China’s EV battery recycling market hits 78 billion USD, recycled materials could top 280 billion USD by 2030
China’s battery recycling industry is seeing increased activity alongside rising volumes of retired EV batteries and tighter regulatory oversight. According to data from the Qianzhan Industry Research Institute, China’s battery recycling market reached 558 billion yuan (approximately 78 billion USD). In comparison, recycled battery materials generated 647 billion yuan (roughly 90 billion USD), highlighting the scale of the sector within the EV supply chain.
Industry scope and processing routes
Battery recycling in China primarily follows two routes: cascade utilization, in which retired batteries are repurposed for secondary applications, and material recycling, in which metals and other materials are recovered. These routes correspond to different battery life stages and form part of an industrial chain covering collection, processing, and downstream material reuse.
Industry chain and key participants
The battery recycling value chain includes upstream battery manufacturers and raw material suppliers, midstream recycling companies, and downstream material producers. Upstream participants include CATL, BYD, Shanxi Coking, and Yunnan Tin. Midstream recycling companies include Huayou Cobalt, Ganfeng Lithium, New Energy Times, and Haopeng Technology. Downstream enterprises focus on battery materials and powder metallurgy, with companies such as Dangsheng Technology and Heyuan Fuma active in this segment.
Licensed capacity and industry scale
As of 2024, China had 156 companies listed by the authorities as qualified to conduct the comprehensive utilization of retired lithium-ion batteries. These companies reported a combined nominal processing capacity of 423.3 million tons per year, compared with the previous year. In the lead-acid battery segment, 71 licensed enterprises reported a total of 1.47 billion tons of approved processing capacity per year, according to disclosed capacity figures.
Market value and revenue breakdown
From a revenue perspective, lithium battery recycling generated approximately 220 billion yuan (approximately 31 billion USD) from sales of recycled materials in 2024. Recycled lead sales reached 427 billion yuan, equivalent to about 59 billion USD. Combined, sales of recycled battery materials totaled approximately USD 90 billion, distinct from the value of collected waste batteries.
Competitive and regional landscape
Based on announced capacity, Bangpu Recycling and CATL’s recycling operations each accounted for approximately 6.4 percent of total recognized lithium battery recycling capacity in 2024. GEM followed with about 5.9 percent, while Ganfeng Lithium and Xien Recycling each held around 4.7 percent. Regionally, battery recycling companies are concentrated in provinces such as Jiangxi, Guangdong, Zhejiang, and Anhui, where battery manufacturing and materials industries are already established.
Policy environment and regulatory direction
In February 2025, China’s State Council approved an action plan related to the national EV battery recycling system. The plan outlines standardized collection, stricter supervision, and improved traceability, and references reductions in informal recycling activity and scale-based operations.
Market outlook to 2030
Qianzhan projects that China’s battery recycling market value will exceed 1,000 billion yuan, or about 139 billion USD, by 2030. Over the same period, sales of recycled battery materials are forecast to exceed 2,000 billion yuan, equivalent to approximately 278 billion USD. These figures place battery recycling within China’s EV industry and raw-material supply chain through the end of the decade.
