China's EV Battery Recycling Goes Global Amid Challenges and Opportunities

The global new energy vehicle (NEV) industry is developing rapidly, driving continuous growth in installed capacity of power batteries. Retired batteries are now entering a phase of large-scale release, with global retirement volumes expected to exceed 2 million metric tons by 2030. Against this backdrop, China’s NEV industry is accelerating its international expansion in power battery recycling. Recently, an international symposium on the coordinated development of the power battery recycling industry chain was held in Beijing, bringing together representatives from industry, trade associations, research institutions, automakers, and battery manufacturing and recycling enterprises. Participants jointly explored the global outlook for power battery recycling and Chinese companies’ overseas strategies, aiming to promote the establishment of a global circular system for power batteries. China’s current regulatory framework for power battery recycling, issued in 2018, has become inadequate for today’s development needs. A revised version, set to take effect in 2026, will comprehensively optimize the recycling management system and enhance its standardization and institutionalization. Meanwhile, the European Union’s new Battery Regulation establishes a comprehensive lifecycle management framework for batteries. The implementation of its upcoming key secondary legislation will significantly impact the global supply chain and serve as a reference for building international regulatory frameworks. There is considerable potential for deeper Sino-European cooperation, particularly in aligning standards. China possesses a relatively mature power battery recycling industry chain and holds advantages in technology and supporting capabilities, positioning it to become a significant complement to the EU market. However, international expansion still faces multiple challenges. For instance, emerging markets like India are in the early stages of lithium-ion battery recycling, grappling with underdeveloped reverse logistics systems, absent testing and verification mechanisms, and insufficient policy enforcement and regulatory capacity. Chinese enterprises must also navigate industry-specific international compliance requirements. To achieve sustainable development, Chinese companies need to explore efficient, replicable overseas business models based on cost reduction and efficiency gains, foster industrial chain collaboration, and tailor differentiated strategies to local market conditions while integrating diverse technological pathways to improve resource utilization efficiency. Recycled materials generated from power battery recycling hold significant strategic value, a role that will continue to grow. The industry urgently needs to strengthen recycling systems, deepen international cooperation, and advance global power battery recycling toward greater efficiency and sustainability.