Robotic arms coat battery covers at a factory operated by Chongqing-based NEV maker Changan Automobile. (Photo/Chongqing Daily)

Chongqing - An EV battery’s story does not end when it leaves the car. In China, growing numbers of batteries are reaching retirement, creating both a waste-management challenge and a source of valuable metals such as lithium, nickel and cobalt. The country is expected to generate more than one million tonnes of spent vehicle batteries annually by 2030,  said Xinhua.

Chongqing is expanding its automotive industry into battery recycling. On October 9, the city invited project proposals to develop a collection and recycling system covering batteries from new energy vehicles (NEVs) and lithium-ion batteries from electric bicycles. The initiative outlines seven tasks, including collection points, testing, transport and digital traceability.

The initiative builds on a large manufacturing base. According to the National Bureau of Statistics, Chongqing produced 1.4495 million vehicles in the first eight months of this year. NEV output rose 4.2% year on year to 721,500 units, accounting for about half of total vehicle production. As more NEVs enter service, collection services for their eventual battery retirement also need to be planned.

The Interim Measures for the Recycling and Comprehensive Utilization of Waste Power Batteries from New Energy Vehicles, which took effect on April 1 this year, clarify automakers’ responsibility for collecting batteries installed in their vehicles sold and used in China. 

Manufacturers must establish collection points, directly or through third parties, in the prefecture-level jurisdictions where they sell vehicles, with provision proportionate to sales volumes. The rules further clarify automakers’ responsibility for collecting retired batteries.

Meanwhile, the recycling industry faces a mismatch between processing capacity and available material. According to the International Energy Agency’s Global EV Outlook 2026, China accounts for more than 85% of global battery material recovery capacity. Yet global capacity substantially exceeds the supply of material available for recycling, leaving some companies struggling to secure enough. 

Globally, most material currently entering recycling comes from battery and component manufacturing scrap, while many vehicle batteries deployed in recent years remain in use.

This makes reliable collection channels as important as processing plants. Used batteries are dispersed across repair shops, vehicle dismantlers and other businesses. Consistent collection arrangements that meet regulatory requirements are needed to bring these resources into the recycling system.

Chongqing automakers’ sales and after-sales networks provide a foundation for organizing collection. The initiative supports setting up collection points at vehicle dealerships, repair shops, dismantling businesses and existing recycling sites.

Information published by China’s Ministry of Industry and Information Technology lists battery collection points associated with Chongqing-based automaker Avatr in Fujian, Hubei, Guizhou and other provinces and municipalities. Recycling operations also involve safe temporary storage, compliant transport and subsequent resource recovery.

Testing and assessment help determine how batteries can safely proceed to further treatment. Batteries vary in remaining capacity, damage and safety condition. Chongqing plans to establish testing points at after-sales technical centers, specialized laboratories and other facilities to conduct capacity tests, visual inspections and risk assessments.

Commercially, recycling does not guarantee a profit. The International Energy Agency notes that the relatively low value of recoverable materials in lithium iron phosphate batteries affects recycling economics. 

It also discusses a model in which clients pay a processing fee while retaining ownership of the recovered materials. For recyclers, how the costs of collection, testing, storage, transport and processing are shared will affect the viability of their operations.

Chongqing previously set a goal of extending its NEV battery collection network to 90% of its districts and counties by 2027. Together with the latest initiative, this points to closer coordination between collection, testing and transport, supported by digital platforms that track batteries’ origins and destinations to provide a reliable foundation for resource recovery.