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Where have retired batteries gone? The recycling industry has just hit the road

Based on the dual considerations of energy conservation and environmental protection, China advocates the development of new energy vehicles. However, if the recycling and utilization of power batteries are not done well, it can actually cause serious environmental pollution and resource waste.

On August 1st, with the official implementation of the "Interim Measures for the Management of Recycling and Utilization of Power Batteries for New Energy Vehicles" and the "Interim Regulations on the Traceability Management of Recycling and Utilization of Power Batteries for New Energy Vehicles", China began to carry out full lifecycle traceability management for each power battery, and established a control system for power battery products with "traceable source, traceable destination, controllable nodes, and traceable responsibilities".

The system has been established, what is the current market situation for the recycling and utilization of power batteries? Who is qualified to recycle and reuse power batteries? What are the problems in recycling? Regarding the hot issues of common concern in the industry, a reporter from China Automotive News interviewed the research team of the power battery recycling and utilization management policy of the Data Resource Center of China Automotive Technology Research Center Co., Ltd. (hereinafter referred to as China Automotive Center).

In recent years, the China Automotive Center has been commissioned by the Ministry of Industry and Information Technology to carry out a series of top-level designs for the management system of power battery recycling and utilization, supporting government regulatory departments in formulating and issuing relevant management regulations for power batteries, and jointly building the "National Monitoring and Power Battery Recycling and Utilization Traceability Comprehensive Management Platform for New Energy Vehicles" with Beijing Institute of Technology to achieve tracking and control of the entire life cycle of power batteries. In addition, the standard research work in the field of power battery recycling is also steadily advancing.

Currently, the number of retired power batteries is relatively small

Regarding the current status of China's power battery recycling industry, Chen Ping, Deputy Director of the Data Resource Center of China Automotive Center, said:

·At present, the number of retired power batteries in China is still relatively small, and the recycling industry is in its early stages of development. Most of the batteries assembled in the early stage of new energy vehicles in China are lithium iron phosphate batteries, followed by ternary batteries;

·At present, the retired batteries in the market are mainly lithium iron phosphate batteries, which contain fewer precious metal elements and therefore have low recycling value. However, due to its high safety and long service life, it is more suitable for cascading utilization;

·Ternary batteries contain rare metals such as nickel and cobalt in China, which have high value for recycling.

China launched the "Ten Cities, Thousand Vehicles" project in 2009 to promote new energy vehicles, and a total of 17000 new energy vehicles were promoted from 2009 to 2012. After 2013, new energy vehicles entered the stage of large-scale promotion and application. As of June 2018, the cumulative production has reached 2.2 million vehicles, accounting for nearly 50% of the world's total production. China has become the world's largest producer and seller of new energy vehicles. As the core component of new energy vehicles, the matching quantity of power batteries has been increasing year by year, and as of June 2018, the cumulative assembly of power batteries has exceeded 103 GWh.

According to comprehensive calculations by relevant experts from the aspects of enterprise warranty period, battery cycle life, and vehicle usage conditions, these batteries will enter large-scale retirement in 2020. At that time, there will be a total of over 200000 tons (24.6GWh) of retired batteries. If calculated based on 70% that can be used for cascading utilization, approximately 60000 tons of batteries will need to be scrapped.

The rapid development of recycling enterprises and the exploration stage of hierarchical utilization are still in progress

When the remaining capacity of the power battery on a new energy vehicle drops to 70% -80% of its initial capacity, it cannot meet the requirements for vehicle use and needs to be retired. The recycling and utilization of retired power batteries includes two stages: cascading utilization and resource recovery. The hierarchical utilization of power batteries is widely favored in the field of energy storage. For those with hierarchical utilization value, they can be used in fields such as energy storage and backup; For those without hierarchical utilization value, valuable metals can be extracted through renewable utilization to maximize the comprehensive utilization benefits of resources.

From the perspective of industry development, Chen Ping believes that the development of recycling enterprises is relatively fast. A group of typical enterprises represented by GEM, Bangpu, Huayou Cobalt, Guangdong Guanghua, Ganzhou Haopeng, etc. have relatively mature technologies for the recycling and utilization of waste power batteries, and have formed batch quantitative recycling and disposal capabilities. As an emerging phenomenon, hierarchical utilization is still in the exploratory stage. Currently, China Tower Company has carried out large-scale practical applications in the field of communication base station backup, and some enterprises such as State Grid and BYD have also carried out experimental projects in energy storage and other fields.

Who is responsible for the recycling and utilization of power batteries

In February of this year, the Ministry of Industry and Information Technology and seven other ministries jointly issued the "Interim Measures for the Management of Recycling and Utilization of Power Batteries for New Energy Vehicles", which clarifies that the principle of power battery recycling and utilization management is the extended producer responsibility system, that is, automobile production enterprises bear the main responsibility for power battery recycling, and other related enterprises and users of new energy vehicles and power batteries fulfill corresponding responsibilities in the process of power battery recycling and utilization, ensuring the effective utilization and environmental protection disposal of power batteries.

Wang Pan, the project manager of the Data Resource Center Recycling Department, said:

Automobile production enterprises should establish and publicize service outlets for power battery recycling, improve recycling channels in various forms, and implement responsibility requirements for the release of relevant information on power battery recycling and utilization... Scrap car dismantling enterprises should follow relevant requirements to standardize the dismantling of new energy vehicles and hand over the dismantled batteries to recycling service outlets or qualified comprehensive utilization enterprises. As the producer of cascade utilization products, cascade utilization enterprises should track and trace the products, and be responsible for the recycling of the waste power batteries generated; Recycling should efficiently recycle and dispose of the final scrapped batteries in a harmless manner.

The destination of retired batteries requires solving these 7 questions to have an answer

The Interim Measures for the Management of Recycling and Utilization of New Energy Vehicle Power Batteries and the Interim Regulations on the Traceability Management of Recycling and Utilization of New Energy Vehicle Power Batteries were officially implemented on August 1 this year. Regarding the hot issues of common concern in the industry, a reporter from China Automotive News interviewed the research team of the Power Battery Recycling and Utilization Management Policy of the Data Resource Center of China Automotive Technology Research Center Co., Ltd. (hereinafter referred to as China Automotive Center). In the previous issue, we learned about the current situation of China's power battery recycling industry. Today, we will talk about what new problems need to be solved.

There are significant differences in the recycling and dismantling of traditional and new energy vehicles

The "heart" of new energy vehicles is different from traditional engines, and the recycling of power batteries is a "new issue". Disassembling retired batteries recklessly can cause significant safety accidents. In addition, improper operation during the recycling, dismantling, and processing process may lead to issues such as fire and explosion, electrolyte leakage, and organic waste gas emissions.

So, what qualifications are required for the recycling and dismantling of power batteries for new energy vehicles? Can companies engaged in traditional scrapped car recycling and dismantling dismantle electric vehicles?

Li Longhui, Minister of the Recycling and Utilization Department of the Data Resource Center, stated that scrap car recycling and dismantling enterprises should meet relevant requirements such as the "Technical Specifications for Scrap Car Recycling and Dismantling Enterprises" (GB22128) and the "Management Measures for Scrap Car Recycling" (State Council Decree No. 307). If there are revisions, substitutions, or new formulations involving standards and policies, they should meet the latest policies and standard requirements. In order to meet the development needs of new energy vehicles, relevant departments are currently revising the "Technical Specifications for Scrap Vehicle Recycling and Dismantling Enterprises" and the "Management Measures for Scrap Vehicle Recycling", and further studying the technical requirements for dismantling scrap electric vehicles and other related standards, to further clarify the admission and operation requirements for new energy vehicle recycling and dismantling enterprises.

In addition, enterprises engaged in comprehensive utilization of power batteries should meet the requirements of the "Industry Standard Conditions for Comprehensive Utilization of Waste Power Batteries for New Energy Vehicles".

The Ministry of Industry and Information Technology will strengthen supervision of comprehensive utilization enterprises through the release of a list of enterprises. In the later stage, standardized management such as certification will also be implemented for cascaded utilization battery products

Li Longhui added.

There are three existing issues regarding the recycling and utilization of power batteries

For the current problems in the recycling and utilization of power batteries, Chen Ping, Deputy Director of the Data Resource Center of China Automotive Center, believes that there are three:

Firstly, there is a lack of reserve in the industry for technologies such as rapid sorting and reorganization, performance evaluation, and residual value assessment for retired power batteries, and a lack of standardized support;

Secondly, the storage, transportation, and dismantling costs of retired power batteries are relatively high and have not yet formed a large-scale effect. Without incentive policy support and mature market-oriented mechanisms, the economic viability of power battery recycling is not high;

Thirdly, effective cooperation mechanisms have not yet been formed among enterprises in the fields of new energy vehicles, power batteries, and comprehensive utilization. The degree of resource sharing in the industrial chain in the construction of recycling service outlets is not high, and the construction of recycling channels is relatively slow.

Future direction of power battery management

At present, the management framework for the recycling and utilization of power batteries in China has been basically established and has achieved phased results. Recently, China has also launched pilot demonstrations for the recycling and utilization of new energy vehicle power batteries, supporting localities and enterprises with conditions to take the lead and carry out demonstrations in key areas of hierarchical utilization. Through pilot demonstrations, identify problems and seek solutions. Cultivate a group of benchmark enterprises for the recycling and utilization of power batteries, and explore the formation of a diversified recycling and utilization model with strong technical and economic feasibility and resource and environmental friendliness. For example, China Tower Company has conducted tests on the cascading utilization of power batteries and has built over 3000 test base stations in 12 provinces and cities, achieving good results.

Regarding the next direction of China's management of power battery recycling and utilization, Chen Ping believes that it mainly includes several points:

1. Improve supporting policies and measures

The government regulatory authorities will further study incentive policies and measures for the recycling and utilization of power batteries, effectively promoting the solution to the problem of recycling and utilization of power batteries for new energy vehicles; Establish a mechanism for comparing and verifying traceability information; And release the certification and standardized management measures for tiered utilization products, regulating the market for tiered utilization of retired batteries; Encourage social capital investment or establish industry funds, and explore market-oriented models such as residual value trading of power batteries.

2. Solidly carry out pilot work

Relevant departments in pilot areas should strengthen overall coordination and carry out centralized recycling and standardized comprehensive utilization of waste power batteries.

3. Strengthen technological breakthroughs and standard system construction

Guide automobile production enterprises, battery production enterprises, comprehensive utilization enterprises, etc. to deepen cooperation, promote industry university research and application cooperation, strengthen the research and development of common technologies and equipment such as efficient disassembly, residual value evaluation, hierarchical utilization, and efficient extraction of valuable metals for power batteries. At the same time, accelerate the research and project approval of standards related to the recycling and utilization of power batteries, leading the industry to accelerate technological upgrading.

4. Increase publicity and guidance

Strengthen the promotion of policies and regulations related to the recycling and utilization of power batteries, and promote the enhancement of corporate responsibility awareness. Fully leverage the role of the media, create a favorable social public opinion environment, actively guide the public to participate in the recycling and utilization of new energy vehicle power batteries, and standardize the transfer of power batteries.

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