China's commitment to green transformation is fueling a boom in its electric vehicle (EV) battery and solar panel recycling industry in 2025. Companies are experiencing heightened demand for recycling technologies that recover valuable materials from spent batteries and retired solar panels. These materials, including lithium, cobalt, and nickel, are essential for the country's resource independence and the production of new energy technologies.
EV Battery Recycling
The number of scrapped EVs is set to reach 15-20 million in 2025, with the capacity of scrapped batteries exceeding 60 gigawatt-hours. By July 2025, new national standards are expected to streamline black mass production, enhance quality control, and secure supply chains. CATL is actively involved in battery recycling and is exploring establishing recycling operations in Europe, with its Hungary plant slated to begin production in the second half of 2025.
Solar Panel Recycling
China is also developing a comprehensive system for managing end-of-life solar panels, with a target to have a system in place by the end of 2025. As solar panel waste is forecast to climb from 2025, the country plans to speed up solar panel recycling. By 2025, the weight of retired panels will reach about 1.5 million tons.
Despite advancements, challenges remain, including the need for tighter regulations and better infrastructure to prevent illegal workshops from dominating the recycling landscape. The scarcity of raw materials like lithium, cobalt, and nickel underscores the importance of battery recycling for sustainability and resource security.