Unlocking the Full Potential of Retired EV Batteries

31 Jul.,2025

As China’s new energy vehicle (NEV) market continues to grow, the country is seeing a surge in retired power batteries. Estimates suggest that 820,000 tons of batteries will be decommissioned this year, with annual retirements exceeding 4 million tons by 2028. By 2030, the battery recycling market could surpass 100 billion yuan.

 

Source: People's Daily

As China’s new energy vehicle (NEV) market continues to grow, the country is seeing a surge in retired power batteries. Estimates suggest that 820,000 tons of batteries will be decommissioned this year, with annual retirements exceeding 4 million tons by 2028. By 2030, the battery recycling market could surpass 100 billion yuan.

These retired batteries contain both valuable metals and hazardous substances, making efficient recycling essential—not only to reduce environmental risks but also to secure critical resources and strengthen the NEV supply chain.

Tightening Regulations to Curb Informal Recycling

Despite the growing volume of retired batteries, China’s recycling industry remains loosely regulated. One key issue is low market entry barriers, which allow unqualified small-scale operators to purchase used batteries and process them outside formal channels, driving out more responsible recyclers. Another challenge is traceability—batteries enter circulation from a wide range of sources, including 4S dealerships, second-hand car markets, and repair shops, making it difficult to track and regulate their disposal. According to a 2023 report, the standardized recycling rate for NEV power batteries in China is less than 25%.

To address this, some companies have introduced “digital ID” systems, using QR codes and other tracking technologies to create detailed records for each battery. This approach enables full traceability from production to recycling and should be widely adopted. Meanwhile, stricter enforcement is needed to crack down on unauthorized recycling operations and ensure compliance with environmental and safety standards.

Advancing Recycling Standards and Automation

The recycling and repurposing of retired batteries present significant opportunities, but technical barriers remain. One major challenge is the lack of standardization. A single battery pack contains hundreds of screws and numerous electronic components, with variations in design and materials across manufacturers. This makes automated dismantling difficult, limiting the scalability and efficiency of recycling operations.

To overcome these obstacles, the industry needs a unified standardization framework that incorporates recyclability into battery design from the outset. Establishing a standardized system covering the entire battery lifecycle would simplify dismantling and improve recycling efficiency. At the same time, greater investment in technology is needed to enhance the precision and effectiveness of battery reuse. Some companies are already making strides in this area. For example, GEM Co., Ltd. has developed an intelligent dismantling system where AI-powered robots, trained through image recognition and big data, can autonomously disassemble battery packs of different models and specifications.

With smarter, more efficient recycling technologies, the hidden value of retired EV batteries can be fully realized, contributing to both environmental sustainability and resource security.

 

 

 


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