Power battery recovery responsible body determines that improving resource utilization is still the key

On February 26, seven ministries and commissions including the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the Ministry of Environmental Protection jointly issued the "Interim Measures for the Management of Recycling and Utilization of New Energy Vehicle Power Battery" (hereinafter referred to as "Provisional Measures"), clarifying that automobile manufacturers should establish power battery recovery channels. Responsible for the recycling of used energy storage batteries generated after the use of new energy vehicles and scrapped. With the continuous growth of sales of new energy vehicles, the introduction of "temporary measures" in the emerging markets for power battery recycling began to regulate the development of the market in a timely manner, but the dependence of power batteries on scarce resources, how to effectively use power batteries is still an energy-saving and environmental protection industry. The fundamentals.

Automobile companies become the main responsibility of battery recycling responsibility

As we all know, starting in 2009, China officially began to promote new energy vehicles. According to the 5-8 year lifespan of new energy vehicle power batteries, the first batch of new energy vehicles will come to an end this year.

According to statistics from the China Association of Automobile Manufacturers, sales of new energy vehicles in 2015 were 331,100; in 2016, it was 507,000, and in 2017 it increased to 720,000. According to the plan, at the end of 2020, 5 million new energy vehicles will be cumulatively promoted. According to forecast, from 2018 to 2020, the cumulative scrapped battery will reach 120,000-200,000 tons. By 2025, the annual volume of power battery waste will reach a scale of 350,000 tons.

With the rapid development of the new energy automotive industry, the standard management of power battery recycling is imminent. As the core components of new energy vehicles, the power battery contains rare metal resources such as nickel and cobalt. Improper handling can easily cause serious environmental pollution. The "Provisional Measures" stipulates that automobile manufacturers should establish a power battery recovery channel to be responsible for the recovery of used energy batteries generated after the use of new energy vehicles and after being scrapped.

Obviously, the "Provisional Measures" will use auto companies as the main responsibility for battery recycling. It also stipulates that the recycling service outlets should follow the principle of facilitating handover, collection, storage, and transportation, and comply with local urban planning and relevant regulations of the fire protection, environmental protection, and security departments, and provide prompt information in prominent locations on business premises. Encourage auto manufacturers to adopt a variety of ways to provide convenient and efficient recycling services for owners of new energy vehicles, and to increase their enthusiasm for the transfer of used power batteries through measures such as buy-backs, trade-in replacements, and subsidies.

For the promulgation of the “Provisional Measures”, Zhao Changjiang, general manager of BYD Auto Sales Co., Ltd., stated to the headlining app that the impact of the policy on the company is not significant, as BYD's new energy vehicles all use their own batteries, so they are recycling power batteries. The business already has a corresponding plan.

Except BYD, other automotive companies' new energy vehicle power battery sources are purchased from power battery manufacturers. Therefore, after the waste power battery is recovered, it is finally handed over to the power battery supplier for disposal. Before the introduction of the policy, the power battery recycling market was turbulent. Except for auto companies, power battery companies, and battery recycling enterprises, many private or small businesses also flooded the battery recycling market, and the flow of used power batteries was not monitored.

As one of the few BNP Group companies with power battery recovery expertise and qualifications, its vice president Yu Haijun said to the headline APP: “The core of this approach is to hope that OEMs will take the lead in the responsibility for power battery recycling and hope that the OEMs will unite Recycling companies, battery manufacturers, and related industry chain companies will work together on recycling.” He believes that after clarifying the main responsibility, it is beneficial to recycling companies like Bumper Group, which is more conducive to face-to-face interactions with OEMs. The details of the conversation and communication recovery. “It is clearer and clearer to government regulators to control the flow of waste power batteries through the main plant.”

Recycling rare resources is still the key

With the retreat of fiscal subsidies, in order to reduce the cost of new energy vehicles, the power battery that accounts for nearly half of the total vehicle cost has become the focus of cost reduction. Last year, the prices of mainstream power battery companies generally fell by 20% to 30% compared with last year. Compared with 2012, the power battery cell energy density increased by 1.7 times and the price dropped by 60%.

However, the unprofitability of power battery recycling is still a problem faced by many recycling companies. Since the market scale has not been formally launched, waste power battery recycling is still in a state of loss. At the same time, because the power battery needs nickel, cobalt and other rare metal mineral resources, with the growth of new energy vehicle sales for the increase in demand for power batteries, its prices have skyrocketed.

â–² Professor of Central South University, Seidemei Chairman and CTO Li Jian

At the beginning of this year's 2018 Electric Vehicles Centennial Conference, Professor Li Zhong, a professor at Central South University, and Seidemei Chairman and CTO, stated that China’s cobalt resources are in short supply and 95% rely on imports. The proportion of cobalt required for new energy car batteries has reached more than 70%. With the further promotion of new energy vehicles, the price of cobalt has doubled in 2017. As a result, recycling of cobalt and other rare resources is very important during the recovery of power batteries.

The new energy automotive industry trend has been irreversible, facing the rapid growth in the future demand for power batteries, auto companies that do not have the power battery production capacity, hoarding after recycling waste power batteries. Bingpu Group Vice President Yu Haijun said to the headline APP that the phenomenon of the accumulation of used power batteries by the automobile companies in the future may still exist. This policy makes it clear whether the main plant is the subject of power battery recycling will intensify this phenomenon. The policy will not be known until it has been running for some time.

On the whole, the promulgation of the “Provisional Measures” clarifies the main responsibility for the recovery of power batteries, and regulates the use of power batteries, but it faces the benefits of the huge market demand in the future, and waste power battery recycling industry chain. The formation and rapid transfer of rare resources will still take time.