Manufacturing News

China to launch pilot EV battery recycling program

China will launch a pilot electric vehicle battery recycling program in 17 cities and regions, the industry ministry said, with Beijing eager to head off an emerging pollution threat.

The Ministry of Industry and Information Technology said in a notice published on its website Wednesday the cities and regions would encourage car producers to establish recycling service outlets and cooperate with battery producers, used-car dealers and scrap merchants to build regional recycling systems.

It said the entire industrial chain needed to be fully mobilized to ensure that EV batteries were recovered. It would strictly control the number of new enterprises involved in battery recycling and make full use of existing recycling bases in China to promote sustainable development in the sector.

The ministry also promised to draw up policies to support battery recycling, making full use of existing tax incentives and creating innovative new financing methods.

The ministry has published draft rules to create a "traceability management platform" intended to track the life cycle of electric car batteries from production to disposal.

China wants to bring annual EV output to around 2 million by 2020 but it has acted to curb "blind" growth in manufacturing capacity, with as many as 102 companies producing 355 vehicle models by the end of March.

Data published by the industry ministry this week showed that China produced 413,200 new-energy vehicles in the first six months of this year, up 95 percent from a year earlier. Sales more than doubled to 412,000 vehicles over the period.

State news agency Xinhua said in a separate report Wednesday that China produced 37.35 million kilowatt hours of new-energy vehicle batteries last year, with overall prices declining by a quarter to about 1.45 yuan ($0.2143) per watt-hour.

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