德勤锂电白皮书系列之三：锂电回收未来可期（英）-34正式版

ChinaLithiumIndustryDeloittePOV3.0:SustainableFutureofLithiumRecycleDeloitteConsultingChina|November,2022KeyTakeawaysWiththerapidgrowthofglobalnewenergyvehicleindustry,theupstreamresourceconstrainthasbecomeoneoftheburningissues.WhilevariouscountriescontinuetoperfecttheEVbatteryrecyclingpolicysystemunderthecarbonneutralrequirements,theEVbatteryrecyclingindustryhasbeenflourishing,andtheupcomingbatteryretirementtidewillfurtherdrivethedevelopmentoftheEVbatteryrecyclingindustry.TheEVbatteryrecyclingmarketispromisingintechnologydevelopment,businessmodel,andindustrychainsynergy,buttherearestillmanykeychallenges.Fromthetechnologydevelopmentperspective,theprocessandtechnicalrouteofEVbatteryrecyclingisrelativelyclear.Basedonactualbusinessexpectations,directrecyclewilldominatetherecoverymethodinthemedium-tolong-term:ThetwomainwaysofEVbatteryrecyclingarereuseanddirectrecycle.Thelarge-scaledevelopmentofreusefacesenormouschallengesduetosafetyissues,insufficientmarketregulation,theimpactofviciouscompetition,andthelackofindustrystandards.Inthemedium-tolong-term,recyclewithrelativelymaturetechnologiesandcommercialapplicationsisexpectedtobethedominantapproachInthematerialrecoveryprocess,pyro-andhydro-metallurgyarethemainstreambattery-graderawmaterialpurificationandregenerationtechniques,whichhashightechnicalandscalebarriers,whilecreatinghighereconomicbenefits,leadingcompaniesneedtoaddressthesupplystabilityoffront-endbatteryrecyclingchannelsandactivelylayoutrawmaterialrecyclingcapacitytoachievehighercommercialvalueFromthebusinessmodelperspective,third-partyandbatterymanufacturerrecyclinghavebeenwell-practiced.Theconstructionofrecyclingnetworksandclosed-loopregenerationareessentialsuccessfactors:ThemarketmechanismisthemainchallengeforthecurrentdevelopmentoftheEVbatteryrecyclingindustry.ItforcestheleadingrecyclerenterprisestoenhancetheirscaleandbreakthroughtheprofitabilitybottleneckThird-partyrecyclingcompanieshavetheadvantageofrecyclingtechnology,whilebatterymanufacturersandautomotiveOEMsgainedtheadvantageofrecyclingandresalechannels;inthecurrentEVbatteryrecyclingmarket,thekeytosuccessfulbusinessmodelsliesintheconstructionofrecyclingchannelnetworksandaclosed-loopecologyforrecyclingmaterialsforreuseFromtheindustrychainsynergyperspective,themultiplesectorsoftheLi-batteryandNEVindustrychainhaveshownthetrendofextendingtobatteryrecyclingindifferentformsanddegrees:Upstreamlithiumandnewenergyvehicleindustrytechnologyandmarkettrends,suchasbatterymaterialinnovation,integrationtechnology,batterybanks,etc.,bringimpacttothepowerbatteryrecyclingindustry,andopportunitiesandchallengescoexistAnindustryallianceofupstreamanddownstreamenterprisesintheindustrychainmaybeanidealmodelfortherecyclingindustry,aseachmemberenterprisecancomplementeachother’sstrengthsandweaknessesformutualbenefits.However,duetothelongindustrychainandmanystakeholdersinvolved,themodelisstillintheexplorationstageofactualcommercialoperation©2022.Forinformation,contactDeloitteChina. 2DeloitteObservationsandPOVTrendofEVBatteryRecycleDevelopment01 IndustryoverviewandprospectsofEVbatteryrecycle02 ValuechainanalysisofEVbatteryrecycle03 Marketchallengesandbusinessimplications©©20222022..ForForinformation,information,contactcontactDeloitteDeloitteChinaChina.. 3IndustryoverviewandprospectsofEVbatteryrecycle©©20222022..ForForinformation,information,contactcontactDeloitteDeloitteChinaChina.. TheImperativeEVBatteryRecycling:AlleviationtoTheConstraintofUpstreamResourcesThescarcityofupstreamresourcesisalong-termconstrainttothedevelopmentofdownstreamapplicationmarket.Thelithiumresourcesupplyanddemandgapisexpectedtoemergeandexpandgraduallyafter2025,reaching145tonnesoflithiumcarbonateequivalentin2030.EVbatteryrecyclingwillalleviatetheconstraintsofresourcesupplyanddemandimbalanceonindustrydevelopmenttoacertainextent.Supply:resourcepressureResourceshortageinChinaHigh-qualitymineralresourcesarerelativelyscarceinChina.Therearefewhigh-qualityhardrocklithiummines,andthetechnologyandproductioncapacityoflithiumextractionfromsalt-lakebrinerequirebreakthroughs.UncertaintyofinternationalsupplyThesupplyofglobalrawmaterialsisconcentrated,andtheproductionfluctuateswildly.EmergenciessuchastheepidemicoutbreakandtheRussian-Ukrainianconflicthaveexacerbatedtheuncertaintyoftheglobalsupplychain.LongcapacitydevelopmentcycleThedevelopmentcycleofrawmaterialsandmineralsisrelativelylong.TheresourceproductionexpansioncycleisaboutfourtimesthatoftheEVbatteriesexpansioncycle,thusleadingtothemismatchbetweensupplyanddemand.

Globallithiumresourcesupplyanddemandprojection(Tenthousandtonnes/LCE)Globallithiumsupply Globallithiumdemand400-37%300-1%2001002022E2023E2024E2025E2026E2027E2028E2029E2030E

Demand:surgingEVmarketStrongapplicationdemandTheEVmarket,asthemainapplicationscenariooflithiumresources,hasenteredaperiodofrapidgrowth,andthesalesvolumeofEVsinChinaincreasedbymorethan150%year-on-yearin2021.DifficultyinalternativeR&DTheR&DofEVbatterieswithdifferentchemicalsischallenging.Inthelongrun,Li-batteries,whichhavearelativelyfixeddemandformineralresources,willstillbethemainstay,anditishardtofindanalternativesolutionintheshortterm.IntensivecompetitionBatterycompaniesmaintainarapidpaceofexpansiontoseizemarketshareanddrivethedemandforupstreamresources,amidtheincreasinglyfiercecompetitionintheEVbatteryindustry.Source:CAAM,MinmetalsSecurities,publicinformation,Deloitteanalysis©2022.Forinformation,contactDeloitteChina. 5GlobalEVBatteryRecyclingMarketSizeProspectsThedevelopmentoftheglobalEVbatteryrecyclingmarketisabouttoaccelerate,whichisexpectedtoexceed10billiondollarsinthenextfiveyears,amongwhichtherecyclingmarketofthelithiumisthemostconsiderableGlobalEVbatteryrecyclingmarketsizeprojection1BillionUSD246.5LiNiCoMn35.7+38%26.619.113.563%+81%9.163%4.76.063%62%3.462%0.862%71%67%61%20212022E2023E2024E2025E2026E2027E2028E2029E2030ESource:AnsonSecurities,Wind,publicinformation,DeloitteanalysisRemarks:1.Estimatebasedonthetheoreticalrecyclablequantityandpriceoflithium,nickel,cobaltandmanganese;2.ConvertedattheannualaverageexchangerateofUSDtoRMBin2021(1USD=6.45RMB)©2022.Forinformation,contactDeloitteChina. 6EVBatteryRecyclingMarketDrivers-MacroPolicyGuidanceAfteryearsofdevelopment,batteryrecyclingpoliciesandlegislationindevelopedcountriesarecompletewithstricterrequirements;Chinahassignificantlyacceleratedtheintroductionofbatteryrecyclingpoliciesoverthepastdecade,aimingtopromoteandensuretheconstructionofrecyclingsystemsandguidethestandardizedandintegrateddevelopmentoftheindustryPolicyandlegislativesystemsindevelopedcountriesstartedearlyandarerelativelymature China’spolicyguidancehasbeenstrengthenedinrecentyearsNorthAmericaCompletefederal,stateandlocalbatteryrecyclingregulations

EuropeEnhancedrequirementsandstrengthenregulatorysystems

Japan&SouthKoreaRegulatetheindustryfromthelegislativelevel

ChinaGraduallyimprovetheestablishmentofthepolicysystemtostrengthentheregulationandpolicyimplementationTheU.S.DOE2021Enablestheend-of-lifereuseoflithium-ionbatteriesandrecyclingofcriticalmaterialsatscale,plantheconstructionofafullcompetitivevaluechainintheUnitedStates,andpromotethedevelopmentofcost-effectiverecyclingtechnologyNationalBlueprintforLithiumBatteries2021-2030TheU.S.EPA 1996Createstheframeworkforthepropermanagementofhazardousandnon-hazardoussolidwaste,includingrechargeablebatteries,lithium-ioncarbatteries,etc.TheResourceConservationandRecoveryActTheU.S.StateGovernmentsMakesregulationsforthetypesofwasterecycling,disposalmethods,cost,etc.toencourageallpartiesintheindustrychaintocollaboratetohelpproperlyrecyclebatteries

EU2022Theproposedbatteryregulationssetincreasedtargetsrelatedtopowerbatteryrecycling,withstricterrequirementsforbatteryrecyclingmeasuresandbatterymetalmaterialrecoveryratesNewEURegulatoryFrameworkforBatteriesSwitzerland 2022GuidetoWasteissuedbytheFederalOfficeforEnvironmentalclarifyrulesforrecyclinglithiumbatteriesforvehiclesandencourageautomotiveOEMstoimplementenvironmentallysounddisposalsystemFOENGuidetoWasteGermany 2021Regulatoryagencies(StiftungEAR)havetheresponsibilitytoregulatethebatterymanufacturingmarketandtocheckthecollectionandrecyclingefficiencyofeachrecyclingsystemandreportmarketparticipationBattG2

SouthKorean’sParliament2021Easeregulationformandatorybatteryrecyclingofpreviouslyregisteredvehiclesandallowforenvironmental-friendlyutilizeofend-of-lifebatteriestoimprovethesecondaryutilizationrateofpowerbatteriesCleanAirConservationActTheMinistriesofJapan2004TheJapanPortableRechargeableBatteryRecyclingCenter(JBRC),jointlyauthorizedbyJapan'stwocentralministries,aimstopromotethecomprehensiverecyclingofusedrechargeablebatterymaterialsDietofJapan2001Manufacturingenterprisesshouldfulfilltheresponsibilityofrecyclingtheusedproducts,followthe3Rprinciple,andencouragethatend-userssendend-of-lifebatteriestospecialrecyclingsitesTheLawforPromotionofEffectiveUtilizationofResourcesinJapan

MIITandothertwo2022TodevelopandintroducenewenergyvehiclepowerbatteryrecyclingmanagementmethodsandrelateddepartmentalrulesImplementationPlanforIndustrialCarbonDioxidePeakingMIITandotherseven2022TopromoteupstreamanddownstreamcooperationintheindustrychaintobuildrecyclingchannelsAcceleratingthePromotionofComprehensiveUtilizationofIndustrialResourcesNEA2021Requestforestablishingthebatteryconsistencymanagement,andmakerequirementsfortheevaluation,monitoringandsupervisionofenergystorageprojectsforsecondaryuseTheManagementStandardsforNewEnergyStorageProjects(Provisional)

MIIT2020TopromotetheNEVpowerbatteryrecyclingsystemdevelopment,andtoestablishanumberofexemplaryenterprisesforthesecondaryuseandrecyclingofwastepowerbatteriesKeyPointsofEnergyConservationandComprehensiveUtilizationinIndustryin2020MIITandothersix2018Implementationoftheextendedproducerresponsibilitysystem,clarifytheprimaryresponsibilityfulfillersofbatteryrecyclingInterimMeasuresfortheManagementofRecoveryandUtilizationofNewEnergyVehiclePowerBatteryMIIT2018Establisha“comprehensivemanagementplatformfortraceability”tocollectinformationonthewholeprocessfromproductiontorecyclingofpowerbatteriesInterimProvisionsontheManagementofTraceabilityofNewEnergyVehiclePowerBatteryRecyclingSource:governmentwebsite,EverbrightSecurities,publicinformation,Deloitteanalysis©2022.Forinformation,contactDeloitteChina. 7DrivingFactorofBatteryRecyclingMarket:TheUpcomingTrendofEVBatteryRetirementTheretirementtideofEVbatterieshaspromotedthegradualreleaseofrecyclablebatterywasteanddriventhedevelopmentofthegloballithiumrecyclingmarket,withthevolumeofend-of-lifebatteriesandprocessscrapsrisingataCAGRof43%overthenextdecade;TheChinesemarket,whichleadstheglobalEVmarket,isalsoexpectedtousherinconsiderablegrowthinthefieldofLi-batteryrecyclingTheprojectionofglobalrecyclableend-of-lifeLi-batteriesandbatteryproductionscrapsGWhEnd-of-lifeLi-battery1,483Li-batteryprocessscrapsCathodeprocessscraps11,119

GlobalEVbatteryinstallationsharesin2021ChinaOthercountriesandregions15661 104

+43%840621453325227

52.1%China’sEVbatteryinstallation154.5GWh2021 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030EWiththevigorousdevelopmentoftheglobalEVmarket,theinstalledcapacityofEVbatterieshasrisenrapidly.TheservicelifeofEVbatteriesisabout5-8years.Therefore,thefirstbatchofbatteriesputintothemarkethasusheredina“retirementtide”,especiallyintheChinesemarket,wheretheproductionoutputandsalesofEVsandEVbatterieshavesoaredsince2015.End-of-lifebatteriesaretheprimary“rawmaterials”forEVbatteryrecycling.TheadventoftheEVbatteryretirementtidewillcontinuetoproviderecyclablewastefortheLi-batteryrecycling.Source:SNEResearch,ChinaAutomotiveBatteryInnovationAlliance,Wind,AnsonSecurities,publicinformation,DeloitteanalysisRemarks:1.ConvertedtotheamountofEVbatteriesthatcanbeproduced©2022.Forinformation,contactDeloitteChina. 8RecyclingMethodsofEVBatteryReuseanddirectrecyclearethemostgenerallyacceptableandenvironmentallyfriendlymethodsofbatteriesdisposal.Large-scaleapplicationsofEVbatteryreuseischallenging,andEVbatteryrecyclingmightbedominatedbydirectrecycleinthemediumandlongtermReuse:utilizationoftheresidualcapacityofbattery

Recycle:recoveryofmetalmaterialsandotherresourcesRecyclingmethodsInspection,DataReusableReuseapplicationevaluationpackEnd-of-lifebatteryPropertiesReusableEnergystoragedetectionmoduleLow-speedResistanceReusablevehiclesdeterminationcellUPS•

AnodematerialsGraphite,silicon-basedmaterialsRecycleOthermaterialsMetalshell,electrodematerial, End-of-liferecycledbydismantling, batteryshreddingandsorting

CathodematerialsLithium,cobalt,nickel,manganeseandothermetaloxides,recycledbydirectmethodandextractivemetallurgyElectrolytRecycledbyextractingmethods＋Increasevalue:optimizetheutilizationofbatteriesandmaximizetheresidualvaluePros＋Costreduction:reducethecostofenergystorage,low-speedelectricvehiclesandotherrelatedindustries,andpromotethedevelopmentofthecirculareconomy＋Reducepollution:effectivelyreducethepollutionofwastelithium-ionbatteriesandreducewasteofresources‒Applicablelimitations:notsuitableforternary(NMC)lithiumbattery,difficultytoConsmaintaineconomiesofscalesubjecttomanyqualifications‒Inefficiency:Theevaluationprocessofbatteriesistime-consumingandinefficient‒ Potentialsafetyrisks:Theinternalsafetyhazardsofretiredbatteriesarehighlyconcealed,whichaffectstheremaininglifeandsafetyofthebatterypackSource:CAAM,AnsonSecurities,publicinformation,Deloitteanalysis

Highrecoveryrate:Matureintechnology,thustheresourcerecoveryrateishighSimpleprocess:Theprocessismorestraightforwardthanreuse,andthereisnoneedforscreeningandsafetyassessmentComplementarytechniques:acombinedapproachcanbeappliedtoimprovetheeconomicbenefitsofrecyclingandsolvetheproblemofenergyover-consumptionCostissues:Thepyrohasalargeinvestmentandhighenergyconsumptionintheearlystage,whilethehydroisrelativetime-consumingEnvironmentalpollution:Bothpyroandhydrocausesevereenvironmentalpollutioneasily,andtherequirementsforpollutiontreatmentarehighUncertainty:EmergingtechniquessuchasbiologicalprocessesandsupercriticalCO2extractionarestillinstartup©2022.Forinformation,contactDeloitteChina. 9Reuse:DevelopmentLimitationFactorsThereuseindustryhassignificantdevelopmentlimitationsandbottlenecksatthecurrentstage.ThedownstreamapplicationdevelopmentisexpectedtobeslowbeforethepolicysystemisimprovedandtheindustrystandardisestablishedPolicyFactorThereuseindustrymanagementsystemstillneedstobeimproved:ThepolicymanagementsystemforthereuseofEVbatteriesisstillintheinitialstageofestablishment,andittakestimetoimprovethenationalregulatorysystemandlocalimplementationPolicyguidancemaintainsamoderatelypositiveattitude:Althoughthepolicyintendstopromotereuse,italsoemphasizestheimportanceofstrictmanagementofthesafetyofEVbatteryreuse,andisespeciallycautioustowardsreuseinenergystoragescenarios.2022.02AcceleratingthePromotionofComprehensiveUtilizationofIndustrialResourcesRequirementstoimprovetherecyclingsystemandmanagementsystemofend-of-lifepowerbatteries,strengthentraceabilitymanagementwithinthewholelifecycleofbattery,promotethesafereuseapplicationofend-of-lifepowerbatteriesinthefieldofpowerbackup,chargingandreplacement2021.09TheManagementStandardsforNewEnergyStorageProjects(Provisional)Requirenewly-builtenergystorageprojectstoestablishabatteryconsistencymanagementandtraceabilitysystemsandobtainthesafetyassessmentreportsissuedbycorrespondingqualifiedorganizationforreuseofbatteries

MarketFactorTechnologyFactorDemandside-uncertainpotential:•Keytechnologiestobebrokenthrough,industrystandardstobe•Lowacceptanceinthedownstreammarket:Duetounclearstandardsestablished:Thebatterylife-cycletraceabilitymanagementandandimmatureregulatorysystem,frequentaccidentsofbatteryreusedindustry-standardsystemaretobeestablished,andtechnicalforenergystoragehaveledtolowmarketacceptance.UsersareproblemsstillexistinseveralsectorsofthereusetechnologyprocessconcernedaboutthesafetyandconsistencyofreusedbatteriesEvaluationandsorting-Batteryspecificationsarecomplex,andlife•Impactofpotentialalternativeproducts:theriseofsodium-ionbatteriesandfuelcellsandothertechnologiesmayreplaceandevaluationisdifficultDetectionandscreening-Lackofbatteryuserecords,complicatedsqueezethemarketofLFPbatteriesforsecondaryusedetectingtechnologySupplyside-“badmoneydrivesoutgood”:Restructuring-Hightechnicalbarrierstobatteryconsistency•Long-standingmarketconfusion:Intheabsenceofeffectivemanagementregulation,manynon-compliantsmallworkshopshavelongbeenProductcertification-Fortheformationofindustrystandards,entrenchedinthereusemarket,anditisdifficultforenterpriseswithproductcertificationisdifficulthighinvestmentstoprofitandsurviveintheviciouscompetitionCollectionBatteryreuseprocessNohazardouswasteLowEvaluation&managementqualification;CollectionDisassemblycostSortingNoinvoicingrequiredSmallReuseworkshopsCertificationRestructuringDetection&Noinspection/environmentalHighScreeningtreatment;efficiencyLowproductionlineinputKeytechnicaldifficultiessectorsThecurrentmarketsituation:thecurrentcommercializationcasesofEVbatteryreusearefew.Mostoftheprojectsarepilotprograms,withonlyafewregularenterpriseswithqualificationsparticipating,suchasGEM,ChinaTower,etc.;thecurrentreusemarketisnotyetstandardizedandinchaos.Marketconfusioncausedbynon-compliantsmallworkshopsforcestheregularenterprisesintoadilemma,whichmakesthemarketlessattractivetoenterprisesthathavenotentered,andthemarketisdifficulttoscaleupintheshorttermSource:governmentwebsite,publicinformation,Deloitteanalysis©2022.Forinformation,contactDeloitteChina. 10Recycle:ProcessFlowofEVBatteryRecycleThemainchallengeofpowerbatterydismantlingandrecyclingliesintheinstabilityoffront-endbatteryrecyclingchannelsthatmakeitdifficulttoscaleuptheproductionofback-endbatterygraderawmaterialrefiningPretreatmentEnd-of-lifebatterypackDischarging&disassemblyUsedcellTypicalrecyclingprocessOptionalprocessRecyclingproduct

MechanicalProcessBattery-gradeMaterialsExtraction&RefiningProcessPyro-metallurgyDismantling,Hydro-metallurgyshredding&sortingBlackmass（incl.Li,Ni,Cu,Mn,etc.）Plastics,Cu/Alfoilsetc.UsedelectrolyteElectrolyterecoveryLiSaltCuSaltNiSaltMnSaltGraphiteElectrolyteSolventTheinstabilityandhighcostduetothehighly-fragmentedbatteryrecyclingchannels,andthedifficultiesofpretreatmentduetowiderangeofbatterypackspecificationsarethetwomaindifficultiesinthedisassemblyandrecyclingprocess

Themechanicalprocessandthemetalrefiningprocessafterthepretreatmentofthebatterypackhavebeenrelativelymature,canrealizetheeffectiveconversionoftheend-of-lifeEVbatteriestorecyclablehigh-purityrawmaterials;inthesituationofsharply-risinglithiummetalrawmaterialprices,large-scaleproduction,stablesupplyofend-of-lifebatteriesandclientrelationscanrealizeconsiderableeconomicreturnsSource:publicinformation,Deloitteanalysis©2022.Forinformation,contactDeloitteChina. 11Recycle:MainstreamBattery-gradeMaterialExtractionTechniquesRecyclingenterprisesgenerallyrefinethevaluablemetalsinend-of-lifeEVbatteriesthroughhydroorpyro-metallurgy,whicharehighly-technicalmaturityandwithclearsteps,whileotheremergingprocesses,suchasbiologicalprocessesandsupercriticalCO2extraction,arestillintheearlystagesofresearchanddevelopment;currently,inChina,EVbatteryrecyclingenterprises’processesaremainlybasedonhydroProcesscharacteristicsFacilities/EnergycostEfficiency/PeriodProcesscomplexityPollutiontreatment

HydrometallurgyUseacidstodissolvethemetalcomponentsofbatteriesandthenseparatetheconstituentelementsasinorganicsaltsandmetallicoxidethroughsolventextractions,chemicalprecipitation,andelectrolysissteps.Hydroissuitablefortherecyclingofsmallandmedium-scaleend-of-lifebatteries.Lowcostandenergy-efficientHighrecoveryandpurity,butrelativelylongrecycleperiodRelativelymorecomplicated,andneedstobeadjustedoptimizedforcertainbatterychemistriesRequireprocesseffluenttreatmenttoavoidwaterpollution

PyrometallurgyUsehigh-temperaturetoconvertmetaloxidesend-of-lifeinbatterymaterialstometalsormetalcompounds,whichproceedstocondensationandrefining.Pyrohashighcompatibilityandisapplicabletolarge-scalerecyclingofvarioustypesofend-of-lifeLi-batteries.Highinvestmentandenergy-intensiveTherecoveryrateisrelativelylower,butiscapableofrecoveringvariousheavymetalssuchasHgandZnSimplerpretreatmentmethodsbutnoteffectiveforLithium-iron-phosphate(LFP)batteriesRequiregasclean-upprocesstoavoidtoxicairemissionRepresentativeenterprisesSource:AnsonSecurities,DongguanSecurities,publicinformation,Deloitteanalysis©2022.Forinformation,contactDeloitteChina. 12Recycle:ProspectsofBatteryRecyclinginDifferentChemicalSystemsThedistinctionsinbatterychemicalstructureandpropertiesdeterminetherecyclingmode,reusemethod,valueandmarketsizeofend-of-lifeEVbatteries.ThedevelopmentofreuseofLFPisrestrictedtothecurrentconditions,andthefuturerecyclingmarketisexpectedtobedominatedbythedirectrecycleofternary(NMC)batteriesComparisonofbatteriesindifferentchemicalsystems ProjectionontheChinarecyclingmarketsizebybatterytype1Thechemicalpropertiesofbatteriesdeterminetheirdifferentrecyclingmethods:relatedLFPbatteriesTernary(NMC)batteriesRecycleNovaluablemetalscontained,theContainnickel,manganeseandtheoreticalrecoveryvalueisaboutcobalt.Thetheoreticalrecoveryvalue1,441USD/tonnevalueisabout6,651USD/tonneTheaveragecyclelifeisaboutTheaveragecyclelifeisestimatedCyclelife4,000,andthecapacitydeclinesat2,000timesorlowerslowlyBatteryMorestable,lesslikelytoAtabnormallyhightemperatures,experiencethermalrunawayandthepossibilityoffireandexplosionsafetyignitionathightemperaturesisrelativelylargeLFPbatteriesaremoresuitableforreusingduetotheirrelativelylowmaterialcost,goodstabilityandlonglifespanNMCbatteriesaremoresuitableforrecyclingduetotheirrelativelyhighmaterialcost,poorstabilityandshortlifespan.

BillionUSD2LFPbatteriesreuseLFPbatteriesrecycle2.14NMCbatteriesrecycle1.941.740.790.880.780.760.880.680.3720212022202320242025ThedevelopmentofNMCbatteriesstartslaterthanLFP,andtherecoveryratealsolagged.End-of-lifeLFPbatteriesaremoresuitableforreuse.However,reusehasnotyetachievedtechnicalbreakthroughscurrently,anditischallengingtoachieveeconomiesofscale.ItisprojectedthattherecyclingmarketofNMCbatterieswillcontinuetoleadintheshortandmediumterm.Source:CICC,EverbrightSecurities,TianfengSecurities,publicinformation,DeloitteanalysisRemarks:1.Estimatedbasedonthepredictedaveragemetalpriceofrespectiveyear;2.ConvertedattheannualaverageexchangerateofUSDtoRMBin2021(1USD=6.45RMB)©2022.Forinformation,contactDeloitteChina. 13ValuechainanalysisofEVbatteryrecycle©©20222022..ForForinformation,information,contactcontactDeloitteDeloitteChinaChina.. DevelopmentTrendofLi-batteryandNEVIndustrialChainWiththetransformationoftheindustrytomarket-drivendevelopment,thelithiumbatteryandNEVindustrywillfurtherevolvefromachained-formtoameshecologywithdeepercooperationandmutualempowerment,inwhicheachsectoroftheindustrychainshowsthetrendofextendingtobatteryrecyclinginvariousformsanddifferentdegreesLithiumbatteryindustrialchainextendstobatteryrecyclingRawMaterial Anode,Cathode&Refining&Processing ElectrolyteProductionResourcesBatteryRecycle&ReuseBatteryManufacturingExploitationIndustrialChainSectorIndustrialChainDirectionIndustrialChainFutureExpansionDirectionBatteryCharging&ReplacingFacilitiesOEM&ConsumptionSource:publicinformation,Deloitteanalysis

EnterprisesinmultiplesectorsextendtobatteryrecyclingTechnology-basedextension:Resourcerefiningenterprisesandanode,cathoderawmaterialmanufacturershavethetechnicalsimilarityinrecyclingandextractiontechnology,whichdrivestheirextensiontotherecycling.Resource-basedextension:Batteryenterprises,OEMsandbatterybanksandotherpowerexchangeservicecompaniesarepredictedtotakeadvantageofresourcestoexpanddownwardsintotherecyclingandestablishingarecyclingsystem.BatteryrecyclingenterprisesextendtoothersectorsThroughdismantlingend-of-