The Urgency to Regulate Informal EV Battery Recycling in China

Hetong Wang; Peng Wang; Jiashuo Li; Laixiang Sun; Kuishuang Feng

doi:10.1016/j.eng.2026.03.019

Engineering ›› :202603019 DOI: 10.1016/j.eng.2026.03.019

research-article

The Urgency to Regulate Informal EV Battery Recycling in China

Author information +

History +

PDF (1092KB)

Abstract

China’s electric vehicle (EV) boom will generate an unprecedented volume of battery waste, yet over 70% of end-of-life EV batteries currently ﬂow to informal recyclers operating outside regulated channels. Low market entry barriers, high proﬁt margins, and weak regulatory enforcement enable these informal oper- ators to outcompete licensed enterprises, posing a major obstacle to China’s sustainable energy transi- tion. By coupling the Global Change Analysis Model with dynamic material ﬂow analysis, we project that retired EV battery volumes will reach 22.39 million tons by 2040 under the carbon neutrality scenar- io, representing 112-fold increases from the 2020 level. To address this escalating crisis, we urge coordi- nated actions among all stakeholders, including legislating extended producer responsibility, classifying end-of-life batteries as hazardous waste, raising market entry thresholds, supporting research and devel- opment for low-cost recycling technologies, and implementing ownership-based classiﬁcation of retired batteries.

Keywords

Electric vehicle battery / Informal recycling / Waste management / Policy regulation

Cite this article

Download citation ▾

Hetong Wang, Peng Wang, Jiashuo Li, Laixiang Sun, Kuishuang Feng. The Urgency to Regulate Informal EV Battery Recycling in China. Engineering 202603019 DOI:10.1016/j.eng.2026.03.019

登录浏览全文

4963

注册一个新账户忘记密码

References

Publishing order | Descend order by publishing year | Descend order by cited within

[1]	Normile D. China’s bold climate pledge earns praise—but is it feasible? Science 2020; 370(6512):17-8 .

[2]	Global electric car sales, 2014—2024. Report. Paris: International Energy Agency; 2025.

[3]	Xu C , Dai Q , Gaines L , Hu M , Tukker A , Steubing B . Future material demand for automotive lithium—based batteries. Commun Mater 2020;1(1):1-10 .

[4]	Tao Y , Rahn CD , Archer LA , You F . Second life and recycling: energy and environmental sustainability perspectives for high—performance lithium—ion batteries. Sci Adv 2021; 7(45):eabi7633 .

[5]	Wang Z. Annual report on the big data of new energy vehicle in China (2021). Beijing: China Machine Press; 2021 .

[6]	Niu Y. How can China address its EV battery—recycling challenge? Report. London: Dialogue Earth; 2023 .

[7]	Market prospect analysis of lithium—ion battery recycling in China in 2020. Report. Guangzhou: Green Globe International Inc.; 2020. Chinese.

[8]	White paper on the development of China’s waste lithium—ion battery recycling, dismantling and echelon utilization industry (2023). Report. Beijing: EVTank; 2023. Chinese.

[9]

Ye C , Tao W . Quan Nan Procuratorate: addressing environmental pollution through the rule of law [Internet]. Nanchang: Jiangxi Provincial CPC Committee Political and Legal Affairs Commission;2024 Jun 10 [cited 2025 Jul 23]. Available from: https://www.jxzfw.gov.cn/2024/0710/2024071058441.html . Chinese.

[10]	Tian X , Peng F , Chen X , Wei G , Gan Y , Zhang Z , et al. Management of spent power batteries in China: progress, policies, and challenges. Renew Sustain Energy Rev 2025; 219:115797 .

[11]	China lithium battery recycling and reuse market prospects analysis report in 2022. Report. Guangzhou: Green Globe International Inc.; 2022. Chinese.

[12]

Implementing the spirit of the State Council executive meeting to promote high—quality development of the new energy vehicle industry [Internet]. Beijing: Ministry of Industry and Information Technology of the People’s Republic of China;2023 Jun 21 [cited 2025 Jul 23]. Available from: https://www.miit.gov.cn/xwdt/gxdt/ldhd/art/2023/art_643c641ae55849eabd329f8311bc964d.html . Chinese.

[13]	He W , Zhu M , Fan Z , Wu W , Zhao S , Cheng H . New energy vehicle power battery recycling difﬁculties need to be cracked. Report. Beijing: Development Research Center of the State Council;2023. Chinese.

[14]	Liu M , Liu W , Zhang M , Pan X , Zhang Q , Zhang M , et al. Analysis of the potential resource, environmental and economic impacts of EV battery and waste battery regulations on China’s lithium—ion battery industry. Resour Conserv Recycl 2025; 219:108314 .

[15]	Zeng A , Chen W , Rasmussen K , Zhu X , Lundhaug M , Müller D , et al. Battery technology and recycling alone will not save the electric mobility transition from future cobalt shortages. Nat Commun 2022; 12:1 .

[16]	Information of EV battery collection service outlets [Internet]. Beijing: Ministry of Industry and Information Technology of the People’s Republic of China; [cited 2025 Jul 23]. Available from: https://wap.miit.gov.cn/datainfo/zysjk/xnyqcdlxdchsfwwdxx/index.html . Chinese.

[17]

The chaos of power battery recycling: how hidden small workshops compete against mainstream players [Internet]. Fuzhou: Fujian Provincial Department of Ministry of Industry and Information Technology;2024 Jul 4 [cited 2025 Jul 23]. Available from: https://gxt.fujian.gov.cn/zwgk/xw/hydt/xydt/202407/t20240704_6478914.htm . Chinese.

[18]	Wang Y , Fan R , Chen R , Xie X , Ke C . Exploring the coevolution dynamics of residents and recyclers in electric vehicle battery recycling decisions on the two—layer heterogeneous complex networks. Appl Energy 2025; 382:125235 .

[19]

List of enterprises in line with the industrial standards for comprehensive utilization of scrap steel, waste paper, waste plastics, waste tires, waste power batteries of new energy vehicles in 2022 [Internet]. Beijing: Ministry of Industry and Information Technology of the People’s Republic of China;2022 Dec 7 [cited 2025 Jul 23]. Available from: https://www.miit.gov.cn/zwgk/zcwj/wjfb/gg/art/2022/art_751a83c5cae9443087ecfc5cb16e3be5.html . Chinese.

[20]

List of enterprises in line with industry standards for comprehensive utilization of waste power batteries of new energy vehicles (the ﬁrst batch) [Internet]. Beijing: Ministry of Industry and Information Technology of the People’s Republic of China;2018 Sep 3 [cited 2025 Jul 23]. Available from: https://www.miit.gov.cn/jgsj/jns/wjfb/art/2020/art_4301180723a44035b23dcb19b6637330.html . Chinese.

[21]	List of enterprises in line with the industry standard for comprehensive utilization of scrap iron and steel, waste plastics, waste tires and waste power batteries of new energy vehicles to be announced. Report. Beijing: China Association of Automobile Manufacturers; 2020. Chinese.

[22]

Announcement No.40, 2021 of the Ministry of Industry and Information Technology of the People’s Republic of China [Internet]. Beijing: Ministry of Industry and Information Technology of the People’s Republic of China;2021 Dec 6 [cited 2025 Jul 23]. Available from: https://www.miit.gov.cn/jgsj/jns/zyjy/art/2021/art_dc43c3657da9414b86faa15735885941.html . Chinese.

[23]	List of enterprises in line with the industry speciﬁcation conditions for comprehensive utilization of waste batteries of new energy vehicles. Report. Beijing: Ministry of Industry and Information Technology of the People’s Republic of China; 2023. Chinese.

[24]	Power battery life cycle value chain business. Report. Shenzhen: GEM Co., Ltd.; 2021. Chinese.

[25]	China lithium—ion battery industry development white paper. Report. Beijing: EVTank; 2024. Chinese.

[26]	Liu Z. Battery recycling series (part II): cost and proﬁt breakdown model for battery recycling. Report. Beijing: CINDA Securities; 2022. Chinese.

[27]	Morse I. A dead battery dilemma. Science 2021; 372(6544):781-3 .

[28]	Who’s driving it? An orgy of illegal power battery recycling. Report. Beijing: D1EV; 2020. Chinese.

[29]	Feng X , Ouyang M , Liu X , Lu L , Xia Y , He X . Thermal runaway mechanism of lithium ion battery for electric vehicles: a review. Energy Storage Mater 2018; 10:246—67 .

[30]	Investigation Report on the October 18 Used Battery Explosion Incident at Hunan Jinkai Recycling Technology Co., Ltd., Leiyang City. Report. Hengyang: People’s Government of Hengyang; 2024. Chinese.

[31]	Lebedeva NP , Boon—Brett L . Considerations on the chemical toxicity of contemporary Li—ion battery electrolytes and their components. J Electrochem Soc 2016; 163(6):A821 .

[32]	Major rear—end collision on Beijing—Shanghai expressway in Huai’an: why have new energy transport vehicles become moving bombs? [Internet]. Fujian:SOHU; 2025 Jul 17 [cited 2025 Jul 23]. Available from: https://roll.sohu.com/a/914909753_122456338 . Chinese.

[33]	Wang S , Yu J . A comparative life cycle assessment on lithium—ion battery: case study on electric vehicle battery in China considering battery evolution. Waste Manag Res 2021; 39(1):156-64 .

[34]	Chan KH , Anawati J , Malik M , Azimi G . Closed—loop recycling of lithium, cobalt, nickel, and manganese from waste lithium—ion batteries of electric vehicles. ACS Sustain Chem Eng 2021; 9(12):4398-410 .

[35]	Christensen PA , Anderson PA , Harper GD , Lambert SM , Mrozik W , Rajaeifar MA , et al. Risk management over the life cycle of lithium—ion batteries in electric vehicles. Renew Sustain Energy Rev 2021; 148:111240 .

[36]	Amusa HK , Sadiq M , Alam G , Alam R , Siefan A , Ibrahim H , et al. Electric vehicle batteries waste management and recycling challenges: a comprehensive review of green technologies and future prospects. J Mater Cycle Waste Manag 2024; 26(4):1959-78 .

[37]	Tian X , Peng F , Xie J , Liu Y . Agent—based modeling for an end—of—life power battery cross—regional recycling system and subregional policy analysis: a case study in China. J Clean Prod 2024; 441:141054 .

[38]	Parviziomran E , Elliot V. Barriers to circular economy: insights from a small electric vehicle battery manufacturer. J Purch Suppl Manag 2024; 30 (2):100905 .

[39]	Lin C. Lithium carbonate prices continue to fall: manufacturers are selling at low prices, and distributors no longer hoard the commodity. Report. Shanghai: Yicai; 2023. Chinese.

[40]	Chigbu BI , Umejesi I . Unlocking economic and environmental gains through lithium—ion battery recycling for electric vehicles. Resources 2024; 13(12):163 .

[41]	He L , Sun B . Exploring the EPR system for power battery recycling from a supply—side perspective: an evolutionary game analysis. Waste Manag 2022; 140:204-12 .

[42]	Tracking of the chaos in the disposal of end—of—life vehicles. Report. Beijing: Workers’ Daily; 2026. Chinese.

[43]	Prices change every day! CATL/BYD/Gotion and other competing for 100 billion market. Report. Beijing: SINA Corporation; 2022. Chinese.

[44]	Tang Y , Zhang Q , Liu B , Li Y , Ni R , Wang Y . What inﬂuences residents’ intention to participate in the electric vehicle battery recycling? Evidence from China. Energy 2023; 276:127563 .

[45]	Interim measures for the administration of recycling and utilization of power batteries of new energy vehicles (draft for soliciting opinions). Report. Beijing: China Association of Circular Economy; 2016. Chinese.

[46]

Interim provisions on traceability management for recycling and utilization of new energy vehicle power battery [Internet]. Beijing: Ministry of Industry and Information Technology of the People’s Republic of China;2018 Jul 2 [cited 2025 Jul 23]. Available from: https://wap.miit.gov.cn/jgsj/jns/wjfb/art/2020/art_b56b23d884934687aca9b346cafecbc4.html . Chinese.

[47]

Jingmen City to support the new energy vehicle waste power battery comprehensive utilization of industrial high—quality development policy measures [Internet]. Jingmen: Jingmen Municipal People’s Government;2023 Nov 6 [cited 2025 Jul 23]. Available from: https://www.jingmen.gov.cn/art/2023/11/6/art_6607_15891.html . Chinese.

[48]	Hangzhou new energy vehicle industry policy compilation. Report. Hangzhou: Hangzhou Municipal Bureau of Economy and Informatization; 2023. Chinese.

[49]	Guangxi Zhuang Autonomous Region new energy vehicle promotion and application three—year action ﬁnancial subsidy implementation rules notice. Report. Nanning: Guangxi Zhuang Autonomous Region Development and Reform Commission; 2022. Chinese.

[50]	Hefei Municipal People’s Government Ofﬁce on the issuance of a number of policies to promote the high—quality development of new energy vehicles to help win the battle to defend the blue sky notice. Report. Hefei: Hefei Municipal Finance Bureau; 2021. Chinese.

[51]	Large—scale decommissioning of power batteries, recycling industry chain standardization and development to be a breakthrough. Report. Shenzhen: Shenzhen Securities Times Co., Ltd.; 2022. Chinese.

[52]	Zhou J. Nine enterprises jointly voice ‘‘boycott of informal workshops”, the ﬁrst sample of closed—loop battery recycling on the ground. Report. Beijing: EEO; 2021. Chinese.

[53]	National hazardous waste list [Internet]. Beijing: Ministry of Justice of the People’s Republic of China.;2026 Sep 21 [cited 2025 Jul 23]. Available from: http://www.moj.gov.cn/pub/sfbgw/ﬂfggz/ﬂfggzbmgz/201609/t20160921_374188.html . Chinese.

[54]	Solid waste pollution prevention and control law of People’s Republic of China [Internet]. Beijing: Ministry of Ecology and Environment of the People’s Republic of China;2020 Apr 30 [cited 2025 Jul 23]. Available from: https://www.mee.gov.cn/ywgz/fgbz/ﬂ/202004/t20200430_777580.shtml . Chinese.

[55]	Regulations on the safe management of hazardous chemicals [Internet]. Beijing: Ministry of Public Security of the People’s Republic of China;2014 Jun 23 [cited 2025 Jul 23]. Available from: https://www.mps.gov.cn/n2255079/n4242954/n4500645/n4500649/c4504321/content.html . Chinese.

[56]	Sun M , Yang X , Huisingh D , Wang R , Wang Y . Consumer behavior and perspectives concerning spent household battery collection and recycling in China: a case study. J Clean Prod 2015; 107:775-85 .