Used EV prices set to skyrocket in China thanks to new battery recycling rules. Should we do it in Australia?
Concerns about the values of decade-old EVs could evaporate overnight because of a pilot program initiated by the Chinese government.
The scheme is designed to recover as much as 99.6 per cent of a high-voltage battery’s nickel, cobalt and manganese from used packs.
According to CarNewsChina, the country’s General Administration of Market Supervision is drafting the new industry recycling standards that will introduce mandatory procedures on how to dismantle and recycle power packs to slash waste.
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Paving the way for a greener, more sustainable EV battery-making industry, the new processes also tlift he recovery rates of valuable lithium rocket to around 96.5 per cent.
All this means some producers like CATL are set to be less reliant on mining for battery raw materials in the future.
By standardising battery recycling, the Chinese government will manage the entire lifespan of battery production and supply, as strict regulations are already in place to govern the mining of the raw material, its supply, battery production, dismantling, chemical processing and eventual material re-use.
To ensure the new standards are adopted globally, China is reportedly engaged in talks with other regions to draft new standards for battery recycling as well as providing guidelines for second-life batteries.
Officials have also proposed re-use of lithium-ion batteries in e-bikes be banned over safety concerns.
As well as boosting safety, efficient management of used batteries and encouraging more sustainable recycling methods, it’s thought the new methods of reclaiming cobalt and lithium will see demand and prices for used batteries climb.
The knock-on effect of that will be values of used battery-electric cars will begin to rise.
In the past, car-makers such as Nissan have predicted your EV could soon inform you when the battery’s life is beyond its best and offer to buy back your car to extract the pack for either recycling or second-life use.
With stronger used values, comes substantially lower lease rates that could see EVs finally become a no-brainer for business buyers, thereby supercharging sales worldwide.
