The lithium battery disassembly and recycling industry has entered a period of rapid development. Why do you say that? In the context of sustainable development and ecological protection, the development of the lithium battery dismantling and recycling industry can be said to be timely. On the one hand, it can effectively avoid a large number of waste batteries polluting the environment, on the other hand, it can promote the virtuous cycle and reuse of resources. It is precisely because of this dual effect that the development of the entire industry has been strongly supported by policies and enterprises.

Especially since 2020, the global demand for lithium batteries has risen year by year, and the related production materials have also risen. According to the data of the first quarter of this year, the price of lithium carbonate has soared from 250,000 yuan/ton to 530,000 yuan/ton compared with the market price of the same period at the end of last year. Under the influence, global production capacity and supply capacity have not yet recovered, and obtaining relevant resources from dismantling and recycling has become the general trend to promote the recyclable development of the industry. Industry authority assessment forecasts show that it is expected that by 2025, 2030 and 2035, the power battery recycling market space will reach 67.5 billion yuan, 138.7 billion yuan and 294.6 billion yuan, respectively. This also means that since 2020, the compound annual growth rate of the lithium battery dismantling and recycling industry has remained at a high of 18%.

Not only that, in recent years, the entire power battery recycling industry with lithium batteries as the core has developed rapidly, attracting more and more enterprises to enter and invest. According to the industry data from 2018-2021, the number of relevant enterprise registrations has increased year by year in the past three years. In 2018, there were only about 1,000 related companies, but the number jumped to 24,500 last year. Experts expect that the number of registered power battery recycling enterprises in China will exceed 30,000 for the first time this year. In the increasingly fierce competition in the industry, many large-scale enterprises have also increased project investment. In addition to Tianci materials, including Tianqi shares, Shanshan shares, Xiamen Tungsten Industry and many other head companies have recently announced similar projects.

At the same time, the guiding and promoting role of the government level can not be ignored. In recent years, various ministries and commissions have continuously introduced policies and regulations for the lithium battery dismantling and recycling industry, involving various links such as technology, management, and environmental protection, in order to guide the sustainable development of the entire industry. In particular, the launch of the Implementation Plan for Accelerating the Comprehensive utilization of industrial Resources clearly requires the improvement of the waste power battery recycling system and the cultivation of echelon and recycling backbone enterprises, which injects a strong boost to the development of the battery recycling industry.

In general, the "blue ocean" attribute of the power battery recycling market, including lithium batteries, has been very obvious, but the current development of the industry is still in the initial stage, and there has not been an absolute monopoly position of enterprises, and the pattern of the industry is "small, chaotic and scattered". Because the subdivision circuit involves multiple formats of the battery industry chain (including battery user units, production enterprises, materials industry, as well as automotive, energy and other industries), its market size will continue to expand. In a word, who can seize the opportunity to establish a competitive advantage in advance will certainly occupy a favorable position in the future lithium battery dismantling and recycling market competition.