China's electric vehicle (EV) battery recycling industry is experiencing significant growth, driven by the increasing volume of used EV batteries. Data from the Qianzhan Industry Research Institute indicates that China's battery recycling market reached 558 billion CNY (approximately 78 billion USD). Additionally, recycled battery materials generated 647 billion CNY (approximately 90 billion USD), highlighting the industry's substantial scale within the EV supply chain.

This expanding industry operates primarily through two distinct recycling routes: cascade utilization and material recycling. Cascade utilization involves repurposing used batteries for secondary applications, extending their lifespan. Material recycling focuses on recovering valuable metals and other materials from spent batteries. These methods correspond to different stages of a battery's lifecycle and form part of an industrial chain that includes collection, processing, and material reuse.

Recycled battery materials generate approximately 90 billion USD. Photo: CarNewsChina

The battery recycling value chain involves upstream battery manufacturers and raw material suppliers, midstream recycling companies, and downstream material manufacturers. Key upstream participants include CATL, BYD, Shanxi Coking, and Yunnan Tin. Prominent recycling companies in the midstream sector are Huayou Cobalt, Ganfeng Lithium, New Energy Times, and Haopeng Technology. Downstream businesses concentrate on battery materials and powder metallurgy, with companies like Dangsheng Technology and Heyuan Fuma operating in this segment.

The sector's robust activity is supported by a substantial number of qualified companies and key industry players. As of 2024, China had 156 companies qualified for comprehensive recycling of used lithium-ion batteries, reporting a total nominal processing capacity of 423,3 million tons annually. In the lead-acid battery segment, 71 licensed enterprises reported an approved processing capacity of 1,47 billion tons per year. Based on reported capacity for 2024, Bangpu Recycling and CATL each accounted for approximately 6,4% of the total recognized lithium battery recycling capacity. GEM ranked second with about 5,9%, while Ganfeng Lithium and Xien Recycling each held around 4,7%. Regionally, battery recycling companies are concentrated in provinces such as Jiangxi, Guangdong, Zhejiang, and Anhui, where battery and material manufacturing industries are well-established.

To further bolster this nascent industry, the Chinese government is implementing comprehensive policy measures. In February 2025, China's State Council approved an action plan for a national EV battery recycling system. The plan outlines standardized collection, stricter monitoring, and improved traceability, while also addressing the reduction of informal and small-scale recycling operations.

Looking ahead, the market is poised for continued and substantial expansion. Qianzhan forecasts China's battery recycling market value to exceed 1.000 billion CNY (139 billion USD) by 2030. Over the same period, revenue from recycled battery materials is projected to surpass 2.000 billion CNY (278 billion USD). These figures indicate that the battery recycling industry will maintain a significant position in China's EV industry and raw material supply chain through the end of the decade.

My Anh (according to CarNewsChina)