China unveils plan to boost battery, metal recycling by 2030

China has unveiled ambitious plans to significantly expand recycling of end-of-life batteries, metal scrap and renewable energy components by 2030 as part of a new five-year program aimed at decarbonizing its industrial sector.

In a statement released July 31, China's official press agency said the road map — published by the Ministry of Industry and Information Technology — sets specific volume targets for recycling and the use of secondary raw materials. It also outlines measures to make steel and non-ferrous metal production more environmentally sustainable.

As batteries reach the end of their life cycle, production offcuts or used batteries can be collected, dismantled, and shredded to produce a substance known as black mass. This black mass can then be processed to extract valuable raw materials, including lithium, cobalt, and nickel. Recycling black mass is increasingly vital as a supplement to the supply of virgin materials and to reduce the carbon footprint of the battery supply chain.

The national road map calls for recycling more than 1 million metric tons of spent traction batteries annually by 2030 with recovered materials expected to meet 10%-15% of the raw material demand for new traction battery production.

The plan also targets a broader increase in the use of secondary raw materials. By 2030, the government aims to raise annual secondary utilization to 510 million mt, from 380 million mt in 2025. Within that total, annual production of recycled non-ferrous metals is targeted at 25 million mt, while steel scrap recovery and processing is expected to reach 300 million mt/year.

The road map further sets recycling goals for end-of-life components from the renewable energy sector, including solar and wind installations. By 2030, China aims to recycle about 80,000 mt of photovoltaic modules and 170,000 mt of wind turbine rotor blades annually.

Beyond expanding recycling volumes, the plan emphasizes more efficient energy use in the metals sector, including greater use of renewable electricity in energy-intensive processes such as electrolytic aluminum production, as part of efforts to reduce the industrial carbon footprint. Goals include cutting energy consumption per unit of value added by major industrial enterprises by more than 10% and establishing 500 "zero-carbon factories" by 2030.

The statement also said China will "build green computing facilities in regions with abundant renewable energy resources, accelerate technological upgrading and application expansion in key sectors like new energy vehicles, new energy equipment and new-type energy storage; and expand the use of clean, low-carbon hydrogen in the industrial and transport sectors."

Platts, part of S&P Global Energy, assessed Chinese lithium iron phosphate (LFP) black mass at 6,000 yuan/mt ($888.40/mt) per percent lithium DDP China on Aug. 3, stable day over day and 300 yuan/mt lower week over week.