Yiyuan Lithium Energy is set to launch a global battery recycling network this June, with a target of establishing 1,000 collection points. This initiative, named the Cradle Program, will also feature a dedicated website for users to locate specific recycling sites.
In a recent interview with Jiemian News, Xiao Zhongxiang, General Manager of the ESG Carbon Neutral Department at Yiyuan Lithium Energy, shared these details. Currently, the company has completed the setup of 246 collection points, comprising 159 in China and 87 internationally, covering over 30 countries across North America, Europe, and the Asia-Pacific region.
The collection points are primarily established in collaboration with local enterprises and are designed to recycle various types of lithium batteries, including power and consumer batteries, regardless of the brand. Xiao stated that the aim of the Cradle Program is to address issues related to the fragmented traditional battery recycling system and the high logistics costs associated with cross-border recycling, enabling a model where retired batteries can be collected immediately upon their removal.
According to data from industry consultancy SNE, Yiyuan Lithium Energy ranked ninth globally in the power battery installation volume last year and second in energy storage battery shipments. The company also sells consumer batteries used in electric tools, electric scooters, and medical devices.
The currently established recycling points are operational; however, the volume of retired power batteries remains low as the anticipated surge in retirements has not yet occurred. Data from the Ministry of Industry and Information Technology indicates that the comprehensive utilization of retired power batteries in China is expected to exceed 300,000 tons in 2024, representing a 33% year-on-year increase.
Xiao noted that the primary source of power battery recycling currently comes from batteries produced before 2019, as the massive adoption of power batteries began after 2020. Typically, the lifespan of electric vehicle batteries is around 6-8 years, and the disorganized state of the recycling industry has hindered the growth of recycling volumes.
“In the next 2-3 years, as the wave of retiring power batteries arrives and recycling initiatives progress, we expect an increase in the volume of batteries collected and processed at our sites,” Xiao predicted.
Predictions regarding the timeline for the wave of retiring power batteries vary within the industry. Statistics from the China Automotive Engineering Society indicate that 2023 marked the peak period for the retirement of these batteries in China. Zhao Xiaoyong, General Manager of Beijing Saide Mei Resource Recycling Research Institute, believes that a small peak in battery retirements will occur between 2025 and 2027, with an even larger peak anticipated from 2030 to 2032.
Depending on the condition of the recycled batteries, they will mainly be redirected towards two channels: second-life applications and material recovery. Second-life batteries can be utilized in backup power systems and solar street lights, while materials recovered from dismantled batteries will serve as raw materials for new battery production.
In overseas markets, particularly in the European Union, there are already regulations regarding the use of recycled materials in battery production. According to the EU Battery Regulation, starting in 2031, electric vehicle batteries sold in the EU must contain a minimum of 6% recycled lithium and nickel and 16% recycled cobalt. This requirement will increase by 2036, with recycled cobalt’s share rising to at least 26%.
Xiao revealed that several downstream clients in various power battery projects have requested specific ratios for the use of recycled materials. He mentioned that, from an industry perspective, the supply of recycled battery materials is currently quite tight.
Last year, Yiyuan Lithium Energy utilized a total of 1,154 tons of recycled materials in its battery production. The company’s affiliate, Jinquan New Materials, has the capacity to process 20,000 tons of waste batteries annually, achieving recovery rates of over 98% for nickel and cobalt, and over 92% for lithium.
In addition to Yiyuan, other leading battery manufacturers in China, such as CATL and BYD, have also begun to develop their own recycling and utilization businesses. Last year, CATL’s comprehensive recycling volume reached 128,700 tons, marking a 28.7% increase from the previous year. By the end of last year, CATL had established over 240 battery recycling points in China and partnered with over 60 recycling companies across 26 countries.
In China, CATL’s battery recycling and reuse operations are mainly handled by its subsidiary, Bangpu Recycling, which boasts recovery rates of 99.6% for nickel, cobalt, and manganese metals, and 91% for lithium metals. The company’s Chairman, Zeng Yuqun, predicted last year that by 2042, half of the batteries produced globally will utilize recycled lithium.
BYD has also established two battery recycling plants in China, with battery recycling volumes exceeding 10,000 tons last year. The company disclosed that its domestic battery recycling network primarily relies on industrial parks in various provinces, setting up centralized storage points and connecting them through its logistics system. Overseas, BYD mainly entrusts local compliant third-party recycling agencies for the processing of waste batteries, but has not disclosed the exact number of its recycling points.
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