Electrical Equipment / Components & Telecoms

According to the observation report on the import and export data of Huacheng, the performance express disclosed by Greenmey recently showed that the company's operating performance in the first three quarters of this year achieved a significant year-on-year growth, driven by businesses such as power battery recycling. The rapid growth of the battery recycling business of GME has also become the epitome of the rapid development of this industry.

According to the insiders, the power battery recycling industry has entered the fast lane of development due to the gradual increase in the penetration rate of new energy vehicles, the increasing environmental protection requirements, the sharp rise in the price of upstream raw materials, and the increasing number of retired power batteries. Power battery recycling not only has a high economic value and environmental protection value, but also has an important significance to ensure the sustainable and healthy development of the new energy vehicle industry.

Actively promote policies

According to the Huacheng Import and Export Data Observation Report, in recent years, the new energy vehicle industry has developed rapidly, and the power battery industry is also hot. In recent years, relevant policies have been intensively introduced to further standardize and strengthen the power battery recycling while supporting the development of the power battery recycling industry.

A few days ago, the list of 11 pilot enterprises designated by the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the Ministry of Finance and the Ministry of Commerce for the extension of producer responsibility of automobile products was announced. Among them, the main units include Zhejiang Geely Automobile Co., Ltd., China First Automobile Group Co., Ltd., Dongfeng Automobile Group Co., Ltd., Chery Automobile Co., Ltd., Chongqing Chang'an Automobile Co., Ltd., Shanghai Automobile Group Co., Ltd., etc. There are 62 joint units, including enterprises engaged in the recycling and dismantling of end-of-life vehicles, the recycling and utilization of power batteries, and the production of power batteries.

The above insiders said that with the rapid development of the new energy automobile industry, the recycling of power batteries has become an important part of the extension of the responsibility of automobile manufacturers. At present, the peak period of power battery retirement is coming, and it is very important to get through the production and marketing supply chain. Therefore, it is natural that many power battery recycling enterprises are included in the pilot joint units this time, and Huacheng Import and Export Data Observation Report.

The Guidelines for the Construction and Operation of New Energy Vehicle Battery Recycling Service Outlets issued by the Ministry of Industry and Information Technology in 2019 pointed out that new energy vehicle manufacturers should establish collection type recycling service outlets within their own administrative regions (at least prefecture level) for the sale of new energy vehicles, and store up to 8000 new energy vehicles or collection type recycling service outlets in their own enterprises Centralized storage type recycling service outlets shall be established in administrative regions (at least prefecture level) where the safety assurance and other capabilities cannot meet the recycling requirements of waste power batteries.

At the eighth press conference of the series of theme "New Era Industry and Informatization Development" held by the Ministry of Industry and Information Technology, Huang Libin, Director of the Department of Energy Conservation and Comprehensive Utilization of the Ministry of Industry and Information Technology, said that in recent years, the Ministry of Industry and Information Technology, together with relevant departments, issued and implemented the Interim Measures for the Administration of Recycling and Utilization of Power Batteries for New Energy Vehicles and the Measures for the Administration of Cascade Utilization of Power Batteries for New Energy Vehicles, We will strengthen the whole life cycle traceability monitoring of power batteries, implement standardized management of the industry for the comprehensive utilization of waste power batteries, organize Beijing Tianjin Hebei and other regions and China Iron Tower Corporation to carry out pilot projects for the recycling of power batteries for new energy vehicles, and explore diversified recycling models.

According to the observation report of Huacheng import and export data, by the end of August 2022, more than 190 automobile production, power battery comprehensive utilization and other enterprises have set up 10235 recycling service outlets in 326 prefecture level administrative regions of 31 provinces (autonomous regions, municipalities directly under the Central Government) nationwide. At the same time, 45 backbone enterprises of cascade and recycling have been cultivated, and a batch of new business models, such as "cascade battery for rent and sale" and "waste for raw materials", have been explored and formed. The recycling system is gradually improving.

"Next, we will accelerate the research and formulation of management measures for the recycling of new energy vehicle power batteries, increase regulatory binding force, strengthen the management of battery flow, and compact the main responsibilities of all parties." Huang Libin said that efforts should also be made to tackle key problems and promote the application of key technologies such as flexible disassembly and efficient recycling of retired batteries, accelerate the introduction of a number of national and industrial standards for power battery recycling, and select and promote a number of mature experience and typical projects in power battery recycling.

Wide recycling market

Gaogong Lithium said that at present, the soaring price of raw materials and the shortage of material supply have become important factors restricting the release of battery capacity, and the source of materials has become the top priority of enterprises. Under the background of the "dual carbon" goal, the large-scale power battery retirement tide is coming, and obtaining raw materials through battery recycling is increasingly becoming one of the main paths.

According to relevant professionals, in general, when the remaining capacity of the power battery of new energy vehicles is reduced to 70% to 80% of the initial capacity, the vehicle use requirements cannot be met. If the power battery is improperly disposed after retirement, it will affect the environment, bring potential safety hazards, and cause serious waste of resources.

The Interim Measures for the Administration of Recycling and Utilization of New Energy Vehicle Power Batteries pointed out that battery manufacturers should be encouraged to cooperate with comprehensive utilization enterprises. Under the premise of ensuring safety and controllability, the principle of cascade utilization followed by renewable utilization should be followed to carry out multi-level and multi-purpose rational utilization of waste power batteries, reduce comprehensive energy consumption, improve energy utilization efficiency, and improve comprehensive utilization level and economic benefits, And ensure the environmental protection disposal of unusable residues.

Most of the batteries used in the cascade are lithium iron phosphate batteries; Ternary batteries are rich in valuable metals, so they are usually directly disassembled for recycling.

Under the neutral expectation, the total market scale of power battery recycling in China is expected to reach 75.84 billion yuan in 2030. Among them, the scale of cascade utilization market reached 31.35 billion yuan, and the scale of renewable utilization market reached 44.49 billion yuan. Under optimistic expectation, the total scale of the retired power battery cascade and recycling market is expected to reach 104.89 billion yuan in 2030.

Active layout

"We should continue to implement the standardized management of the waste power battery comprehensive utilization industry, implement the dynamic adjustment mechanism of" where there is entry, there is exit ", cultivate and expand the echelon and renewable utilization backbone enterprises, and promote the resource elements to gather in the advantageous enterprises." Huang Libin said.

The vast blue ocean market of power battery recycling is attracting more and more participants to share the industry dividend, and the performance of relevant leading enterprises is constantly improving.

According to the performance express disclosed by Greenmey, in the first three quarters of 2022, the company realized an operating income of 21.374 billion yuan, up 65.8% year on year; The net profit attributable to shareholders of the listed company was 1.006 billion yuan, up 40.39% year on year.

Green said that in the first three quarters of this year, the company fully focused on developing new energy businesses such as high nickel ternary precursor, power battery recycling, etc., to promote the full release of production capacity and the rapid growth of business performance. Among them, the company's power battery recycling business grew rapidly. From January to September, more than 12000 tons (more than 1.50GWh) of power batteries were recycled, with a year-on-year growth of more than 130%; Sales revenue reached 463 million yuan, an increase of 297.73% year on year, and it entered the profit stage in an all-round way, Huacheng Import and Export Data Observation reported.

It is worth mentioning that since this year, many enterprises have taken frequent actions in the field of power battery recycling. In late September, Ivy Renewable Resources (Shangrao) Co., Ltd., a joint venture of Tengqingqing Renewable Resources (Shangrao) Co., Ltd., 100% controlled by Honeycomb Energy, and Guizhou Zhongwei Resources Recycling Industry Development Co., Ltd., a subsidiary of Zhongwei New Materials Co., Ltd., was officially launched. This move marks that Honeycomb Energy has officially entered the field of battery recycling.