2018 lithium battery recycling market will usher in the outbreak

Recently, Guojin Securities released the “Research Report on Power Lithium Battery Recycling Industry”, stating that with the continued growth in the number of new energy vehicles, the demand associated with the large-scale power lithium battery will be the industrial opportunity for lithium battery recycling and ladder utilization.

Recently, Guojin Securities released the "Power lithium battery recycling industry research report," saying that with the continued growth in the number of new energy vehicles, with the huge demand for lithium power batteries will be accompanied by lithium battery recycling and ladder utilization of the industry opportunities, The development of the power lithium battery recovery and cascade utilization industry is both necessary (to avoid environmental pollution and waste of resources), and it also has considerable economic benefits.

The demand for power lithium batteries and the amount of scrapped batteries continue to grow. Statistics show that in 2015 China's total lithium battery production 47.13Gwh, of which power battery output 16.9Gwh, accounting for 36.07%; consumption of lithium battery output 23.69Gwh, accounting for 50.26%; storage lithium battery output 1.73Gwh, accounting for 3.67 %.

The "Report" estimates that by 2020, the demand for power lithium batteries will reach 125Gwh, and the scrapped amount will reach 32.2Gwh, about 500,000 tons; by 2023, the scrapped amount will reach 101Gwh, about 1.16 million tons.

“Lithium battery recycling and downstream utilization will generate considerable economic benefits and investment opportunities.” The “Report” states that “The positive electrode, negative electrode, separator, electrolyte and other materials that make up lithium-ion batteries contain a large amount of valuable metals. The battery cathode material contains different valuable metal components, of which the highest potential value includes cobalt, lithium, nickel, etc."

For example, the average content of lithium in the ternary battery is 1.9%, nickel 12.1%, and cobalt 2.3%; in addition, the copper and aluminum parts account for 13.3% and 12.7%, respectively, and if it can be reasonably recycled, it will become A major source of revenue generation and cost reduction.

At present, the supply and demand imbalance of battery metal material resources is gradually emerging. As the downstream demand for new energy vehicles is gradually clarified, domestic power battery manufacturers have expanded their production capacity from 2016 to 2017, especially the expansion of triple-batteries, further increasing the demand for cobalt. “Therefore, it is increasingly economical to recycle cobalt from used batteries.” The “Report” predicts that the market size created by the recovery of cobalt, nickel, manganese, lithium, and metals such as iron and aluminum from used power lithium batteries will The outbreak will begin in 2018, reaching 5.2 billion yuan, reaching 13.6 billion yuan in 2020 and exceeding 30 billion yuan in 2023.

For enterprises, the recycling of power batteries contains huge business opportunities. After recycling, it can save raw material costs for battery manufacturers. In addition, the recycling of power batteries is closely related to the government’s efforts to build a low-carbon economy and an environment-friendly society.

The "Report" also pointed out that at present, China's power battery recycling processing technology is relatively mature, but the management is relatively backward, impeding the development of the power battery recycling industry. Mainly manifested in: the recovery network is not perfect, the recovery network is mainly composed of small and medium recycling companies, it is difficult to get an effective recovery; recycling companies are small, the process level is not perfect, it is difficult to ensure the efficiency of resource recovery; there is no business license illegally engaged in waste Power battery recycling brings security and environmental concerns.

Despite the existence of resistance, China has explicitly adopted a system of extended producer responsibility. With the continuous improvement of policies, the industry is gradually becoming more standardized. “As the production and sales volume of new energy vehicles continue to increase, the issue of recycling of electric vehicles for power batteries will become more and more prominent. National and local governments have successively introduced policies to accelerate the process of building a benign industrial ecosystem,” the report said.

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