New environmental regulations are driving industry upgrades! The used power battery recycling and parts industry is entering a period of explosive growth! With the rapid development of the new energy vehicle industry, the used power battery recycling and parts industry is poised for explosive growth. new environmental regulations has transformed this once marginal field into a key battleground for resource recycling and green transformation.
Under policy pressure, the industry is undergoing a qualitative transformation from ‘unregulated expansion’ to ‘standardised development.’ A large number of informal recycling workshops have entered the market at low costs, leading to uncontrolled flows of used batteries. Some are sent to small workshops for violent dismantling, causing heavy metal pollution; others are arbitrarily discarded, threatening soil and water safety.
The new regulations explicitly require the establishment of a full lifecycle traceability system covering battery production, sales, and recycling, and use a ‘whitelist’ system to screen compliant companies, eliminating illegal dismantling at the source. The establishment of cross-departmental joint law enforcement and a blacklist mechanism has further compressed the survival space for informal enterprises, driving the industry toward transparency and standardisation.
In traditional recycling processes, while hydrometallurgy can extract high-purity metals, the treatment costs for high-salt wastewater are exorbitant; pyrometallurgy consumes enormous amounts of energy and has insufficient lithium recovery rates. Currently, the industry is accelerating the exploration of innovative processes such as hydrometallurgy-pyrometallurgy hybrid systems and short-process deep lithium extraction, with some companies already achieving significant improvements in nickel and cobalt recovery rates.
To address the pain point of fragmented recycling channels, automakers, battery companies, and recyclers are building a closed-loop system of ‘production-use-recycling-regeneration.’ Through the ‘vehicle-battery separation’ model, batteries are managed uniformly, combined with a full lifecycle digital monitoring platform to accurately predict retirement timelines and reduce recycling costs.
Environmental regulations are driving upgrades! The used power battery recycling and parts industry is entering a boom period! In this transformation driven by new environmental regulations, the used power battery recycling and parts industry has transitioned from a ‘supporting role in pollution control’ to a ‘leading role in green transformation.’ With the deepening of technological iteration and supply chain integration, a market space worth hundreds of billions of yuan has been cultivated, providing a Chinese solution for global energy transition.
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