In recent years, China’s electric vehicle (EV) market has surged, with government incentives playing a pivotal role in transforming consumer perception of EVs from novelty to necessity. Wang Lei, an early EV adopter from Beijing, decided to sell his compact electric car after experiencing a significant decline in battery performance. Faced with the expiration of his warranty and the high cost of a replacement battery, he opted for selling. With the help of local battery recyclers found through Douyin, he received a competitive offer, reflecting a growing trend among first-generation EV owners as their vehicles reach the end of battery life.
As EV sales soar—nearly 50% of new cars sold in China being electric or plug-in hybrids by late 2022—the challenge of managing aging batteries is intensifying. The country’s battery recycling sector is under significant strain as it grapples with a flood of retired batteries. Estimates indicate that total retired EV batteries in China could reach 100,000 tons annually, with projections suggesting this could escalate to 2 million tons in the coming years. While the formal recycling industry is expanding, with over 1,000 businesses registered in recent months, illegal operations are proliferating, often compromising safety and environmental standards.
Battery recycling typically involves two main processes: cascade utilization, where batteries are repurposed for less demanding applications, and complete recycling, where battery cells are dismantled to recover valuable metals. However, these operations require substantial investment, which smaller, unregulated recyclers often bypass to offer higher payouts to consumers. This has led to hazardous practices that can result in environmental contamination and safety risks. As a response, the Chinese government has been promoting certified recycling facilities, yet formal recycling rates remain significantly low. Major players in the EV market, such as BYD and CATL, are stepping up to integrate recycling solutions into their operations, aiming to create a more sustainable ecosystem for battery management as the nation continues to lead in global EV production.
Source: China figured out how to sell EVs. Now it has to bury their batteries. via MIT Technology Review