With the rapid development of the new energy vehicle industry, power batteries in China have entered a large-scale retirement stage. Against this backdrop, the recycling and utilization of waste lithium-ion batteries have not only become a key measure to solve environmental protection problems, but also, driven by both policy support and technological innovation, emerged as a new engine for enterprises to achieve green transformation and value growth.
Policy System Gradually Improves, Building a Full-Chain Management Framework
At the beginning of 2025, the national government has continued to strengthen policy support for power battery recycling and utilization. The "Action Plan for Improving the Recycling and Utilization System of New Energy Vehicle Power Batteries" reviewed and approved at the executive meeting of the State Council clearly proposes to build a standardized, safe, and efficient recycling and utilization system, and realize the whole-process traceability of production, sales, disassembly, and utilization using digital technology. In addition, the Ministry of Industry and Information Technology revised and issued the "Industrial Standards for the Comprehensive Utilization of Waste Power Batteries from New Energy Vehicles (2024 Version)" in December 2024, which further raised technical thresholds – increasing the technical indicator of lithium recovery rate in the smelting process from no less than 85% to no less than 90%, and adding requirements such as a recovery rate of electrode powder after crushing and separation of no less than 98% – to guide enterprises in strengthening technological innovation.
Local governments have also actively responded. Chengdu, Sichuan Province, supports the large-scale recycling and echelon utilization of waste power batteries from new energy vehicles; Anhui Province plans to build a nationally influential industrial cluster for power battery recycling and utilization by 2027; and Chongqing Municipality has incorporated waste power battery recycling into its action plan for the comprehensive green transformation of economic and social development. Currently, China has established more than 10,000 recycling service outlets, forming a recycling model dominated by automobile manufacturers, power battery producers, and comprehensive utilization enterprises, which lays a solid foundation for the standardized development of the industry.
Prominent Environmental and Resource Benefits, Solving Dual Industrial Pain Points
The dual value of waste lithium-ion battery recycling in environmental protection and resource circulation has become increasingly prominent. Traditional lithium-ion battery recycling faces problems such as high reagent consumption in wet processes and easy volatilization loss of lithium in pyrometallurgical smelting. However, the application of innovative technologies is changing this situation. The "Lixiang Green Action" team from Jiangxi University of Science and Technology has developed a short-process green recycling technology system. Based on the concept of "waste-waste synergy", the system increases the selective leaching rate of lithium to over 97% while reducing lithium extraction costs by approximately 20%. In the process of handling lithium iron phosphate batteries, the team innovatively uses waste lead paste generated from waste lead-acid battery recycling for synergistic smelting, achieving a lithium recovery rate of 96%, a lead recovery rate of 98%, and a sulfur fixation rate of 99%, significantly reducing the risk of secondary pollution.
The benefits of resource circulation and utilization are also remarkable. After introducing advanced recycling equipment, a large new energy vehicle manufacturer can recover approximately 200 tons of cobalt, 150 tons of lithium, and 100 tons of nickel annually, reducing raw material costs by about 30%. This "urban mine" model not only eases China's dependence on imported scarce resources such as lithium and cobalt, but also provides a guarantee for the sustainable development of the new energy industry through efficient resource circulation and utilization. It is estimated that in 2025, the actual recovery volume of power batteries in China will exceed 500,000 tons, with a comprehensive utilization volume of 416,000 tons, effectively reducing heavy metal pollution and carbon emissions.
Multi-Dimensional Enhancement of Enterprise Value, Opening Up New Growth Paths
For enterprises, the waste lithium-ion battery recycling business is becoming a new profit growth point and source of competitiveness. According to the 2025 H1 financial report of GEM Co., Ltd. (a listed company), the revenue of its battery materials and recycling business reached 7.887 billion yuan with a gross profit margin of 26.42%, and the recycled and disassembled power batteries amounted to 22,400 tons, a year-on-year increase of 37% – highlighting the strong growth potential of the recycling business.
Cost optimization driven by technological innovation has created considerable economic benefits for enterprises. The Zinc-Lithium Green Drive team has independently developed supercritical CO₂ extraction technology and solvothermal synthesis process, reducing the electrolyte treatment cost to 310 yuan/ton – a decrease of 55.7% compared with the industry average – and cutting the production cost of negative electrode materials per ton by 26.1%. The one-step cathode regeneration solution developed by the Dalian Institute of Chemical Physics, Chinese Academy of Sciences, reduces the cost of cathode materials by 38.3% to 73.6%, significantly enhancing product competitiveness. These technological breakthroughs not only shorten the investment payback period, but also transform the recycling business from a cost center to a profit center.
At the same time, the recycling business helps enterprises improve their ESG (Environmental, Social, and Governance) performance and enhance brand reputation. By establishing a sound recycling system, enterprises can effectively reduce the carbon footprint of their products and obtain carbon credit trading income. Taking the pilot production line of Zinc-Lithium Green Drive with an annual output of 200 tons as an example, its annual carbon credit trading income exceeds 8 million yuan, becoming a new source of income for the enterprise.
Technological Innovation Leads Development, Broad Market Prospects
The rapid development of the industry is inseparable from the strong support of technological innovation. The "Lixiang Life" technology team from Shandong University of Science and Technology has developed an integrated recycling technology, which increases the flotation separation efficiency of waste lithium-ion batteries by 35%, the targeted metal leaching rate by 26%, and reduces the treatment cost per ton by 6,000 yuan. The fully sealed nitrogen protection system developed by Lvjie Environmental Protection crushes lithium-ion batteries with electricity in an oxygen-free environment, which not only avoids the complex process of traditional pretreatment discharge, but also eliminates the risk of explosion, setting a new benchmark for safety and environmental protection in the industry.
Driven by both technological progress and policy support, the scale of China's waste lithium-ion battery recycling market continues to expand. According to the prediction of the China Commercial Industry Research Institute, the output value of China's waste battery recycling and utilization industry will reach 67.1 billion yuan in 2025, exceed 280 billion yuan by 2028, and is expected to break through 140 billion yuan by 2030. With the surge in the number of retired batteries and the continuous maturity of recycling technologies, waste lithium-ion battery recycling is transforming from a necessary environmental protection measure to an indispensable link in the value chain of the new energy industry, bringing enterprises new opportunities for sustained growth.
Facing this blue ocean market, enterprises with technological advantages, financial strength, and a sound recycling network will stand out. Waste lithium-ion battery recycling not only solves environmental and resource problems, but also reshapes enterprise value in industrial upgrading, injecting a steady stream of impetus into the sustainable development of the new energy industry.
