The Ministry of Commerce of China has recently released data revealing a remarkable milestone in the country's automotive industry transformation. As of 24:00 on November 18th, the subsidy applications for both vehicle scrapping and replacement programs across the nation have surpassed 2 million each, with the combined total exceeding 4 million filings.
From CCTV
The Ministry of Commerce of China has recently released data revealing a remarkable milestone in the country's automotive industry transformation. As of 24:00 on November 18th, the subsidy applications for both vehicle scrapping and replacement programs across the nation have surpassed 2 million each, with the combined total exceeding 4 million filings.
Under the "trade-in" policy framework, the vehicles eligible for scrapping applications not only include petrol-powered passenger cars that meet the National Emission Standard III or below but also new energy passenger vehicles registered before April 30, 2018. The dismantling of new energy vehicles, however, stands in stark contrast to that of traditional fuel vehicles, with the recycling of power batteries being the most crucial aspect.
Experts have pointed out that the performance of power batteries deteriorates as the number of charging cycles increases. Once the battery capacity drops below 80% of its rated capacity, it becomes unfit for use in electric vehicles and requires proper handling by qualified and legitimate power battery recycling enterprises. Mishandling of these retired power batteries could lead to severe environmental pollution, posing a significant threat to ecological balance.
A latest research report forecasts that by 2025, the weight of retired power batteries, the core component of scrapped new energy vehicles, will approach a staggering 800,000 metric tons. The question of how to manage such a colossal volume of retired power batteries looms large.
Currently, there are two primary paths in the recycling utilization model. The first is "cascade utilization", which involves disassembling and reconfiguring retired power batteries for use in fields like energy storage where the requirements for battery energy density are relatively low. The second is the recovery and extraction of raw materials, specifically costly metal elements such as cobalt, nickel, and lithium from the scrapped batteries.
At the Laogang Industrial Park in Shanghai, our reporter visited China's first independently developed intelligent dismantling line for new energy vehicles. Upon arrival at the plant, each vehicle is automatically transported along a rail system and precisely positioned by sensors, streamlining the initial stage of the recycling process.
The removed retired power batteries are then transferred to battery recycling enterprises for resource recovery. Through advanced chemical processes, these facilities can extract recycled materials, achieving an impressive recovery rate of 99.6% for nickel, cobalt, and manganese, and 91% for lithium. These recovered materials can be reprocessed into cathode materials for new power batteries, truly realizing a circular lifecycle where resources return to their origin within the battery supply chain.
According to experts, the Ministry of Industry and Information Technology has so far announced five batches of compliant comprehensive utilization enterprises for retired power batteries, totaling 148 companies, laying the foundation for an initial recycling network across the country.
Zhu Liyang, President of the China Association of Circular Economy, emphasized that the key to successful recycling lies in smoothing out the entire industrial chain, from collection and dismantling to reprocessing and reuse of the hundreds of thousands of tons of materials. There is an urgent need to enhance and refine relevant regulations to ensure its seamless operation.
Insiders also disclosed to our reporter that, at present, China still lacks clear scrapping standards for electric vehicles powered by batteries, including protocols for better recycling, safer dismantling, and more efficient reuse. Nevertheless, the Chinese government is expediting the formulation of corresponding policies and regulations to strengthen supervision over the entire process of used power battery recycling and reuse, aiming to address these challenges head-on and drive sustainable development in the automotive and energy sectors.