SUNWODA(SZ:300207) Shen Zhen Shang Bao·2025-12-08 16:52Core Insights - The battery recycling industry presents significant economic value and social benefits, with Shenzhen-based company XINWANDA demonstrating that recycling 1,000 tons of battery materials can reduce coal consumption by 7,000 tons and save nearly 10 million yuan [1][2] - By 2025, China's retired power battery volume is expected to reach 820,000 tons, and by 2028, it will exceed 4 million tons, with the industry value surpassing 280 billion yuan [1][4] Group 1: Company Developments - XINWANDA has established a specialized recycling materials company in 2023, marking a new phase of professional and large-scale operations in battery recycling [1][2] - The company has partnered with Southern University of Science and Technology to create a joint laboratory focused on battery recycling technology and the development of recycled materials [2] - XINWANDA's new recycling base in Tengzhou, set to be completed in November 2025, will feature fully automated production lines for efficient battery component separation and resource utilization [2] Group 2: Industry Trends - The battery recycling industry is characterized by high value and high barriers to entry, with current overall capacity utilization being low, necessitating technological upgrades [2] - The market for retired batteries is expanding, with over 192,300 related companies registered in China as of October 2023, and annual registrations exceeding 40,000 from 2022 to 2024 [5] - China's reliance on imports for key battery materials like cobalt and lithium exceeds 70%, highlighting the importance of recycling to ensure resource security [5] Group 3: Policy and Market Support - The Chinese government has implemented a multi-layered policy framework and subsidy mechanisms to promote the standardized development of the battery recycling industry [5] - As part of the incentive structure, a subsidy of approximately 42,000 yuan per bus is provided for replacing power batteries in urban public transport, aimed at stimulating the retired battery market [5]