GEM(SZ:002340) Xin Hua Wang·2025-08-12 05:55Core Viewpoint - The strategic partnerships formed by Greeenme and other companies in the battery recycling sector highlight the growing economic value and market potential of battery recycling, driven by the increasing number of electric vehicles and rising raw material prices [1][2]. Market Outlook - The rapid development of the electric vehicle industry has led to heightened attention on the battery recycling sector, with significant material recovery rates reported, such as 99.3% for nickel-cobalt-manganese and over 90% for lithium [2]. - The supply of lithium resources is expected to remain tight, making battery recycling a crucial supplement to lithium supply, with projections indicating that by 2050, half of the materials used in batteries could come from recycled sources [2]. - The demand for power batteries has surged since 2015, leading to increased prices for cobalt, nickel, and lithium due to supply-demand imbalances, with lithium carbonate prices reaching a historical high of 503,000 yuan per ton in April 2023, up nearly 70% from the beginning of the year [2]. - The global battery recycling market is projected to exceed 150 billion yuan by 2027, as the retirement of electric vehicle batteries is anticipated to peak soon [2]. Industry Developments - The battery recycling industry has seen a significant influx of capital, with over 10,700 new registered companies in 2021, accounting for 80% of the total number of enterprises in the sector [4]. - Major players like CATL and Tianqi Lithium have accelerated their entry into the battery recycling business, with strategic partnerships being formed to enhance resource recovery and recycling capabilities [4][5]. - Companies such as Greeenme are increasing investments in battery recycling, with plans to establish a closed-loop industry chain for lithium-ion batteries and enhance recycling services for engineering machinery batteries [4][5]. Current Challenges - The battery recycling industry is still in its early stages, with a need for a more robust recycling system and regulatory framework to address issues such as informal recycling practices and inadequate pricing mechanisms [6][7]. - Recent government initiatives aim to improve the recycling system and promote collaboration across the industry, with over 10,000 recycling service points already established [7].