New energy vehicles are selling well. After the batteries are "retired", what should they do?
New energy vehicles have entered a "tuyere" period in the past two years, marked by rapid sales growth and increased adoption. As more electric cars hit the roads, a pressing question has emerged: what happens when these vehicles' power batteries reach the end of their life? During recent discussions, representatives from both committees emphasized the need to define clear responsibilities, establish a comprehensive battery recycling system, and support the development of a sustainable ecological civilization.
Status: The first batch of automotive power batteries is now entering their "retired" phase.
The government work report this year highlighted several key industries, including new energy vehicles, and extended tax incentives for purchasing them for another three years. This underscores the importance of the sector in China's economic and environmental strategy.
According to statistics, with strong policy support, China's new energy vehicle sales reached 777,000 in 2017, maintaining its top position globally for three consecutive years. Over 1.8 million units are now on the road, making up more than half of the world’s total.
The rapid expansion of the new energy vehicle market has driven significant growth in power battery production. While consumers are still concerned about range and charging times, the issue of battery degradation is becoming increasingly visible.
Wang Min, chairman of the Sichuan National People's Congress and head of Sichuan Qiyang Automobile Group, noted that power batteries typically last between five and eight years. This means that vehicles launched around 2012 are now beginning to enter their retirement phase.
Experts warn that improper recycling of lithium-ion batteries could lead to serious environmental issues, such as heavy metal pollution, alkali contamination, and dust emissions. To address this, seven ministries, including the Ministry of Industry and Information Technology, recently issued the "Interim Measures for the Management of Recycling and Utilization of Power Batteries for New Energy Vehicles."
Companies like Guoxuan Hi-Tech are already investing in recycling infrastructure, building dedicated lines to handle used batteries.
Unlike regular batteries, power batteries are large and complex, requiring advanced technology for safe and effective recycling. The Interim Measures emphasize the producer responsibility extension system, placing the main burden of recovery on automakers.
Chen Hong, a member of the National People's Congress and chairman of Shanghai Automotive Group, pointed out that China's current recycling policies are still underdeveloped. Managing the entire lifecycle of batteries from sale to disposal remains a major challenge for manufacturers.
To improve the situation, Chen suggested establishing new recycling qualifications and gradually phasing out non-compliant companies. Current industry efforts focus on cascade utilization and recycling, where retired batteries can still be used in energy storage or low-speed electric vehicles.
After being repurposed, these batteries are eventually sent for recycling, where valuable metals are extracted, and remaining waste is disposed of safely. Traceability systems are essential to ensure that waste batteries are handled by certified companies.
Chen also proposed integrating battery information into the social credit system to prevent illegal disassembly and resale. Additionally, part of the subsidies or purchase costs could be redirected to environmental funds to support research and lifecycle management.
Shou Ziqi, an NPC deputy and Secretary of the Shanghai Municipal Environmental Protection Bureau, recommended using market mechanisms to encourage closed-loop transactions, ensuring that recycled batteries not only benefit the environment but also generate economic value.
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