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These factors have added difficulty and cost to the cascade utilization of retired power lithium batteries. After Battery recycling are recycled, they should be tested first, then classified according to different sources, specifications and capacities, and finally reorganized and reused.

Recycling refers to the complete scrapping of batteries, the dismantling, crushing, sorting, material repair or smelting of waste batteries, the extraction of metal elements such as lithium, cobalt, nickel, manganese, and the use of these materials to rebuild batteries.

According to the survey of the Electric Vehicle Hundred Talents Association, Lithium iron phosphate will be the main type of discarded power lithium batteries around 2020. By 2022, the amount of retired ternary and Lithium iron phosphate power lithium batteries will be almost the same. It is expected that the scrap amount of ternary power lithium batteries will continue to increase in 2023-2025, but with the trend of market-oriented development of new energy vehicles, low-cost, new module Lithium iron phosphate ion batteries will again be favored by the market.

The retired Lithium iron phosphate ion battery has a general cycle life of 2000 to 6000 times, which is more suitable for cascade utilization. The retired ternary lithium-ion batteries only have 800 to 2000 cycles, and due to their valence metals (nickel 12.1%, cobalt 3%, lithium 1.9%), they are more suitable for direct regeneration and utilization.

According to the report of China Business News in November 2019, the price of new Lithium iron phosphate ion batteries has dropped to 90 cents per kilowatt hour, or even lower. The cost of recycling Lithium iron phosphate ion batteries is about 6 to 7 cents per kilowatt hour. It is still difficult to make profits in this market environment. Naturally, the company has insufficient power to recycle Lithium iron phosphate ion batteries.

However, with the release of the national new energy subsidy policy in April 2020, the industry will shift from strong policy driven to market driven, and the pressure on Alternative fuel vehicle to reduce costs and increase efficiency will increase. The price of new Lithium iron phosphate ion batteries will continue to rise, and the company's power to recycle Lithium iron phosphate ion batteries is expected to rebound.

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