On April 7, according to relevant media reports, 2022 witnessed the price of battery-grade lithium carbonate climbing to a peak of 604,000 yuan/ton, followed by the prosperity of the lithium battery recycling market, attracting many companies to devote themselves to the field of battery reform.
Despite the buoyant market, formal recyclers are under competitive pressure to compete with small workshops.
The graph comes from the network
According to the report, most of the small workshops rely on simple tools such as crowbars and machetes to operate, and these self-employed individuals dismantle batteries in their own courtyards, and their operating costs are extremely low due to the lack of invoicing and the lack of environmental protection measures and investment in production equipment, so they have a strong bidding advantage.
The graph comes from the network
At the same time, domestic enterprises have traditionally adopted centralized auctions in the disposal of waste power batteries.
In the last year or two, large companies have begun to implement stricter recycling qualification audits, but many small auctions are still based on the "highest bidder" principle, that is, whoever bids the highest will sell the used batteries to whom.
As of 2023, the standard recycling rate of batteries for new energy vehicles in China is less than 25%, resulting in the vast majority of used batteries being purchased through informal channels, a situation that has caused concern among white-listed companies, who point out that more than 70% of used batteries fall into the hands of second-hand traders and small workshops.