On February 22nd, CCTV financial channel "Positive Finance" reported on the big increase of power battery recycling price, our company as a battery recycling enterprise was concerned by CCTV financial channel, in which our business manager Cai Zepeng was interviewed.

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       Shenzhen Jie Cheng Nickel and Cobalt New Energy Technology Co., Ltd. business manager Cai Zepeng said: did not predict such a high price, from the recent shipments, the original market price is only 110%, but some downstream customers can give to 115%, 120% factor, in a kind of price increase to buy, and even grab the attitude of goods, downstream customers also have the will to lock the price in advance.

Introduction to Jiecheng New Energy

Founded in 2012, Jie Cheng New Energy is a leading enterprise in the comprehensive utilization of the whole industry chain of lithium recycling and a comprehensive enterprise in green recycling of lithium battery materials. Headquartered in Shenzhen, the company has formed one centre and two bases, which are the storage and transfer centre for waste lithium batteries in the Greater Bay Area, the Huizhou recycling industry base and the Jiangmen comprehensive utilization industry base, and several production bases in the country are under preparation for the comprehensive utilization industry park.

Jie Cheng New Energy focuses on the research and development, recycling, warehousing, processing and sales of retired power batteries and lithium battery-related waste materials for new energy vehicles. The company adopts advanced harmless treatment and recycling technology to achieve "green" recycling treatment of retired batteries.

Power battery recycling one day at a time as companies hike prices to grab goods

Single cells are dismantled from the retired battery packs of new energy vehicles. There are two types of power battery recycling, one is secondary use, which means that the individual cells are assembled and used in small energy storage batteries, for example. There is also recycling, which means that valuable metals are extracted from them for reuse.

At a power battery recycling enterprise in Ganzhou, Jiangxi, workers dismantle the batteries and then screen out the metal materials through specific recycling processes such as dry and wet methods.

Xie Fenghai, director of the marketing department of Ganzhou City, Jiangxi Province, Haopeng Technology Co., Ltd: The price of individual battery recycling has generally risen from a price level of more than 20,000 yuan last year to more than 30,000 yuan now, a price increase of nearly 50%.

In a waste battery recycling factory in Longnan, Ganzhou, Jiangxi Province, a large number of waste batteries are stacked in the raw material warehouse. The person in charge told reporters that the retired power battery recycling price is mainly related to the content of valuable metals in the battery, such as nickel, cobalt, manganese and lithium, etc. Basically, they are recycled at a discount to the market price, but currently there has been an upside down phenomenon with a discount factor of more than 100%.

Xie Fenghai, director of the marketing department of Ganzhou City, Jiangxi Province, Haopeng Technology Co., Ltd: The price of individual battery recycling has generally risen from a price level of more than 20,000 yuan last year to more than 30,000 yuan now, a price increase of nearly 50%.

In a waste battery recycling factory in Longnan, Ganzhou, Jiangxi Province, a large number of waste batteries are stacked in the raw material warehouse. The person in charge told reporters that the retired power battery recycling price is mainly related to the content of valuable metals in the battery, such as nickel, cobalt, manganese and lithium, etc. Basically, they are recycled at a discount to the market price, but currently there has been an upside down phenomenon with a discount factor of more than 100%.

      Shenzhen Jie Cheng Nickel and Cobalt New Energy Technology Co., Ltd. business manager Cai Zepeng said: did not predict such a high price, recently we have a batch of goods, the original market price is only 110%, but some downstream customers can give to 115%, 120% factor. They are all buying at a higher price, and even grabbing goods with the attitude that downstream customers will also want to lock in the price in advance.

Nickel-cobalt-lithium surge heats up battery recycling industry, high-risk hoarding risky

      What are the main reasons for the continued surge in power battery recycling prices and premium recycling prices? And what impact will it have on the power battery industry chain?

In a power battery production enterprise in Ganzhou, Jiangxi, mechanical arms are putting the cells into trays, after which a series of processes such as chemical formation, aging, gas extraction and sealing are carried out to produce finished power battery packs. The person in charge of the company said that the factory is currently producing at full capacity and the downstream demand is very strong.

China is the world's largest market for new energy vehicles. Data from the China Association of Automobile Manufacturers shows that in 2021, China's new energy vehicle sales completed 3.521 million units, up nearly 1.6 times year-on-year, ranking first in the world for seven consecutive years. Strongly driven by the demand for new energy vehicles, power battery raw materials such as nickel, manganese, cobalt, lithium and other valuable metals prices are rapidly rising, especially lithium carbonate, a year from more than 50,000 yuan per ton to about 430,000 yuan, up more than 7 times, nickel, cobalt also has more than 60% of the increase. The increase in the price of raw materials has directly led to a surge in the price of power battery recycling.

Power battery recycling prices continue to rise, bringing better profits to recycling companies. Industry insiders told reporters that from the purchase of retired power batteries, to the recycling process to sell valuable metal, to go through nearly three months of time. This allows recycling companies to eat the dividends of subsequent price increases, gross profit margins almost doubled. Stimulated by such high profits, there is no shortage of hoarding in the industry chain. However, many industry insiders have begun to worry that behind the high prices lie huge risks, and that once the price of the metals in question falls, it will be a stampede to crash the market.

      Ltd. in Ganzhou City, Jiangxi Province, general manager District Hancheng: a ton of things now have to be doubled or tripled to buy, the whole capital occupation rate is relatively high, these battery recycling enterprises are actually very worried, when the supply and demand relationship has changed, reversed, the whole market situation is downward. In the process of going down, it is also a day by day price.

Headline companies step up battery recycling as market size multiplies and competition intensifies

The high price of power battery recycling also allows many market participants to see the business opportunities, the industry has added a large number of recycling enterprises, there are many power battery manufacturers are also increasing the layout.

Enterprise data show that China's existing power battery recycling-related enterprises 36,000. Among them, a total of 24,000 new enterprises were registered in 2021, an increase of 644.3% year-on-year. Power battery enterprises such as Ningde Time, Guoxuan Hi-Tech and Fu Energy Technology have also continued to increase the layout of retired battery recycling and other fields. Industry insiders believe that the competition in the power battery recycling market is about to get white hot.

Minsheng Securities Machinery Industry Analyst Li Zhe: In 2020, the whole industry is about 4 billion yuan of market size, the compound annual growth rate in the next few years should be a few dozen percent in growth, to 2025 is expected to reach 20 billion yuan of market size.

A shares involved in power battery recycling companies have a total of 19, belonging to the upstream energy metals, battery manufacturing, environmental protection and other industries. Among them, the leading enterprise Greenmax 2021 is expected to return net profit of 866 million yuan - 990 million yuan, an increase of 110% - 140%. Industry insiders believe that in the next few years, with the rapid increase in new energy penetration, power battery disposal volume will increase year by year, the compound annual growth rate will exceed 20%, to 2035, the power battery recycling volume of the proportion, will reach 70%, the rapid growth of the industry, is expected to promote the performance of the relevant listed companies continue to grow.