A brief analysis of the future trend of lithium battery recycling industry in 2018

- Aug 27, 2018 -

With the shortage of global oil, the continuous rise of oil price, the increasing pressure of environmental protection and the adjustment of domestic energy structure, the new energy automobile has gradually become the development trend of China and the world's automobile industry. The rapid expansion of China's new energy automobile market has been caused by the increasing policy tilt, the rush of large automobile enterprises and the increasing awareness of consumers on environmental protection. In 2009, the intensive support policy opened the fast track for the growth of China's new energy vehicles. In 2011, the industry entered the industrialization stage.

New energy vehicles are divided into upstream raw materials, mid-stream components, and downstream applications. Can be found that the middle reaches area of the battery, motor, electric control (that is, we often say "SanDian") constitutes the core of new energy vehicles, different from traditional engine, they formed the "electric" powertrain, lithium batteries in the production of new energy vehicles plays an important role in the process, the domestic new energy automobile production record high power lithium battery industry explosive growth.

The lithium-ion trams used in China's new energy vehicles are designed to last about three years due to technical and frequency limitations, and need to be replaced three years later. Experts believe that 2018 is the first year for the recovery of lithium batteries in new-energy automobiles, and China's new-energy automobile power batteries will enter a large-scale retirement stage.

There are two kinds of disposal methods in the retired lithium battery industry, respectively recycling and recycling. Reuse can also be divided into the replacement use of new energy vehicles with lower energy consumption, the use of large energy storage equipment, and the use of other low-energy lithium batteries. Recycling is the dismantling and recycling of lithium batteries.

The reuse and recycling of retired lithium batteries will bring huge economic revenue to the new energy market. According to the production and marketing data of China automobile association at the end of 2017, it is estimated that the retired power lithium batteries will reach 11.09GWh in 2018. Among them, the recycling revenue of lithium-ion batteries is expected to be 44,200 yuan/ton, and there will be a market of billions of lithium batteries in the future.

At the end of 2017, the ministry of finance ended the three-year subsidy policy for new energy vehicles. The new energy automobile industry will return to the normal operation track. It will be an important direction to improve the technology content, extend the battery life and reduce costs and increase efficiency in the future. Experts believe that as the price of raw materials for lithium-ion batteries gradually rises, the recycling of lithium batteries will effectively solve the problem of the high manufacturing cost of lithium batteries.

After years of use and charging, the internal structure of lithium battery has changed. With the increase of years, the combustion risk and leakage risk of lithium battery have increased year by year. Meanwhile, for the government, avoiding environmental pollution and resource waste is the significance of lithium battery recycling. For the industry, lithium battery recycling is an indispensable part of the improvement of the whole life cycle of the new energy automobile industry, forming a closed loop of the industry chain from production, sales, operation, after-sales service to recycling and reuse. For the battery production enterprises, there is a business opportunity in power battery recycling and a positive impact on the corporate social image.

Before the suspension of subsidies for new-energy vehicles at the end of 2017, a number of national policies on new-energy vehicle recycling have been issued. In the future, the government is the biggest supporter of the new-energy vehicle recycling industry, and the industry will have better development.

With the popularization of new energy vehicles in China, environmental pressure increases year by year, lithium battery raw material prices are rising, recycling and resource recovery technology breakthrough, the expert thinks, from 2018 to 2023, lithium battery recycling market amounting to about 13 billion, 2018 will be a bumper year lithium battery recycling, is also very important for a year, recycling and resource recovery of dismantling will make the raw material of lithium-ion batteries to achieve the balance between supply and demand market prices will also tend to be more rational; It would also help ease the cost pressures of the Treasury's suspension of subsidies for new energy vehicles.