Overcoming “Power Battery Recycling Challenges” in the EV Era

Overcoming “Power Battery Recycling Challenges” is becoming a defining mission for sustainable mobility. As electric vehicle (EV) adoption soars worldwide, the volume of retired traction batteries is rising steeply. From Tairui’s vantage, understanding technical, regulatory, and business model hurdles is critical—and the roadmap to circular battery systems will shape the future of the auto industry.

1. Why Focus on Power Battery Recycling

1.1 The Emergence of Battery Retirement Phenomenon

With the rapid growth of new energy vehicles, an increasing number of traction batteries are approaching the end of their service life. According to CCTV reports, the comprehensive recycling and utilization of used batteries in China reached 825,000 tons in 2023. Additionally, by 2025, China is expected to have approximately 820,000 tons of batteries retiring from service; by 2028, this figure could exceed 4 million tons.

These figures highlight the increasingly serious issue of battery waste – unless the relevant recycling systems, reuse methods, and regulations can be rapidly improved.

1.2 The Roles of Sequential Use and Disassembly Recycling

The logic of recycling utilization can be divided into cascading reuse (secondary use) and disassembly recycling. When the battery’s capacity drops to approximately 80% of its original capacity, it may no longer be able to reliably supply power to the vehicle, but it can still be used for fixed equipment storage, backup power sources, or energy management systems.

Once the battery’s performance severely deteriorates and it is no longer suitable for these purposes, disassembling it becomes crucial: through chemical or physical methods, lithium, cobalt, nickel, and other key metals can be recovered. These recovered materials can then be reintroduced into the upstream supply chain, thereby reducing reliance on original mining.

2. The core challenges in battery recycling

2.1 Weak Regulation and Dispersed Supervision

A key obstacle lies in the lack of unified regulation and standard systems across different regions. The report by CCTV indicates that many used batteries are ultimately handled by small and un-certified workshops, which carry out rough dismantling – cutting the battery units and extracting components – resulting in environmental hazards. These “backward operations” lead to a decrease in recovery rates, pose safety risks, and cause pollution.

Because these small enterprises usually offer lower prices – providing high immediate returns – they attract more battery suppliers, which has impacted the regular recycling enterprises. The article points out that as of 2023, the regular recycling rate of battery power in China is still below 25%.

2.2 Complexity of Technology and Materials

There are differences in the chemical composition (such as nickel-manganese-cobalt type, lithium-iron phosphate type), packaging form, and control of electronic devices in battery systems. To efficiently extract high-purity lithium, cobalt, nickel, and rare earth elements, advanced hydrometallurgy, pyrometallurgy, or a combined process is required. Even so, the separation of each component (electrodes, binders, conductive additives) is technically challenging.

Maintaining production, avoiding cross-contamination, and reducing waste of input energy or reagents are always challenges.

2.3 Economic Mismatch and Cost Pressures

Due to the fact that dismantling and reprocessing involve costs in terms of funds, manpower, environmental handling, and logistics, the cost of recycling batteries may be higher than the market value of the recovered metals – especially when prices are low.

Some smaller-scale “informal” recyclers who invest less in environmental and quality control may purchase used batteries at lower prices, thereby depressing the profits of formal recyclers. This phenomenon has created a situation of “low-cost competitors”, hindering the formation of a healthy recycling system.

2.4 Insufficient Collection Channels and Battery Traceability Issues

Even though the demand for recycling is high, many regions still lack adequate collection networks, especially in underserved areas or rural areas. Moreover, due to the lack of battery tracking or registration systems, some batteries end up in unregulated channels.

This report from CCTV points out that China has currently cultivated over 148 certified enterprises and established over 10,000 battery recycling service outlets in 327 prefecture-level administrative regions. However, the industry still faces many problems in terms of standardization, law enforcement, and long-term mechanisms.

3. Strategies for Solving Recycling Challenges

3.1 Strengthening regulations, standards and enforcement

The government must raise the standards: implement clear licensing systems, quality standards, environmental safeguard measures, and impose penalties for violations. The updated industry norms (revised from the 2019 version) in 2024 set higher requirements for comprehensive utilization capabilities, waste treatment, and corporate responsibilities.

Standardization of battery design, label marking, modularization, and recyclability is also crucial – this ensures that batteries from different original equipment manufacturers can be uniformly tracked, disassembled, and processed.

3.2 Building resilient warehousing and logistics infrastructure

Key steps include:

Setting up battery recycling points at dealerships, service centers, and logistics centers

Establishing reverse logistics to safely transport batteries

Creating a digital battery tracking system that can record the source, chemical composition, capacity, and usage period of the batteries

Encouraging the establishment of producer responsibility models, in which automobile manufacturers or battery companies must ensure the disposal of vehicle end-of-life issues.

3.3 Innovation in Recycling Technologies

To reduce costs and increase production, recycling enterprises should develop or adopt the following measures:

Direct recycling method – a method for regenerating electrodes without complete decomposition

Selective solvent extraction or electrochemical methods for targeted separation

Green wet metallurgy technology, using fewer reagents and with lower emissions.

Automated disassembly using robotics, vision systems, and mechanical precision for safer, scalable operations

3.4 Integrating circular supply chains

Recyclers and OEMs should collaborate to feed recovered metals back into new battery manufacturing. By pledging to use a proportion of recycled materials in new batteries, automakers close the loop and enhance supply resilience.

Incentive mechanisms—such as tax credits, recycling subsidies, or tradable environmental credits—can help offset upfront costs and encourage market participation.

4. Tairui’s Role: Embedding Recycling into Vehicle Strategy

4.1 Designing for recyclability

As a company engaged in full vehicles, special-purpose vehicles, classic bodies, and auto parts, Tairui can incorporate recycling-friendly design principles from the start—modular battery packs, standardized interfaces, labeling, and accessible disassembly points.

4.2 Leading or collaborating in battery take-back networks

Tairui can join or initiate alliances with recycling firms, battery producers, and logistics providers to establish end-of-life collection systems. By doing so, the recovered materials can flow back into Tairui’s supply chain, reducing risk from commodity volatility.

4.3 Investing in recycling R&D

Tairui can support or co-develop technologies in direct recycling, electrochemical recovery, or smart disassembly. Partnering with universities, labs, or battery firms can accelerate breakthroughs.

4.4 Marketing sustainability and circular credentials

By promoting that its EVs incorporate recycled materials and formal battery stewardship, Tairui can appeal to environmentally conscious buyers—especially in Western markets where ESG and traceability are valued differentiators.

5. Impacts on the Global EV Ecosystem

5.1 Transitioning to a circular mobility paradigm

“Linear build → drive → discard” models must evolve to circular mobility: design, use, reuse, recycle. Battery recycling will no longer be a side process, but an integral element of the value chain.

5.2 Mitigating upstream supply risk

By reclaiming lithium, cobalt, nickel, and other metals domestically, automakers and nations can reduce exposure to geopolitical supply disruptions, mining constraints, and price swings.

5.3 Building trust through transparency

Consumers, regulators, and investors demand traceability, accountability, and environmental responsibility. A robust recycling system becomes part of an EV brand’s core narrative, not a peripheral afterthought.

5.4 Spurring innovation in battery chemistry

As recycling becomes a strategic pillar, battery technologies will evolve to favor chemistries and designs that are easier to recycle. Companies that lead that shift gain advantage.

Conclusion

In conclusion, Overcoming “Power Battery Recycling Challenges” is not an academic exercise—it’s a necessary foundation for the sustainable scaling of electric mobility. The obstacles of regulation, technology, economics, and logistics are significant, but surmountable through cross-sector coordination, innovation, and robust policy support.

From Tairui’s perspective, recycling must be integrated into vehicle development, supply chain strategies, and brand image. By designing for disassembly, collaborating on the development of recycling systems, investing in recycling technologies, and promoting the concept of circular economy, Terry is committed to becoming a pioneering force in shaping the resilient and sustainable future of electric vehicles.