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New energy vehicles are big, followed by the recycling of power batteries followed by a chorus of praise.

In recent years, with the continuous advancement of the “dual carbon policy”, the prospect of new energy vehicles is bright.

In the first quarter of 2023, the growth of new energy vehicles in Shenzhen alone showed an explosive growth, an increase of 127.6% year on year, which made an important contribution to the forefront of China’s new energy vehicle industry.

It can be seen that the hot new energy automobile industry situation is bright, and with this situation is changing is the power battery. Power battery is one of the three core components of new energy vehicles. Its performance directly determines the safety and driving range of the vehicle, and the cost accounts for about 40% of the vehicle. From the perspective of the service life of the power battery, the service life of the power lithium battery is generally 5-8 years, and the effective life is 4-6 years. According to the service life of the power battery for 4-6 years, the power battery produced in 2014 began to enter the retirement period in 2018. Starting from 2021, China will usher in the first peak period of power battery retirement. It is expected that by 2025, the cumulative decommissioning of China’s power battery will be close to 800,000 tons.

It can be seen that even now, the recycling of power batteries has entered a peak period, and will continue to enter a peak period. Upstream resource demand drives the growth of batteries, and with the growth of batteries, the recovery and utilization of batteries also ushered in the spring, forming such a cycle of mutual benefit circle.

So, such a lively power battery recycling market, although it has been in a relatively strong period, but the overall industry scale is large and chaotic, showing a small, scattered and chaotic situation.

In fact, our country is still in the status quo of a shortage of lithium resources, in view of scarce resources, a large number of recycled power battery raw materials have become hot commodities. After the first use of the power battery, the metal resources still have great recyclable benefits, which has a great help to solve the current energy scarcity situation. Therefore, there are many small and medium-sized enterprises that want to share a share in the resource recycling field in this field, but until now, it has not been lucky enough to become a strong enough leading enterprise.

The high price of raw materials has become a pain point in the development of the industrial chain, the value of battery recycling has been revalued, and new and old players have accelerated into the game to compete for the blue ocean of billions of markets. At present, the power battery recycling industry has entered a critical period. With the continuous expansion of white list enterprises and the gradual improvement of business models, the recycling market will be more standardized, and enterprises with sound recycling channels and the ability to form a commercial closed loop are expected to benefit for a long time.

So, do you have any better ideas for the future prospects of the power battery recycling industry?