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Chinese lead giant Henan Yuguang mulling battery plant construction

Henan Yuguang Gold & Lead Co. is looking into building a lead-acid battery production line to meet demand from the country's automotive sector, Reuters reported Oct. 16, citing Li Gui, the company's deputy chief engineer.

Henan Yuguang has yet to decide on the capacity or location of the plant. The company is China's largest lead producer and has not made batteries before, although it has 160,000 tonnes of lead recycling capacity that can process spent batteries, according to the newswire.

Henan Yuguang also aims to set up 67 lead-acid battery collection and storage stations in six Chinese provinces to form a social recycling operation, the report said.

In January, China's environment ministry said it aimed to raise the collection rate of lead-acid batteries for recycling to 70% by 2025 from about 30% in 2017. The government would reportedly offer preferential tax policies to companies that produce recycled lead from waste batteries