Since 2018, the first batch of domestically produced automotive power batteries have started to reach the end of their lifecycle, triggering what is now being called the "end-of-life wave." As one of the primary methods for recycling used batteries, battery repurposing has become a competitive business among various battery manufacturers.
The industry expects the number of discarded power batteries to reach 14.03 GWh in 2018, with a recycling value of approximately 0.3 yuan per Wh. This suggests that the lithium battery recycling market is already worth nearly 5 billion yuan. By 2020, the market size is projected to exceed 10 billion yuan, with the amount of scrapped batteries increasing by about 20 times compared to 2016.
On average, the service life of a power battery ranges from 5 to 8 years, and its performance degrades with each charge cycle. Once the battery capacity drops below 80% of its rated capacity, it is no longer suitable for use in electric vehicles. However, after undergoing testing, maintenance, reconfiguration, and other processes, these decommissioned batteries can still be used in various applications such as energy storage systems, distributed photovoltaic power generation, home electricity, and low-speed electric vehicles. When they are no longer usable, they must be recycled and disassembled to recover valuable resources.
Faced with this emerging market, Li Junfeng, president of the New Energy Applications Division at Guangdong Lunshi New Energy Technology Co., Ltd. (Mengshi Technology), believes that leasing has become the dominant model for promoting battery reuse.
Li Junfeng told reporters that there are two main ways to use power batteries in secondary applications. If the cost of electricity for enterprises can be reduced, these batteries can be primarily used for energy storage. Alternatively, if using these batteries helps reduce the cost of lead-acid batteries, they can also be used in low-speed electric vehicles or two- and three-wheeled electric vehicles.
Currently, Tianjin Lions New Energy Recycling Technology Co., Ltd., a subsidiary of Mausoleum Technologies, has begun to play a role in the field of decommissioned power battery recycling.
"Due to the uncertainty in the useful life of batteries used in secondary applications, it's not practical for consumers to purchase them outright," Li Junfeng said. "Leasing can help minimize the anxiety of both enterprises and users, achieving a win-win situation."
In February of this year, the Interim Measures for the Management of the Recycling and Utilization of Power Batteries for New Energy Vehicles, issued by seven ministries including the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the Ministry of Environmental Protection, clearly stated that under the premise of ensuring safety and controllability, used batteries should be reused in a multi-level and multi-purpose manner to improve energy efficiency. It also required auto companies to establish recycling channels and outlets, and for battery producers, recyclers, and dismantlers to jointly build and share these channels.
Li Junfeng believes that automobile manufacturers, battery factories, and professional lithium battery recycling companies will be the key players in the future. He added, "After sales are blocked, companies may turn to leasing models to manage the lifecycle of retired batteries."
After nearly two years of trial and adjustment, Tianjin Mengshi proposed a new business model, using a third-party platform as an intermediary to connect all relevant parties. Once consumer demand is identified, the platform forwards the information to the warehouse and battery factory, allowing lithium battery recycling companies and related businesses to provide products based on demand.
During the leasing process, the platform handles maintenance and repairs, while the supplier company only needs to provide spare parts. The supplier company manages deposits, and the platform distributes profits through rent-sharing to protect the interests of the suppliers.
"There are already such specialized platform companies in China," said Li Junfeng. "In the future, this industry will also require multiple non-vehicle manufacturers, non-battery manufacturers, and non-professional lithium battery recycling companies, all working through fully independent third-party leasing platforms."
Considering the economic benefits of repurposing batteries, several industry insiders suggest that vehicle manufacturers should plan for secondary use when designing power batteries.
"Through proper planning, the utilization rate of power batteries could exceed 90%," Li Junfeng explained. "A single module can be used for electric bicycles and tricycles by adding a protection board, and simple series or parallel connections can apply it to low-speed electric vehicles and energy storage systems."
Professor Li Jian from Central South University pointed out at the Electric Car 100 Forum that over 90% of low-speed electric vehicles currently use lead-acid batteries due to their cost advantage. If costs are properly managed, the cost of using power batteries for secondary applications could be comparable to that of lead-acid batteries. Compared to lead-acid batteries, power batteries offer clear advantages in weight, range, and charge/discharge cycles.
Currently, there are nearly 2 million low-speed electric vehicles nationwide in China, with annual sales volumes two to three times that of high-speed electric vehicles.
In addition to Lion Science and Technology, companies like Ningde Era, China National Aviation Lithium Battery, and BAK Battery are also exploring the use of retired power batteries.
BAK Battery plans to implement full lifecycle management for decommissioned power batteries that partially meet secondary use conditions. Those that don't meet the criteria are sent to material manufacturers for processing, where metals like cobalt, nickel, manganese, lithium, iron, and aluminum are extracted. According to the company, in May 2017, about 200 sets of retired BAK batteries were repurposed for shipyard energy storage projects.
China Tower Corporation is experimenting with using decommissioned batteries for energy storage at communication base stations. Gao Jian, Senior Director of the China Tower Energy Innovation Center, once stated that the demand for energy storage batteries at base stations is huge, and the use of recycled lithium batteries is expanding.
China Tower currently operates 1.8 million base stations nationwide, with an estimated total energy storage battery demand of around 146 GWh. Annual replacement and new storage station requirements amount to about 25 GWh. In early January of this year, China Tower also signed a strategic partnership agreement with 16 car companies and battery manufacturers to promote the recycling and utilization of new energy vehicle power batteries, enhancing cooperation across the supply chain.
Regarding whether repurposed power batteries are suitable for energy storage at communication base stations, some industry players have raised concerns. Li Junfeng noted that due to considerations of "communication security" and "electricity safety," large-scale use of decommissioned batteries with uncertain performance is not advisable.
"It is more appropriate to use these batteries for backup power in outdoor activities, factory peak-valley adjustment systems, or as power sources for small vehicles," he told the reporter.
Although the market potential for repurposing power batteries is significant, several obstacles remain. One major challenge is the high failure rate of repurposed batteries and the shortage of skilled technicians for battery maintenance and recycling.
"Conservatively, there is currently a gap of nearly 100,000 power battery maintenance technicians," said Li Xiaopeng, vice president of the School of Automotive and Transportation at Tianjin Vocational Technology University.
According to data from the China Automobile Association, as of the end of 2017, the number of new energy vehicles in China exceeded 1.7 million. Under current battery maintenance regulations, passenger and commercial new energy vehicles require maintenance every six months or 5,000 kilometers, while buses and special vehicles also need maintenance every six months.
Tianjin Vocational and Technical Demonstration University is collaborating with Tianjin Lions to train technicians. The program enrolls 300 students per session for three months, covering topics such as motor and battery dismantling, electric bicycle and low-speed electric vehicle assembly, and more.
"The training focuses on improving students' hands-on skills so they can quickly adapt to job requirements," said Li Xiaopeng. "To emphasize practical experience, instructors include senior engineers from various car and battery companies."
The first phase of the training was completed in November last year, with the first batch of 30 trainees mainly consisting of graduate students. Their focus was on developing battery-related monitoring molds or systems, with training in battery maintenance, testing engineers, and technical school lecturers.
Yixing Futao Metal Structural Unit Co. Ltd. is com manded of Jiangsu Futao Group.
It is located in the beach of scenic and rich Taihu Yixing with good transport service.
The company is well equipped with advanced manufacturing facilities.
We own a large-sized numerical control hydraulic pressure folding machine with once folding length 16,000mm and the thickness 2-25mm.
We also equipped with a series of numerical control conveyor systems of flattening, cutting, folding and auto-welding, we could manufacture all kinds of steel poles and steel towers.
Our main products: high & medium mast lighting, road lighting, power poles, sight lamps, courtyard lamps, lawn lamps, traffic signal poles, monitor poles, microwave communication poles, etc. Our manufacturing process has been ISO9001 certified and we were honored with the title of the AAA grade certificate of goodwill.
Presently 95% of our products are far exported to Europe, America, Middle East, and Southeast Asia, and have enjoyed great reputation from our customers.
So we know the demand of different countries and different customers.
We are greatly honored to invite you to visit our factory and cheerfully look forward to cooperating with you.
Steel Tubular Pole,Galvanized Tubular Steel,Steel Tubular Pole Tower
JIANGSU XINJINLEI STEEL INDUSTRY CO.,LTD , https://www.chinasteelpole.com