At recent industry trade shows, the conversation has centered on the recycling of lithium-ion batteries from electric vehicles. Some call it “the next big opportunity,” while others describe it as a “hundred-billion-yuan ‘urban mine'”—implying that failing to enter this sector now is akin to having sold off a Beijing property twenty years ago. Is the lithium-ion battery recycling industry truly worth entering in 2023? Let’s take a closer look at the inner workings of this booming market.
The broader context is the explosive growth of the new energy vehicle (NEV) market. According to the China Association of Automobile Manufacturers, my country’s NEV sector saw continued rapid expansion in 2022, with sales reaching 6.887 million units—a year-on-year increase of 93.4%—and the installed capacity of power batteries essentially doubling. Projections indicate that by 2028, the volume of retired power batteries globally will reach 1.8 million tons, equivalent to 270 GWh. With such figures, the “hundred-billion-yuan industry” label for power battery recycling is well-deserved.
Power battery recycling offers immense commercial value. On one hand, lithium iron phosphate (LFP) batteries can be repurposed through “cascade utilization”—serving as energy storage systems or backup power for telecommunications base stations, or being dismantled into individual cells for use in products like the portable neck fans popular among young people. On the other hand, compared to the lead-acid batteries recycled years ago, today’s ternary lithium batteries hold significantly higher value; they contain scarce non-ferrous metals like lithium, cobalt, and nickel, all of which have recently seen soaring prices. As of July 2023, spot market prices for nickel averaged over 170,000 yuan per ton, while cobalt averaged over 320,000 yuan per ton.
However, beneath this veneer of prosperity lie hidden downsides. Driven by the prospect of huge profits, many recycling firms operate like small, unregulated workshops with inadequate safety measures. This leads to frequent accidents—including flash explosions, fires, and injuries—and the uncontrolled release of “black mass” (a powdery mixture containing heavy metals) during the recycling process. This material leaches into the soil and groundwater, causing severe environmental damage. Excessive cobalt intake causes cobalt poisoning, leading to symptoms such as nausea, vomiting, tinnitus, and sensorineural hearing loss; it can also trigger polycythemia, while severe cases may result in hypoxia, cyanosis, coma, or even death. Excessive nickel intake can lead to respiratory difficulties, chemical pneumonia, and pulmonary edema; consequently, any failure during the recycling process is tantamount to releasing toxins into the environment. Wang Zhenpo, a professor at the Beijing Institute of Technology and Director of the National Engineering Research Center for Electric Vehicles, has noted that a surge in retired power batteries is imminent, making the resolution of issues regarding resource recovery, recycling, and safety hazards a matter of great urgency.
Yusai Machinery’s lithium battery recycling equipment represents a new generation of technology independently developed to address pollution issues inherent in the lithium battery recycling process. It aims to overcome the limitations of existing technologies—specifically, poor separation performance and low recovery rates of battery powder during the crushing and sorting of spent lithium-ion batteries. By employing precise dismantling and screening techniques, the system achieves high resource recovery rates. Furthermore, it supports efficient, safe, and clean recycling, driving the industry’s transformation toward intelligent, green, and standardized operations, while bridging critical gaps in recycling equipment to foster the integrated development of the retired power battery recycling value chain.
