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Monday, May 12, 2025

The Chinese Circular Economy for New-Energy Waste: Battery and Solar Recycling Systems and Their Optimization

     China is the world’s largest producer of solar panels, batteries, and EVs. It also has the most of these components that are spent from use. Thus, China is the biggest challenge and the biggest opportunity for recycling these components. That is beginning to happen on a larger scale as the public participates more in the circular economy. Andy Corbley, in an article for Good News Network, an unusual media source that seeks to spread positive news stories, or “good news,” notes:

The China Resources Recycling Group, created by the State Council last year, is seeking to bring together businesses with the expertise and infrastructure to recycle offline e-waste in large quantities for its lithium, cobalt, copper, gold, aluminum, and nickel.”

     The trade in these recycled materials reached $38.5 billion last year. After a decade of growth in EV production, China is now expecting 4 million tons of retired batteries that can be recycled. E-waste and new-energy waste recycling companies in China are seeing decent revenues from the increase in batteries and other components. Chinese businesses are signing up for inclusion in the battery recycling process, with 156 so far. The goal is to “standardize the battery-recycling market’s practices for avoiding workplace accidents and environmental contamination.”

     China is not only the world’s biggest producer of solar panels but also the world’s biggest consumer of them. They were the first to reach 100 GW of installed solar PV capacity in 2017. As of 2024 one one-third of all solar panels deployed were deployed in China. Many of the first generation of solar panels are approaching the end of their lifetimes so recycling will only grow in importance for them as time goes on. The article mentions that since their components are less valuable than battery components, their recycling systems are less developed.

The recycling chains for solar power are less developed than for batteries, in part because the environmental impact of batteries is higher than retired solar panels. But if the growth in producing panels, producing batteries, and recycling batteries is any indication, one would expect this deficiency to disappear rapidly as the country begins to retire its first generation of solar panels.”

     In July 2021, China unveiled a plan to promote the circular economy for the next five years.

The plan, released by the National Development and Reform Commission, specifies that China's energy and water consumption per unit of gross domestic product will be lowered by about 13.5 percent and 16 percent, respectively, by 2025 from the 2020 levels.”

Efficiency of resource utilization will be greatly improved by 2025, with circular economy playing a bigger role in ensuring resource security, reads the document.’

Battery recycling is a part of that plan. Before that, in February 2021, the State Council called for the development of a green, low-carbon circular economy. They said that by 2025, this green circular economy would be taking shape, and this does seem to be the case.  

In terms of building a green manufacturing system, the circular set targets in many sectors, including industry, agriculture, services, environmental protection, industrial parks, and cluster and supply chains.’

For example, green reforms should be obtained in industries, including steel, petrochemical, chemical, nonferrous metal, building materials, textile, papermaking, leather, and others, the circular said. And all-out efforts should be made to develop the remanufacturing industry and clean production.”

     I found that Statista had some great graphed data about Chinese battery recycling, as can be seen below.










Volume of retired electric vehicle batteries in China in 2020, with estimates for 2025 and 2030 (in metric kilo tons)





Size of the electric vehicle battery recycling market in China from 2019 to 2023, with an estimate for 2024 (in billion yuan)





Share of recycling channels of electric mobility batteries in China in 2024




Leading new energy vehicle manufacturers in China in April 2024, based on number of EV battery recycling outlets

 


 


 

References:

 

China’s Dying EV Batteries and Solar Cells Are Powering a Circular Economy Worth $38 Billion per Year. Andy Corbley. Good News Network. May 9, 2025. China’s Dying EV Batteries and Solar Cells Are Powering a Circular Economy Worth $38 Billion per Year

China plans to promote circular economy. The State Council. The People’s Republic of China. Updated: July 7, 2021. China plans to promote circular economy

State Council calls for green, low-carbon and circular development. The State Council. The People’s Republic of China. Updated: February 22, 2021. State Council calls for green, low-carbon and circular development

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