Recycling EV Batteries: Building a Circular Economy in China
Firms turn waste into opportunity as EV adoption surges.
✍️ By Dr. Alan Hughes | Telecoms & Space Policy Analyst
China’s electric vehicle boom has created a new challenge: what to do with millions of used lithium-ion batteries. By 2025, recycling has become a critical industry, with companies turning end-of-life batteries into valuable resources for a circular economy.
Battery recycling firms like GEM and CATL are leading the way, building large-scale plants that extract lithium, nickel, and cobalt from discarded packs. These materials are then reused in new batteries, cutting costs and reducing dependence on foreign raw materials.
Government policies have accelerated the trend. Automakers must now ensure traceability for every battery, from production to recycling. Pilot projects in provinces like Hunan and Jiangsu test automated recycling lines capable of handling thousands of units daily.
The effort also addresses environmental concerns. Proper disposal prevents toxic leaks and reduces mining’s ecological footprint. However, challenges remain in scaling recycling efficiently and profitably.
China’s leadership in EV recycling is a reminder that clean energy transitions don’t end with production—they depend equally on sustainable reuse.
