Introduction to China’s EV Market
China has become the world’s largest electric vehicle (EV) market and a major global manufacturing hub for EVs and their batteries. In 2024, the country accounted for over 70% of global electric-car production and more than half of global EV sales. Chinese firms like CATL and BYD control close to half of global EV battery output, according to the International Energy Agency.
Recycling and Repurposing Old Batteries
Many carmakers in China now offer take-back schemes or trade-in opportunities for old batteries when owners scrap a vehicle or buy a new one. Companies like BYD and Geely have launched dedicated recycling programs. BYD runs its own recycling operations, processing thousands of end-of-life packs a year, and has partnered with specialist recyclers to recover materials from its batteries. Geely has built a "circular manufacturing" system that combines disassembly of scrapped vehicles, cascade use of power batteries, and high recovery rates for metals and other materials.
CATL’s Advanced Recycling System
CATL, China’s biggest EV maker, has created one of the industry’s most developed recycling systems through its subsidiary Brunp. With over 240 collection depots and an annual disposal capacity of about 270,000 tons of waste batteries, CATL achieves metal recovery rates above 99% for nickel, cobalt, and manganese. According to Alex Li, a battery engineer based in Shanghai, "No one is better equipped to handle these batteries than the companies that make them," as they understand the chemistry, supply chain, and uses for recovered materials.
Challenges in the EV Market
However, not every consumer can receive support from the maker of their EV, as many smaller EV brands and startups have gone bankrupt due to the price war. In the past five years, over 400 smaller EV brands and startups have ceased to exist, leaving only 100 active brands today. This poses a challenge for the recycling and repurposing of old batteries, as many of these bankrupt companies’ products will eventually need to be disposed of.
The Future of EV Battery Recycling
Analysts expect a significant increase in used batteries hitting the market in the coming years, as the first big wave of EVs bought under generous subsidies reach retirement age. According to Alex Li, "China is going to need to move much faster toward a comprehensive end-of-life system for EV batteries—one that can trace, reuse, and recycle them at scale, instead of leaving so many to disappear into the gray market." This will require significant investment and innovation in recycling technologies and infrastructure.
Conclusion
In conclusion, China’s EV market is leading the way in recycling and repurposing old batteries, with companies like CATL, BYD, and Geely investing heavily in recycling programs and technologies. However, the industry still faces significant challenges, including the disposal of batteries from bankrupt companies and the need for a comprehensive end-of-life system. As the demand for EVs continues to grow, it is essential that China and other countries prioritize the development of sustainable and efficient battery recycling systems.
FAQs
Q: What percentage of global electric-car production does China account for?
A: China accounts for over 70% of global electric-car production.
Q: Which companies control close to half of global EV battery output?
A: Chinese firms like CATL and BYD control close to half of global EV battery output.
Q: What is the "circular manufacturing" system developed by Geely?
A: Geely’s "circular manufacturing" system combines disassembly of scrapped vehicles, cascade use of power batteries, and high recovery rates for metals and other materials.
Q: How many collection depots does CATL’s subsidiary Brunp have?
A: CATL’s subsidiary Brunp has over 240 collection depots.
Q: What is the expected outcome for used batteries in the coming years?
A: Analysts expect a significant increase in used batteries hitting the market in the coming years, as the first big wave of EVs bought under generous subsidies reach retirement age.
