So what happens to a retired EV battery?
Source: China News Service
China is entering a new phase of its electric vehicle (EV) revolution—not on the road, but in the scrapyard. With the earliest generation of EVs now reaching the end of their lifespan, the country is seeing a surge in battery retirements. Under rules introduced in 2016, automakers must provide at least eight years or 120,000 kilometers of warranty coverage for core components such as the battery, electric motor, and control system. That threshold is now being crossed.
In response, a growing number of players are moving into the battery recycling business. More than 172,000 companies in China are now registered in the field, with the number increasing steadily over the past decade. Shanxi, a coal heartland now pivoting toward clean energy, is among the provinces positioning itself to capitalize on the emerging market. In Taiyuan, for example—China’s first city to adopt an all-electric taxi fleet back in 2016—around 8,000 EV taxi batteries are scheduled for retirement this year.
So what happens to a retired EV battery?
At Dinos New Energy, a Shanxi-based recycling firm, the process is split into three stages. First, batteries with at least 40–80% of their original capacity are tested and repurposed for use in less demanding applications such as energy storage—known as secondary utilization. Next, batteries below 40% capacity go through pre-treatment: discharging, shredding, and sorting to recover materials like copper, aluminum, and electrode powder. Finally, these materials are processed using methods such as hydrometallurgy to extract reusable metals.
Local governments are backing the sector with policy support. Shanxi has introduced several measures, including plans to modernize equipment and promote a circular economy for industrial waste. These frameworks aim to tighten regulations across the recycling value chain and encourage investment.
Industry experts say the future of battery recycling in China will hinge on better coordination across the supply chain, unified technical standards, and steady innovation in core technologies. Building a closed-loop system that’s scalable, profitable, and sustainable has become a pressing challenge—not just for Shanxi, but for China’s entire clean energy transition.
Reproduced article do not represent the position of New Energy Era.