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Images of vast tracts of land taken over by abandoned electric vehicles have spread across social media, drawing attention to the result of excessive subsidies, manufacturer bankruptcies and insufficient charging infrastructure.
Abandoned electric cars in China: China, the world’s largest electric vehicle market, is now facing an unexpected scenario: the emergence of veritable “electric car cemeteries”. Images showing thousands of vehicles parked on vacant lots or in agricultural fields, without use or maintenance, have been circulating on social media and impacting public opinion. The scene contrasts with the futuristic image associated with China’s energy transition and raises questions about the side effects of the rapid electrification of the automotive fleet.
The so-called “electric car cemeteries” are not isolated cases. Reports and photographic records have emerged in cities such as Hangzhou, Nanning and Chengdu. In many of these locations, abandoned vehicles still have stickers from ride-sharing or ride-hailing services, revealing their origins in the urban mobility market.
Startup boom and subsidies fueled manufacturing bubble
The origins of the problem date back to the beginning of the last decade, when the Chinese government promoted aggressive subsidies to stimulate the production and adoption of electric vehicles. In parallel, hundreds of startups emerged with the promise of revolutionizing the automotive sector with their own models of urban electric cars.
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With state support and easy credit, companies like Xpeng, WM Motor, Bordrin and other lesser-known companies have produced entire fleets focused on rental, urban transportation and ride-sharing. However, many of these companies did not survive the market challenges, such as fierce competition from established brands, high maintenance costs and the lack of robust charging infrastructure in smaller cities.
When subsidies began to be cut around 2020, the landscape changed: hundreds of thousands of vehicles were left unused, and investors abandoned the projects. With no buyers, active fleets or plans for recycling at scale, the vehicles were piled up or left on idle land.
Abandoned electric cars reveal structural flaws
China’s “electric car graveyards” reveal not only the collapse of poorly planned startups, but also structural flaws in the automotive sector’s energy transition. The lack of clear policies for battery disposal and recycling, for example, makes the problem worse.
Experts point out that, contrary to combustion cars, electric vehicles have components that require specialized reverse logistics, especially lithium-ion batteries. Incorrect disposal of these materials can generate significant environmental impacts, such as soil contamination and fire risks.
Furthermore, the reuse or repurposing of batteries still faces technological and regulatory barriers, which turns thousands of vehicles into environmental and logistical liabilities.
Domino effect: what led to the collapse of part of the sector
The abandoned vehicle crisis stems from three main factors, according to experts from Tsinghua University and the China Automotive Technology and Research Center:
- Production greater than real demand: overconfidence in the growth of electric mobility led to the production of volumes above the market's absorption capacity.
- Fragile business models: many startups focused exclusively on rentals and app services, which lost strength over time, especially after the pandemic.
- Lack of infrastructure and maintenance: in smaller cities, where part of the fleet was relocated, there is a lack of charging points and specialized workshops, which made the operation of these cars unfeasible.
Geopolitical and environmental impact of rare earths and batteries
Another factor that makes the problem delicate is the environmental and geopolitical issue. Mass production of electric cars requires large volumes of lithium, nickel, cobalt and rare Lands — strategic elements in the global dispute for green technologies.
With so many electric cars no longer in use, some of these precious materials are technically “stranded” without proper disposal. Countries such as the United States and members of the European Union are closely monitoring what is happening in China, as the incorrect management of this waste could undermine the ecological argument of automotive electrification.
Possible solutions and new regulatory cycle
The Chinese government has already initiated a new phase of regulations aimed at mandatory recycling of end-of-life electric vehicles, including incentives for companies that can recover and reuse batteries.
In addition, major automakers such as BYD, Nio and Geely are already adopting circular economy policies, with reconditioning and material reuse centers. The expectation is that the next generation of Chinese electric vehicles will be more durable, standardized and compatible with national recycling and maintenance networks.
More than a portrait of waste, the “electric car cemeteries” expose the challenges of an accelerated technological transition without complete planning. They show that, in addition to innovation, electric mobility requires infrastructure, long-term industrial policy, environmental regulation and sustainable business models.
China, a pioneer in this transformation, is now also a laboratory of mistakes and successes that can guide other countries in their quest to decarbonize their fleets.
