China has rapidly emerged as a global leader in battery recycling - a shift driven by a unique combination of industrial scale, policy dynamics, and market timing.

Before 2022, China’s recycling market was relatively immature. But as domestic cell production surged, so did the availability of process scrap. This scrap, often treated as hazardous waste by battery manufacturers, was accessible to recyclers at little or no cost.

At the same time, raw material prices for lithium, nickel, and cobalt were soaring, creating enormous profit margins and incentivizing rapid growth in recycling capacity.

Chinese materials companies responded by building vertically integrated operations across the battery supply chain. This allowed scrap to be directly converted into feedstock for new production - improving efficiency and reducing costs.

The result? A fast-tracked recycling ecosystem that now plays a central role in China’s battery strategy.

Hear more from Dr Rob Burrell, Research Manager at Project Blue, in this short video as he explains how China’s unique market conditions - from scrap availability to raw material pricing - enabled its rapid rise to battery recycling dominance.

Explore the strategic implications at our upcoming EV & Battery Conferenc

Join us at the Critical Materials Conference: EV & Battery 2026, taking place in Berlin, to hear more from Project Blue’s expert analysts on how China’s recycling model is reshaping global competition, supply chains, and pricing power.

Early Bird pricing ends 31 December 2025.
Secure your ticket now and stay ahead of the curve.