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China Accelerates Battery Recycling, Reuses Lithium and Recycled Metals, and Reduces Dependence on Virgin Raw Materials.
Battery recycling in China entered a new phase of expansion in 2024, driven by the accelerated growth of electric vehicles in China, the tightening of environmental regulations, and the strategic need to strengthen the battery supply chain.
The movement involves automakers, battery manufacturers, recycling companies, and the Chinese government, transforming the reuse of used batteries into one of the most profitable segments of the electrified automotive industry.
Moreover, according to data from the Qianzhan Industry Research Institute, the market for used batteries for electric vehicles reached 558 billion yuan in 2024, approximately US$ 78 billion.
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The figure reflects the increase in the volume of batteries reaching the end of their life cycle and the structuring of an industrial chain capable of reusing critical materials.
Sales of Lithium and Recycled Metals Surpass the Value of the Batteries Themselves
Within the battery recycling in China, the greatest economic weight lies in the recovery and commercialization of lithium and recycled metals.
Only the sale of materials such as lithium, nickel, cobalt, and lead generated approximately 647 billion yuan in the last year, equivalent to about US$ 90 billion.
This number shows that recycling has ceased to be merely an environmental requirement.
In practice, it has come to occupy a central role in the battery supply chain, reducing dependence on virgin raw materials and helping to contain costs in a highly competitive sector.
Two Models Dominate Battery Recycling in China
Currently, battery recycling in China follows two main paths.
The first is called cascade use, when batteries removed from operational electric vehicles are used in secondary applications, such as stationary energy storage systems.
The second model is the actual recycling of materials.
In this process, batteries are disassembled and go through chemical and physical stages to recover strategic metals.
These inputs return to the industry, closing the production cycle of electric vehicles in China.
Large Manufacturers Dominate the Used Battery Market
The advancement of the used battery market is also marked by the strong presence of large industrial groups.
Companies such as CATL and BYD operate in an integrated manner, participating in both battery manufacturing and recycling.
At the same time, companies specialized in materials and mining reinforce the intermediate link in the chain.
In 2024, China had 156 companies authorized to recycle lithium-ion batteries, with a nominal capacity exceeding 420 million tons per year.
In the lead-acid battery segment, another 71 licensed companies had a declared annual capacity of about 1.47 billion tons.
Billion-Dollar Revenue Boosts the Battery Supply Chain
Furthermore, from a financial perspective, lithium battery recycling accounted for approximately 220 billion yuan in revenue from the sale of recycled materials in 2024.
Meanwhile, lead recycling generated about 427 billion yuan in the same period.
Together, these operations account for most of the US$ 90 billion generated by the sector that year, not considering the economic value of discarded batteries.
This scenario reinforces the strategic importance of recycling for the battery supply chain and for the electric vehicle industry in China as a whole.
Regional Concentration Strengthens Industrial Clusters
Battery recycling in China exhibits strong regional concentration.
Moreover, provinces such as Jiangxi, Guangdong, Zhejiang, and Anhui lead operations, benefiting from proximity to battery factories and electric vehicle manufacturers.
In terms of market share, operations linked to CATL and Bangpu Recycling lead the recognized capacity for lithium battery recycling.
This is followed by groups such as GEM and Ganfeng Lithium, reinforcing integration between recycling and the mining of lithium and recycled metals.
Strict Regulation Accelerates Professionalization of the Sector
The growth of the sector occurs in parallel with regulatory advancement.
Thus, in February 2025, the State Council of China approved a national plan to standardize
the collection of used batteries, strengthen traceability, and reduce informal recycling.
The initiative aims to industrialize the process, increase environmental safety, and ensure greater control over a market
that is expected to grow rapidly with the expansion of electric vehicles in China.
Projections Indicate Accelerated Growth Until 2030
The outlook for battery recycling in China is even more impressive.
According to Qianzhan Industry Research, the total market value is expected to exceed 1 trillion yuan by 2030, around US$ 139 billion.
The revenue derived exclusively from the sale of lithium and recycled metals could exceed 2 trillion yuan in the same period, amounting to about US$ 280 billion.
With this, recycling consolidates itself as one of the strategic pillars of the electric vehicle industry
in China and a key factor for ensuring economic sustainability and supply security over the next decade.
Excelente! Son primeros pasos que posiblemente ayuden a reducir el costo de las baterías vehiculares, que es el factor que más incide en este momento, en la alta devaluación de los vehículos, una vez salen de las vitrinas.