Recently, the Energy Conservation and Comprehensive Utilization Department of the Ministry of Industry and Information Technology organized a seminar on management methods for power Battery recycling recovery and utilization to strengthen the management of power Battery recycling recovery and utilization. Industry insiders said that the power Battery recycling industry has entered the fast lane of development under the combined effect of the gradual increase in the penetration rate of new energy vehicles, the increasing environmental protection requirements, and the increasing number of retired power batteries. Power Battery recycling has high economic value and environmental protection value, which is conducive to the sustainable and healthy development of the new energy vehicle industry. Relevant enterprises should seize the opportunity, enhance their comprehensive strength, and seize this high-quality track.

Improve policy system

In recent years, the Ministry of Industry and Information Technology, together with relevant departments, has issued and implemented the Interim Measures for the Management of the Recycling of New Energy Vehicle Power Batteries, the Administrative Measures for the Cascade Utilization of New Energy Vehicle Power Batteries and other policies, strengthened the traceability monitoring of power batteries throughout their life cycle, organized the pilot project of new energy vehicle power Battery recycling recycling, and explored diversified recycling modes.

With the rapid development of new energy vehicle industry and the approaching "retirement tide" of power battery, it is urgent to further standardize the development of power Battery recycling recycling industry.

On May 30, the website of the Ministry of Industry and Information Technology of the People's Republic of China (MIIT) revealed that relevant personnel from some provincial and municipal competent departments of industry and information technology and research institutions attended the seminar on management measures for Battery recycling of new energy vehicle power. At the meeting, various regions introduced the development and problems of power Battery recycling recycling management. The participants discussed the management scope, executive body, applicable laws and regulations of the method, and deeply studied the weak links in the management of power Battery recycling recycling and utilization, as well as the working ideas for strengthening management.

In the next step, the Energy Conservation and Comprehensive Utilization Department of the Ministry of Industry and Information Technology will accelerate the research and formulation of management measures for the recovery and utilization of power batteries for new energy vehicles, strengthen industry standard management, and continue to improve the power Battery recycling recovery and utilization system.

In recent years, upstream and downstream enterprises in the industrial chain have competed in the field of power Battery recycling, but the overall competition pattern is "small, scattered, and chaotic". The development of key technologies of power Battery recycling is relatively lagging behind, and the standard system of power Battery recycling recycling needs to be improved.

Experts suggest that we should speed up the improvement of laws and regulations on power Battery recycling recycling, enhance the innovation and research and development capability of key core technologies, and optimize the layout of recycling industry according to local conditions.

Broad market prospects

According to relevant professionals, under normal circumstances, when the remaining capacity of new energy vehicle power batteries decreases to 70% to 80% of the initial capacity, it cannot meet the requirements for on-board use. If the power battery is disposed of improperly after retirement, it will affect the environment and bring safety hazards, while also causing serious resource waste.

It is worth mentioning that China's production and sales of new energy vehicles have remained the world's top for many consecutive years. According to the 4-8 year service life estimation of power batteries, the power batteries of Alternative fuel vehicle installed on a large scale around 2017 will usher in a recycling period this year. In particular, with the large-scale expansion of power battery installation, the contradiction between supply and demand of lithium resources will further intensify, and the market value of power Battery recycling will become prominent.

At the press conference of the 2023 World Power Battery Conference held on May 24, Miao Changxing, the first level inspector of the First Equipment Industry Division of the Ministry of Industry and Information Technology, said that China has built the world's most complete large industrial chain integrating upstream, midstream, downstream and post market. The post industrial chain system of power Battery recycling recycling, cascade utilization, material recycling and other post industrial chain systems continues to extend, and more than 14000 power Battery recycling recycling service outlets have been built in total, Basically achieve nearby recycling.

Power Battery recycling has a broad market. The White Paper on China's Waste Lithium Ion Battery recycling Recycling, Disassembly and Echelon Utilization Industry Development (2023) released by EVTank, a research institution, and Ivey Economic Research Institute, shows that in 2022, China's actual recovery of waste lithium ion batteries will be 415000 tons, an increase of 75.8% year on year.

Against the background of a sharp rise in the price of raw materials, in 2022, the price and quantity of waste lithium ion Battery recycling will rise at the same time, and the market size will grow to 15.44 billion yuan, with a year-on-year growth rate of 182.8%. The above white paper predicts that by 2030, the market size of the entire industry will exceed 100 billion yuan, reaching 105.36 billion yuan.

Accelerate the layout of enterprises

Great Wall Guorui Securities believes that in the near future, with the rebound of lithium carbonate prices, the economic benefits of the power battery recycling industry will be effectively improved, and the power battery recycling industry in its early stages of development may face development opportunities.

Industry insiders said that with the continuous expansion of the power Battery recycling market, the industry access threshold needs to be improved. In particular, after the introduction of the new energy vehicle traction battery recycling management measures, the development of the power Battery recycling recycling industry will be further standardized, and a number of non-standard small workshops will be eliminated, while supporting the rapid development of relevant recycling enterprises with technical strength and strong competitiveness.

With good policies and market opportunities, more and more enterprises are joining in to share the dividends of power Battery recycling industry.

Long term Logistics recently announced that the company plans to acquire 51% equity of Guangdong Didu New Energy Co., Ltd. through equity transfer and capital increase, with a total amount of 126 million yuan. It is reported that the target company is the third batch of white listed enterprises of the Ministry of Industry and Information Technology in the industry specification of waste power lithium Battery recycling.

Long term Logistics stated that the target company has deep advantages in resources, technology, and channels in the field of electric energy storage, and can form good synergies with the company in the future. This will help the company improve the layout of retired power Battery recycling, positive and reverse logistics, echelon utilization, and echelon product sales, and create an ecological closed-loop for the comprehensive utilization of retired power Battery recycling.

Tianqi Co., Ltd. recently signed a strategic cooperation framework agreement with Hubei Ecological and Environmental Protection Co., Ltd. According to the agreement, both parties will establish a joint venture to jointly build a comprehensive utilization project of lithium Battery recycling recycling; Promote resource integration and sharing, and jointly build a lithium Battery recycling ecosystem. Tianqi Shares said that this cooperation is conducive to the continuous and rapid development of the company's lithium battery recycling sector, further deepening the breadth and depth of the company's layout of the lithium battery recycling industry, enhancing the company's differentiated competitive advantage, and jointly building a closed-loop of the lithium Battery recycling recycling industry.

The person in charge of Greenway stated at the company's 2022 performance briefing that the company has accumulated over 20 years of experience in scrapping power batteries, electronic waste, and rare metal extraction. The company will adhere to the driving model of "new energy material manufacturing+urban mining". In 2022, the company's urban mining business achieved a revenue of 7.595 billion yuan, a year-on-year increase of 36.32%. Looking ahead, with the development of new energy industry and the increase of 3C electronic product consumption, the demand for Battery recycling will be further released.

Translated from: China Securities News · China Securities Network