tech
December 19, 2025
China figured out how to sell EVs. Now it has to bury their batteries.
As early electric cars age out, hundreds of thousands of used batteries are flooding the market, fueling a gray recycling economy even as Beijing and big manufacturers scramble to build a more orderly system.
TL;DR
- Wang Lei sold his 2016 electric vehicle due to declining battery health and the desire for an upgrade.
- China has experienced an EV boom, with nearly 60% of new cars sold being electric or plug-in hybrids by late 2025.
- The aging batteries from early EVs pose a challenge for China's battery recycling industry, leading to a gray market with safety and environmental concerns.
- EV batteries are typically retired when capacity drops below 80%, with China expecting 820,000 tons of retired EV batteries in 2025.
- The number of battery recycling enterprises in China has grown significantly, but many are unregulated.
- Retired batteries are either repurposed for other uses (cascade utilization) or fully recycled to recover valuable metals.
- Illicit recycling centers often cut corners on environmental protection and safety, leading to toxic waste and fire risks.
- The Chinese government has established 'white lists' of approved recyclers, but formal recycling rates are low.
- Major EV manufacturers like CATL and BYD are offering take-back schemes and recycling solutions.
- The bankruptcy of many smaller EV brands complicates the establishment of a comprehensive end-of-life battery system.
- A comprehensive system is needed to trace, reuse, and recycle EV batteries at scale to combat the growing gray market.
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