In recent years, the national recycling industry policy has been gradually refined, the battery recycling business model is becoming more mature, and the scale of the industry continues to expand. Industrial chain enterprises with a first-mover advantage and master waste battery channel resources and battery recycling technology are expected to be the first to benefit.
The Zhitong Finance App learned that Guotai Junan released a research report saying that in recent years, the national recycling industry policy has been gradually refined, the battery recycling business model is becoming more mature, and the scale of the industry continues to expand. Industrial chain enterprises with a first-mover advantage and master waste battery channel resources and battery recycling technology are expected to take the lead in benefiting and opening up room for growth. Recommended targets: Ningde Times (300750.SZ), Zhongwei (300919.SZ), Zhenhua New Materials (688707.SH); beneficiaries: Grimmie (002340.SZ), Tianqi (002009.SZ), and Huayou Cobalt (603799.SH).
Guotai Junan's main views are as follows:
Further policy guidance to accelerate the healthy development of the recycling industry
Recently, the State Council issued the “Action Plan to Promote Large-scale Equipment Renewal and Consumer Goods Trade-in”, which clearly mentions implementing the four major actions of equipment renewal, consumer goods trade-in, recycling, and standard upgrading, supporting the replacement of old new energy buses and power batteries, speeding up research and development of residual life assessment technology for wind power, photovoltaics, power batteries, etc., promoting the gradual utilization of product equipment and key components, and improving the recycling network for waste products and equipment. The “Plan” requires that by 2027, the amount of scrapped vehicles recycled will approximately double compared to 2023, and that the share of recycled materials in resource supply will further increase.
Early power batteries are facing retirement, and the recycling market is about to expand
In 2014-2018, sales of new energy vehicles in China increased from 75,000 units to 1.256,000 units, surpassing one million units for the first time. During the same period, the installed power battery capacity increased from 3.7 GWh to 56.9 GWh, an increase of more than 15 times. If you consider that the service life of power batteries is generally 5-8 years, the state stipulates that when the capacity of automobile power batteries decays below 80% of the rated capacity, they must be forcibly recycled. As early new energy vehicles and power batteries are nearing retirement one after another, Guotai Junan believes that the power battery recycling industry is expected to usher in the first explosion period.
Environmentally friendly and economical, recycling policies help the sustainable development of the new energy industry
Guotai Junan pointed out that the battery contains various chemicals and heavy metals such as nickel, cobalt, lead, lithium, etc., and the content is higher than the average ore grade at the mining end. Used batteries can pollute soil, groundwater, and ecosystems if not properly disposed of. Implementing recycling and reuse of waste batteries can not only help reduce environmental pollution, but also increase the recycling rate of resources such as nickel, cobalt, lithium, etc., reduce China's dependence on imports of related raw materials, and promote the long-term sustainable development of the NEV industry.
Risk warning: The industrialization of battery recycling has fallen short of expectations, and the competitive landscape of the industry has intensified.