, good stability and long cycle life. Due to its high material cost, poor stability and short cycle life, ternary batteries are more suitable for direct disassembly and recycling.

Nickel, cobalt, manganese, lithium and other elements in lithium batteries can be recycled and have high economic benefits. In the context of the increasing scarcity of nickel, cobalt and other resources, the importance of lithium battery recycling has become increasingly prominent. With the rapid development of my country’s new energy industry, the number of used lithium batteries in my country will continue to increase in the future. It is expected that the domestic recycling volume of used lithium batteries will reach 1.168 million tons in 2028.

In recent years, with the development of China’s new energy vehicles, energy storage and other industries, lithium battery shipments have continued to increase. Limited by the battery life cycle, the theoretical recycling volume of lithium-ion batteries has also increased year by year, thereby promoting the size of the lithium battery recycling market increase. According to the “2023-2027 Lithium Battery Recycling Industry In-depth Market Research and Investment Strategy Suggestions Report released by the Industrial Research Center, In 2022, the market size of China’s lithium battery recycling industry will be close to 25 billion yuan.

After development in recent years, there are currently hundreds of domestic lithium battery recycling companies, but Guangdong Bangpu Recycling Technology Co., Ltd., GEM Co., Ltd., Guangdong Guanghua Technology Co., Ltd., Zhejiang Huayou Cobalt Co., Ltd., Companies such as Guangdong Fangyuan New Materials Group Co., Ltd. have occupied a high market share in the market by virtue of their advantages in technology and channels. In addition, there are many small lithium battery recycling companies in China, but they are small in scale and have limited market share.

Industry analysts said that my country has not yet formulated mandatory regulatory measures for lithium battery recycling, coupled with incomplete recycling channels and incomplete recycling systems , a large number of scrapped lithium batteries are recycled and disposed by individuals or unqualified companies, causing resource waste and environmental pollution. Although the Ministry of Industry and Information Technology has promulgated documents such as the “Industry Specification Conditions for Comprehensive Utilization of Wasted Power Batteries of New Energy Vehicles”, the documents have only been issued for a short period of time and the overall effect has not yet appeared.