By 2025, a wave of retired power batteries is set to hit China. According to data from the China Association of Automobile Manufacturers (CAAM), China has led the world in new energy vehicle (NEV) production and sales for nine consecutive years since 2015. Given that power batteries typically last around a decade, a surge of end-of-life batteries is now poised to enter the recycling stream. This represents not just a vast market opportunity, but also a major test of how environmental protection and economic development can be deeply integrated.
Effectively managing the coming deluge of used batteries has become a defining challenge for the sustainable growth of the power battery industry.
The situation is a double-edged sword. On one side, battery recycling holds the key to mitigating environmental pollution and enabling resource circularity. On the other, the industry still lacks regulatory consistency. Many retired batteries end up in informal workshops. Standards are missing, testing costs are high, and environmental risks remain, limiting the potential value of battery recycling.
Battery recycling represents both an opportunity and a challenge. On one hand, it is crucial for addressing environmental pollution and reclaiming valuable metals like lithium, cobalt, and nickel. On the other, insufficient regulation has led many retired batteries to end up in small, unregulated workshops, where safety and environmental standards are often ignored. This is further complicated by the lack of standardized technologies, high costs for safety testing, and looming environmental risks, which collectively hinder the industry’s ability to scale and release value.
With both value creation and risk coexisting in this emerging sector, what’s needed is not only forward-looking policy, but also industry players with a strong sense of responsibility. In response, China’s Ministry of Industry and Information Technology has released whitelists detailing 156 certified battery recycling companies, providing a framework for regulated industry development.
Still, the whitelists are only a starting point. Major challenges remain across the sector. As the retirement wave accelerates, questions loom:
- How can a stable recycling system be built?
- How can efficiency be improved?
- And how can the tension between technological feasibility and economic viability be resolved?
These are the issues confronting all market players, those on the whitelists included.
So what’s the current state of battery recycling, and what are the technical pain points of disassembly? In a recent conversation, 36Kr spoke with Chu Bing, chairman of Eagoal New Energy, to discuss both the difficulties and breakthroughs shaping the future of battery recycling.
The following transcript has been edited and consolidated for brevity and clarity.
36Kr: As we approach the peak of battery retirements in China, what are the biggest challenges the industry faces today?
Chu Bing (CB): The challenges are manifold, ranging from fragmented recycling channels to technical barriers and high operational costs. Right now, battery collection channels across China are decentralized and unreliable, making it hard for recycling companies to secure a consistent supply of retired batteries. This fragmentation increases both the difficulty and the cost of collection, limiting the potential for scale.
36Kr: How is Eagoal responding to these industry challenges while maintaining its competitive edge?
CB: Eagoal got an early start and has since built partnerships with numerous battery makers, which gives us a strong advantage in securing stable upstream supply. We also anticipated the rationalization of raw material prices and made preparations accordingly. Add to that our fully integrated post-market ecosystem, and we’re now in a much better position to manage risk.
Eagoal has essentially completed a nationwide deployment of its business model, establishing a closed-loop value chain covering resources, manufacturing, application, and recycling, and this has become our core strength.
Ongoing innovation is another pillar of our strategy. We’ve developed a series of proprietary technologies, including end-of-life battery life prediction, non-destructive disassembly, rapid state-of-health and residual value assessments, and intelligent, high-efficiency roll-core disassembly.
36Kr: Speaking of disassembly, what’s the current average recovery rate in the industry? Is Eagoal outperforming that average?
CB: Battery disassembly is primarily aimed at extracting valuable metals like lithium, which is a critical resource that’s in short supply in China. Battery recycling provides a crucial secondary source of lithium, helping alleviate resource constraints.
In terms of recovery rates, Eagoal performs above the industry norm. For metals like nickel, cobalt, and lithium, our rates are generally one to two percentage points higher than the average.
36Kr: Do recovery profit margins vary significantly by battery type, say, between lithium iron phosphate, ternary lithium, and sodium-ion batteries? Which type is currently the most economical to recycle?
CB: Yes, profit margins vary depending on the metal content, technical complexity, market prices, and maturity of recycling processes.
Right now, ternary lithium batteries are the most economically viable to recycle, thanks to their high-value metals and mature recovery technologies. Lithium iron phosphate batteries depend more on the market price of lithium carbonate and the potential for second-life applications. As for sodium-ion batteries, large-scale recycling hasn’t taken off yet, but the future profit potential is certainly there.
36Kr: There’s often a trade-off between environmental impact and cost when choosing a recycling method. For instance, hydrometallurgy is cleaner but more expensive, while pyrometallurgy is cheaper but more polluting. How does Eagoal balance these concerns?
CB: Hydrometallurgy stands out for its adaptability to different materials. It also delivers high-quality outputs, whether it’s lithium carbonate, iron phosphate, cobalt sulfate, nickel sulfate, manganese sulfate, or graphite. These products meet international standards in terms of purity and stability. Hydrometallurgy also allows for customization, enabling us to tailor products to meet the specific needs of different cathode and anode materials manufacturers.
36Kr: Circular economy has become a central theme in industrial transformation. How do you see battery recycling fitting into that bigger picture? And what role does Eagoal play in it?
CB: Battery recycling plays a key role in the broader push toward a circular economy. With growing global demand for sustainable development and resource efficiency, effectively recycling used batteries can relieve resource shortages and reduce environmental impact. It also accelerates the shift to low-carbon growth.
Eagoal is focused on aligning with green and circular economic trends. We’ve gone beyond just manufacturing and using batteries. We’re deeply involved in closing the loop at the end of the battery life cycle. This end-to-end approach allows us to integrate upstream and downstream resources, boost overall supply chain efficiency, and secure a strong position in the new energy post-market.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Wang Shun for 36Kr.