Visitors learn about a 800V dual-motor drive system for the new energy vehicle (NEV) at an exhibition on the sidelines of the 2024 World Power Battery Conference in Yibin, southwest China's Sichuan Province, Sept. 1, 2024. (Xinhua/Tang Wenhao)
BEIJING, Feb. 25 (Xinhua) -- China's new energy vehicle (NEV) power battery recycling sector is projected to enter a period of rapid growth, as the Chinese government prioritizes power battery recycling in a national policy, the Xinhua-run Shanghai Securities News reported on Monday quoting industry insiders.
An action plan aimed at improving the recycling and utilization system of NEV power batteries was approved on February 21 during a State Council executive meeting, which pointed out that China's NEV power batteries have entered a mass retiring phase, and emphasized the need to enhance recycling and reuse capabilities.
The mass retiring phase refers to the 2025-2027 period. Given that the average operational lifespan of power batteries is five to eight years, the power batteries of approximately four million NEVs from 2018 to 2020 will need to be phased out during this time, said Zhao Xiaoyong, general manager of Beijing Saidemei Resources Recycling Research Institute Co. Ltd. He added that another major retirement peak is expected to occur between 2030-2032.
Automotive expert Sun Hengzheng stated that China's power battery recycling market will be a "blue ocean" in the next decade. It is conservatively estimated that the country's retired power batteries might have reached 20GWh in 2024. Based solely on a rough estimate of recyclable materials, these retired batteries' commercial value, namely the annual revenue generated for recyclers, was not less than three billion yuan.
Sun also projected that the annual demand for power batteries in China may surpass the one-TWh threshold before 2030, and the related power battery recycling sector is anticipated to embrace an era featuring a commercial value at billion-yuan level around 2038.
(Edited by Su Dan with Xinhua Silk Road, sudan@xinhua.org)
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