Battery recycling and circular economy initiatives have become crucial to the global green transition as the electric vehicle ( EV ) market expands globally. China, now a powerful person in EV power output, is today expanding its reach into the cell recycling industry, aiming to build a closed-loop supply chain.
China is now a leader in the emerging round business, which involves sharing, rent, reusing, repairing, refurbishing, and recycling existing materials and products as much as possible, thanks to this strategy, which addresses the issue of resource scarcity as well as providing a fresh competitive edge in the international green technology arena.
The essential materials for Volt batteries, such as chromium, potassium, and nickel, are limited in supply and socially expensive to extract. China has a strong foothold in the world battery supply chain thanks to its extensive control over the world’s mineral resources, as well as its substantial stakes in African cobalt mines and Latin American lithium sources.
Yet, China’s ambitions go beyond command over natural elements. China is working to reduce its emphasis on just mined nutrients while simultaneously lowering the economic impact of EV cell production by encouraging a powerful battery recycling business.
Chinese businesses like CATL and GEM Co, Ltd. are positioned in the battery recycling market by utilizing cutting-edge technologies to increase the reuse rate of crucial materials. These businesses use cutting-edge extraction techniques to recover valuable components from outdated batteries, which can then be reintegrated into the production cycle.
This strategy improves resource efficiency and reduces waste, as well as establishing a strong green image for China on the global stage. The Chinese government’s supportive policies, which include setting industry standards, offering financial support, and providing tax incentives, are further strengthening the growth of this sector, making China’s position in the global circular economy increasingly difficult to match.
In contrast, the United States and Europe have yet to create comprehensive battery recycling supply chains, which puts them at a long-term disadvantage. Western countries ‘ battery recycling efforts remain fragmented, with limited large-scale infrastructure in place.
China has the opportunity to set standards and win markets in areas that may eventually rely on China for recycled battery materials, just as they have historically relied on it for raw materials.
China’s recycling network will grow as EV adoption increases and the volume of used batteries rises, potentially making Chinese companies key partners for international companies looking to secure sustainable sources of battery materials.
China has a lot of leverage on the international stage thanks to its expanding knowledge of battery recycling. China has greater influence over the global EV supply chain and is at a disadvantage in negotiations with businesses and nations that depend on these resources because of its control over both new and recycled sources of critical minerals.
China’s emphasis on recycling and sustainable practices also aligns with its goals to be a responsible global player in climate action, a position that is crucial as green technology becomes more politicized on the global stage.
However, Western countries are increasingly wary of China’s closed-loop resource system. Particularly in the United States, concerns have been raised that China might use its influence over the recycling supply chain to increase its position of authority in green technology.
There is also growing concern that China may be able to establish standards for sustainability in ways that serve its own interests as a result of this influence.
These issues are at the crossroads between geopolitics and circular economy initiatives: even in those whose main concern is the environment, there is strong competition between the US and China.
China’s research and development in battery recycling serve as both a wise response to resource shortage and a step-by-step exploration of potential circular economy potential. The ability to close the loop on crucial resources like EV batteries will become an increasingly valuable asset as the global green transition progresses.
How countries balance the need for supply chain independence with their circular economy goals could be a key factor in the US and China’s ongoing green technology battle. The future of green technology and, consequently, the dynamics of the world’s economic power will likely be influenced by China’s involvement in battery recycling.
Lin Qin is visiting PhD students at the Liu Institute for Asia andamp; Asian Studies at the University of Notre Dame, and PhD students at the Shanghai International Studies University’s School of International Relations and& Public Affairs. Follow her on X at @Lyinn_Chin7