China is not only the world’s largest EV market; it has also become the main global manufacturing hub for EVs and the batteries that power them. In 2024, the country accounted for more than 70% of global electric-car production and more than half of global EV sales, and firms like CATL and BYD together control close to half of global EV battery output, according to a report by the International Energy Agency. These companies are stepping in to offer solutions to customers wishing to offload their old batteries. Through their dealers and 4S stores, many carmakers now offer take-back schemes or opportunities to trade in old batteries for discount when owners scrap a vehicle or buy a new one.
BYD runs its own recycling operations that process thousands of end-of-life packs a year and has launched dedicated programs with specialist recyclers to recover materials from its batteries. Geely has built a “circular manufacturing” system that combines disassembly of scrapped vehicles, cascade use of power batteries, and high recovery rates for metals and other materials.
CATL, China’s biggest EV maker, has created one of the industry’s most developed recycling systems through its subsidiary Brunp, with more than 240 collection depots, an annual disposal capacity of about 270,000 tons of waste batteries, and metal recovery rates above 99% for nickel, cobalt, and manganese.
“No one is better equipped to handle these batteries than the companies that make them,” says Alex Li, a battery engineer based in Shanghai. That’s because they already understand the chemistry, the supply chain, and the uses the recovered materials can be put to next. Carmakers and battery makers “need to create a closed loop eventually,” he says.
But not every consumer can receive that support from the maker of their EV, because many of those manufacturers have ceased to exist. In the past five years, over 400 smaller EV brands and startups have gone bankrupt as the price war made it hard to stay afloat, leaving only 100 active brands today.
Analysts expect many more used batteries to hit the market in the coming years, as the first big wave of EVs bought under generous subsidies reach retirement age. Li says, “China is going to need to move much faster toward a comprehensive end-of-life system for EV batteries—one that can trace, reuse and recycle them at scale, instead of leaving so many to disappear into the gray market.”
