TIANJIN, June 5 (Xinhua) -- In the northern Chinese industrial city of Tianjin, a bustling workshop is bringing discarded electric vehicle batteries back to life through the combined expertise of skilled technicians and automated systems.

The scene exemplifies a massive business opportunity unfolding across China, as the world's largest electric vehicle market is set to turn battery waste from a pollution challenge into a key asset in its green revolution.

Positioned at the forefront of the country's sustainable economy, this startup, Tianjin Battery Technology, is targeting this rapidly expanding sector.

The market segment is on the cusp of substantial growth, as China continues to lead the world in the production and sales of new energy vehicles. Additionally, the rising number of end-of-life power batteries is expanding demand for sustainable solutions.

By the end of 2024, China had 31.4 million new energy vehicles, representing about 9 percent of its automobile fleet. Following the government's launch of trade-in policies, consumer interest in upgrading vehicles surged, which in turn further expanded the recycling market.

China's Ministry of Industry and Information Technology mandated that passenger vehicle manufacturers provide an 8-year or 120,000-kilometer warranty on core components such as batteries starting from 2016.

Market forecasts indicate that China's retired power batteries will hit 1.04 million tonnes in 2025 and may surge to 3.5 million tonnes by 2030.

UNLOCKING POTENTIALS

Ma Youwei, a 40-year-old equipment manager at the Tianjin firm, oversees the disassembly of battery packs and modules. As far as he is concerned, these seemingly "retired" batteries are treasure troves.

In his factory, some disassembled components are reused for second-hand vehicle repairs. Crushing batteries produces copper and aluminum, and the black powder is further refined into battery-grade lithium carbonate.

"In our words, we work to fully extract the value from the retired batteries and leave no potential untapped," said Ma, production material control manager of the factory's engineering equipment department.

With nearly 20 years of experience in digital electronics and battery manufacturing, he joined this role three years ago, driven by the industry's considerable potential.

Tianjin Battery Technology has reached an annual processing capacity of 10,000 tonnes, achieving a lithium recovery rate of over 90 percent.

"China heavily relies on imports for lithium, cobalt and nickel," said Ke Yanchun from China Resources Recycling Group Co., Ltd., a newly-established state-owned enterprise.

"Recycling retired power batteries effectively reduces the high dependency on imported resources in the upstream of China's new energy vehicle industry," said Ke.

TECH-DRIVEN

China's battery recycling sector is plagued by the presence of small, unregulated workshops. Industry leaders are leveraging technological innovation to boost efficiency and restructure the industry chain.

GEM, a Shenzhen-based publicly-listed company and a major Chinese battery recycler, employs a flexible intelligent dismantling system for accurate detection and sorting. Its recycling innovations include high- and low-temperature catalytic activation and ultra-precise lithium extraction, achieving over 90 percent lithium recovery.

The company also built a digital lifecycle management system to track batteries from recycling to utilization, supporting its dual-track business model.

It has established a circular economy industrial park in the Shenshan Special Cooperation Zone, which is just one kilometer from the production lines of BYD, the country's leading electric vehicle manufacturer.

Now, GEM has set up over 140 recycling sites nationwide and partnered with more than 750 vehicle and battery manufacturers and operators worldwide. In the first quarter of this year, it recycled 10,800 tonnes of power batteries, up 37 percent year on year.

In the Tianjin company, Ma and his colleagues have improved battery dismantling efficiency by 75 percent through modified tools. By using techniques like cutting and welding, they have transformed standard tools to meet the complex requirements of battery disassembly.

"This simple innovation has made a significant impact," Ma noted.

OVERSEAS EXPANSION

As China's share of the global electric vehicle market continues to grow, battery recycling companies are also expanding their international presence to meet local environmental regulations.

CATL, the world's largest battery manufacturer, plans to establish battery recycling operations in Europe, with the completion of its Hungarian re-manufacturing plant slated for 2026. This initiative is part of its efforts to address environmental concerns in battery production and disposal.

GEM has established seven power battery recycling centers including those in the Republic of Korea and Indonesia.

Gotion High-tech in Hefei, east China's Anhui Province, and Envision Greenwise in Hong Kong have reached a strategic cooperation agreement, planning to jointly build 100 recycling and after-sales service centers globally.

Also, Huayou Recycling in Jiaxing, Zhejiang Province, has entered a strategic partnership with SUEZ, one of the largest European environmental services corporations, to explore the French battery recycling market.