Analysis of the current status of domestic lithium battery recycling market

With the continuous growth of new energy vehicles, it has brought about a huge demand for power lithium batteries, and also an industry opportunity for lithium battery recycling and ladder utilization. The development of lithium battery recycling and ladder utilization is to avoid waste of environmental pollution. It will also generate considerable economic benefits and investment opportunities. 50 pure electric buses were invested by Beijing during the 2008 Olympic Games.

1. Lithium battery scale and waste recycling demand

The new energy automobile market began to grow at a high speed in 2014, and new energy vehicles have appeared in the 2008 Olympic Games. According to the corresponding scrapping standards, the battery scrap battery market has begun to form. It is expected that China’s power battery waste recycling market will be 2018. At the beginning of the scale, the accumulated waste power battery is 12.08GWH, and the accumulated scrap will reach about 172,500 tons. According to estimates, the recovery market for recycling metals such as cobalt, nickel, manganese, lithium, iron and aluminum from waste lithium batteries in 2018 will reach 5.323 billion Yuan, reaching 10.1 billion Yuan in 2020, and the waste power in 2023. The lithium battery market will reach 25 billion Yuan.

A text to understand the domestic lithium battery recycling market

2. Power lithium battery recycling treatment

There are two main paths for power battery recycling. One is for batteries that are not scrapped, but the capacity cannot be used by electric vehicles. That is, the use of used batteries is to unpack the battery packs, test and filter the modules, and then assemble them. It is used in areas such as energy storage; the second is the dismantling, recycling and reuse of power batteries that have been scrapped. This is the current focus of power battery recycling.

At present, the disposal method of power battery is mainly based on dismantling and recycling. However, the scale of recycling enterprises is generally small, the level of technology is not perfect, and some enterprises that do not have the qualification for recycling are illegally engaged in the recycling of used power batteries. Ladder utilization is theoretically a very good solution, but it is difficult to implement for current power batteries. Mainly because of the large number of domestic power battery models, the battery pack structure is not uniform, the assembly process and technology vary widely, but the technical requirements in the unpacking process are very high, and the technology and cost of the production line are very high. In addition, the quality of domestic batteries is mixed, and many batteries may be nearly scrapped in actual operation for 3-4 years on electric vehicles.

3. Power lithium battery recycling body

The current recycling mains of power batteries mainly include recycling small workshops, professional recycling companies and government recycling centers. The recycling system based on power battery manufacturers or electric vehicle companies has not yet appeared.

At present, the recycling channels of power batteries are mainly based on small recycling workshops. There are fewer professional recycling companies and government recycling centers, and the system needs to be reorganized. Most of the used power batteries have flowed into the lack of qualified refurbished small workshops, which are backward in process equipment. However, if it is handed over to a formal enterprise that is legally registered to pay taxes, obtaining qualifications and discharging according to national standards will inevitably result in a lack of competitiveness in price. Therefore, it is necessary to improve the policy to ensure the sustainable development of the battery recycling industry.

The professional recycling company is a professional enterprise approved by the state to recycle and dispose of used power batteries. With comprehensive strength, advanced technology and equipment, and standardized technology, it can not only maximize the recovery of available resources, but also reduce environmental pollution. At present, the companies that carry out power battery recycling mainly include Shenzhen GEM, Bangpu Cycle Technology, Ganfeng Lithium Industry and Chaowei Group. Although there are more and more companies in the layout of lithium battery recycling, there is a lack of government system support and policy incentives.

The establishment of recycling centers by local governments at all levels will be conducive to scientific and standardized management of the battery recycling market, improvement of recycling networks, rational distribution of recycling networks and recycling markets, and increase the recovery of formal channels. However, at present, China does not have a government recycling center for power batteries, but in the future it can choose to develop according to the reality of China.

4. Discussion on recycling business model

Recycling mode based on battery manufacturers

In this mode, the power battery manufacturer uses the sales network of the electric vehicle to rebuild and recycle the used batteries in a reverse logistics manner. Electric vehicle manufacturers must cooperate with the recycling of power battery companies. Consumers return the scrapped batteries to nearby electric vehicle sales and service outlets, and electric vehicle manufacturers transfer them to battery manufacturers at agreed prices. In addition, scrapped car dismantling companies also need to sell dismantled used power batteries directly to power battery manufacturers when recycling used electric vehicles. In the form of recycling, it is necessary to use the "old-for-new" approach to encourage consumers to take the initiative to surrender the used batteries.

Industry alliance recycling model

This model is mainly composed of power battery manufacturers, electric vehicle manufacturers or battery rental companies in the industry, and jointly set up a special recycling organization to be responsible for the recovery of power batteries. The main feature of this model is the establishment of a unified recycling organization within the industry, with strong influence and wide coverage, making it easy for consumers to return batteries. The proceeds from recycling are used to build and operate the recycling network.

Third party recycling model

This model needs to build a recycling network and related logistics system on its own to recover the used power batteries of the after-sales market, and then return them to the recycling process for special treatment. In addition, auto dismantling companies can also sell used power batteries directly to third-party companies. However, the establishment of this model requires a large investment in equipment, network and manpower, and the cost is high.

Compared with the three models, the industry alliance recycling cost-effectiveness is the best, but it needs to be established by various enterprises in the industry. At present, the operability of the power battery policy and regulations is not clear and perfect. Taken together, the recycling model dominated by power battery manufacturers is low cost and easy to implement.

5. Foreign battery recycling system

Germany: the government legislates recycling, and the producers bear the main responsibility. A fund is set up to improve the recycling system. The German battery recycling regulations are mainly based on the EU Waste Framework Directive and the Battery Recycling Directive. Recycling regulations require battery manufacturers, distributors, recyclers, and consumers to have corresponding recycling responsibilities and obligations. The battery manufacturer bears the main responsibility for recycling. The seller must cooperate with the battery manufacturer's recycling work, and consumers should return the batteries to the appropriate recycling system.

Japan: Manufacturers lead battery recycling and directly enter the “recycling” model, and various companies are widely involved in battery recycling. At present, Japan has initially established a battery recycling system for “battery production, sales, recycling, and recycling”. At the same time, the Japanese people spontaneously set up many civil organizations to participate in all aspects of recycling of used battery products. Since 2000, the Japanese government has stipulated that manufacturers should be responsible for the recovery of lithium batteries, and give resources to the design of product-oriented products; after the batteries are recycled, they are transported back to the battery manufacturers for treatment, and the government provides corresponding subsidies. In addition, many Japanese companies are also involved in the battery recycling system. In addition to electric vehicles and specialized recycling companies, major Japanese communication companies have jointly established a lithium battery independent recycling promotion association, stating that it is responsible for the recycling of lithium batteries. Work to strive to significantly increase the recovery rate of lithium batteries.

The United States: The market is mainly regulated, and the government manages from the perspective of environmental protection to assist in the recycling of used power batteries. The government adopts an additional environmental fee. When the consumer purchases the battery, it charges a certain amount of handling fee and the battery manufacturer pays a part of the fee, which is supported by the scrapped product recycling. At the same time, the used battery recycling enterprise sells the purified raw materials at the agreed price for battery manufacturers. In the US market, the United States rechargeable battery recycling company (RBRC) and the United States Portable Rechargeable Association (PRBA) two organizations to promote and guide the public to cooperate with the recycling of used batteries to protect the natural environment. RBRC is a non-profit public service organization that promotes the recycling of rechargeable batteries. PRBA is a non-profit battery association composed of battery companies. It mainly develops recycling plans and measures to realize the recycling of industrial batteries. Among them, RBRC provides three schemes to collect, transport and reuse used rechargeable batteries: retail recycling scheme, community recycling scheme and corporate and public sector recycling scheme.

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