The first wave of battery recycling market has reached its peak

In recent years, my country's new energy vehicle production and sales have continued to rise at a high speed for many years, ranking first in the world. Subsequently, the problem of power lithium battery recycling has become increasingly prominent. According to the calculation of the service life of 5-8 years of vehicle power lithium batteries, the batteries that were put into production in 2014 and 2015 will enter the mass obsolescence period in 2020. Data show that in 2019, the global power lithium battery is recycled about 120,000 tons, and the market size is about 10.5 billion yuan. The industry estimates that my country’s power lithium battery recycling volume will reach 26.69GWh (about 200,000 tons) in 2020, corresponding to a significant increase of 137% in the market to 17.5 billion yuan. This is the first wave of power lithium battery recycling peak; by 2025 There are about 110GWh (about 800,000 tons) of power lithium batteries to be recycled, corresponding to a market size of more than 70 billion yuan. From a longer time and from a global perspective, the International Energy Agency predicts that the global lithium-ion battery recycling market will rise to 20 billion euros (about 164.8 billion yuan) around 2030. This is a huge cake. If the policy is not to recycle used lithium batteries, the potential harm to people and the environment is obvious. Reasonable recycling can not only avoid hazards, but also improve the recycling of battery raw materials. The policy has given sufficient attention to this aspect. On August 5th, in order to regulate the recycling and dismantling of scrapped motor vehicles and strengthen the management of recycling and dismantling of scrapped motor vehicles, seven departments including the Ministry of Commerce, Development and Reform Commission, and the Ministry of Industry and Information Technology jointly announced the Implementation Rules for the Management Measures for the Recycling of Scrapped Motor Vehicles (hereinafter referred to as the 'Detailed Rules') ). The 'Detailed Rules' clearly stipulate the qualifications and management, recycling and dismantling behavior specifications, recycling behavior specifications, supervision and management, legal responsibilities, etc., and will be implemented from September 1, 2020. Since September 1st, more than the 'Detailed Rules' have been implemented. As early as April 29, the 17th meeting of the Standing Committee of the 13th National People’s Congress passed the revised 'Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste' (referred to as the 'Solid Waste Law'), which will also be held this year. Officially implemented on September 1. The new 'Solid Waste Law' stipulates: 1. Strengthen the responsibility system of the presenter, big battery brands and large agents will involve the recycling of waste batteries; 2. The threshold for recycling will be greatly increased, and a formal license recognized by the state is required; 3. Accumulative illegal recycling And illegal disposal of hazardous waste exceeding 3 tons, if there is no recycling qualification certificate but hoarding a large amount of used batteries will violate the criminal law. In other words, the new 'Solid Waste Law' on the one hand will severely crack down on non-compliant 'small workshop' battery recycling, on the other hand, it is good for standardized operations to be battery recycling companies. Driven by the policy, the company has initially formed a recycling system jointly built by vehicle manufacturers, battery companies, materials companies, and third-party recycling companies. Up to now, in terms of the total number of companies related to the recycling of power lithium batteries, the company's data shows that there are 208 companies, of which 41 were newly added in the first seven months of this year, and this year's new companies accounted for 19.71%. At present, the number of companies in my country whose business scope includes 'battery recycling' has reached 3,000. In recent years, the increment of related companies has increased year by year, and more than 700 new companies have been added in 2019 alone. In terms of specific companies, it is understood that a large number of power lithium batteries and related upstream and downstream companies such as CATL, BYD, GEM, Narada Power, Thornton New Energy, AVIC Lithium Battery, Guoxuan High-Tech, and Mengshi Technology are all in the field of battery recycling. For example, in an investor’s question on August 14 “Can the batteries of new energy vehicles be recycled?” Narada Power responded that the company’s subsidiary Huabo New Materials, Narada Huayu, and Central South University and other well-known domestic universities established technology joint development The group, with its own Ru0026D team, is engaged in the research and development and application of key technologies for lithium-ion battery recycling and reuse. As of the company’s 2019 annual report, the company’s first phase of 25,000 tons of waste lithium-ion battery recycling projects has received construction Permit, equipment bidding and bidding work is in progress. GEM has been deeply engaged in the field of resource recycling for many years. 'With the arrival of the peak period for the scrapping of power lithium batteries, the company's cobalt and nickel recovery is expected to continue to rise.' GEM believes. GEM stated that it has signed power lithium batteries with 223 well-known automakers and battery factories around the world around the 'battery recycling-raw material recycling-material recycling-battery pack recycling-new energy vehicle service' new energy full life cycle value chain. Recycling agreements and cooperation, including BYD Auto, BAIC, NIO, Jaguar Land Rover, Toyota Industrial Vehicles, Dongfeng Honda, CATL and many other new energy vehicle production companies and battery companies. GEM revealed that from April to May of this year, the number of recycled lithium battery packs for its power has exceeded that of the entire year of last year, and it is expected to double and increase throughout the year. Summary: In fact, the huge power lithium battery recycling market is not so much the peak of the first wave, as it is increasing. Because the market is getting bigger and bigger, and the unit of year will not be a low period in the next few decades. Companies that lay out the power lithium battery recycling market and have explored a profit model are bound to have a lot to do in the future!