At the 2025 New Energy Industry Chain Expo, held by SMM Information & Technology Co., Ltd. (SMM), Lin Ziya, a lithium battery recycling analyst at SMM, spoke about the future of the industry. Her presentation, titled “Breakthrough in 2025: Analysis of Profitability in China’s Lithium Battery Recycling, and Opportunities and Challenges Under Policy Reforms,” addressed key trends and challenges.
Lin highlighted the global push for carbon neutrality, which has fueled rapid growth in the New Energy Vehicle (NEV) and Energy Storage System (ESS) markets. As a result, the demand for lithium batteries is expected to remain strong. However, the growth rate is slowing down.
She also noted that the LFP (Lithium Iron Phosphate) battery will continue to gain market share worldwide due to cost and safety advantages. Despite these positive trends, China’s lithium battery recycling sector is currently facing overcapacity. The industry is working to gradually clear this excess capacity, which is expected to improve in the coming years.
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