Resource Recycling Business Division Market Analysis Report on Retired Battery Recycling Industry

(First quarter of 2026)

The Interim Measures for the Management of Recycling and Comprehensive Utilization of Waste Power Batteries for New Energy Vehicles will officially come into effect on April 1, 2026, marking the comprehensive entry of China's retired battery recycling industry from the exploration period into the era of standardized circulation.

The new regulations explicitly prohibit non-standard hierarchical utilization, shift the industry's focus towards resource recycling, and set extremely high environmental and technological access thresholds.

(Link: Interim Measures for the Management of Recycling and Comprehensive Utilization of Waste Power Batteries for New Energy Vehicles)

As a supplier of retired battery recycling equipment, our company is at the intersection of policy dividends and technological reshuffling. The withdrawal of non compliant production capacity and the expansion of regular military production have given rise to an urgent demand for high-efficiency, low-energy consumption, and fully automated recycling equipment.

Given the current competitive landscape of the industry market and the lack of significant changes in the research results of our business unit in the second half of 2025, this report will no longer elaborate on the conventional market situation, but instead focus on the trend of compliance capacity explosion under the reshaping of new regulations, the evolution of customer profiles dominated by large state-owned enterprises and industrial giants, and the resulting changes in core process preferences (high value, low carbonization, digitalization). Aiming to deeply analyze the competitiveness of our department's three core equipment: negative pressure crushing and low-temperature drying, low consumption and precise control of high-temperature pyrolysis, and utilization of exhaust gas treatment waste heat, providing solid strategic decision-making support for the business unit to seize the 2026 compliant production line explosion dividend and win orders from top customers.

1、 Policy orientation and industry expansion demand

（1） The combined effect of strictly prohibiting illegal flow and mandatory environmental access

According to the latest Interim Measures for the Management of Recycling and Comprehensive Utilization of Waste Power Batteries for New Energy Vehicles, the state explicitly prohibits the direct or processed use of waste power batteries in areas prohibited by the state, such as electric bicycles.

This means that batteries that originally flowed into small workshops for simple assembly (hierarchical utilization) will be intercepted, and a large number of batteries will have to enter the recycling process (crushing and recycling raw materials).

This policy red line directly cuts off the previous channels for illegal small workshops to obtain huge profits through simple assembly and secondary sales to the market, resulting in a large number of retired batteries being forcibly returned to qualified formal recycling channels, thereby greatly increasing the demand for recycling production lines by recycling enterprises.

At the same time, regulations require comprehensive utilization enterprises to complete environmental impact assessments in accordance with the law, construct supporting environmental protection and safety facilities, and obtain pollutant discharge permits, otherwise they are not allowed to engage in related activities.

This kind of blockage of flow and tightening of access means that the scattered production capacity in the industry will be fully cleared. For legitimate battery recycling enterprises, the amount of retired batteries to be processed will be greatly expanded, which will directly translate into an urgent demand for high-end complete sets of equipment that can operate stably for a long time, have a large processing scale, and comply with national environmental protection and safety mandatory standards.

（2） Under the requirements of intrinsic safety supervision, there is a pressing need for equipment that generates negative pressure electric fragmentation

The legal bottom line of "ensuring production safety and preventing further pollution" established in Article 6 of the new regulations has made the risk of explosion and electrolyte leakage in the physical crushing process of waste power batteries a core pain point for recycling enterprises.

The traditional post discharge crushing process has been eliminated by the market due to its extremely low efficiency and residual hidden dangers; The conventional nitrogen protection crushing in the current market faces a safety hazard of oxygen mixing due to seal attenuation during long-term continuous operation. Faced with strict regulations and mandatory constraints on intrinsic safety, the industry's process route must evolve towards higher-level standards.

Market trends indicate that recycling companies are currently experiencing a surge in demand for high-end equipment that can achieve negative pressure electric crushing. This type of equipment can completely block explosive elements from the physical source, accurately benchmarking the regulatory red line that ensures production safety.

In response to the pain point of preventing secondary pollution, crushing equipment with integrated low-temperature drying function is becoming a standard configuration for large production lines. By safely gasifying and concentrating the extraction of highly corrosive electrolytes in the front-end, not only can the leakage and pollution of electrolytes be blocked, but also the serious corrosion and life loss problems caused by high-temperature pyrolysis of materials containing a large amount of electrolytes in traditional processes can be completely solved, thereby ensuring the dual compliance of intrinsic safety and environmental protection in the front-end process.

（3） Resource high-value orientation drives the demand for precise oxygen control in pyrolysis

Based on the legislative purpose of promoting resource recycling in Article 1 of the new regulations and the definition of the entire process technology in Article 45, the logic of industry competition has undergone a qualitative change. After the comprehensive establishment of the compliance market, the profit core of recycling enterprises will shift from simple scale expansion to the ultimate pursuit of valuable metal recovery rate and black powder purity.

The traditional extensive pyrolysis process often leads to material overburning, oxidation, or incomplete decomposition of organic matter due to insufficient precision in atmosphere and temperature control, resulting in excessive black powder impurities and a significant decrease in metal value in the subsequent process. In response to the call for efficient resource utilization by regulations, the market has seen a surge in demand for pyrolysis equipment with high-precision atmosphere control and temperature control capabilities.

It is widely believed in the industry that only through strict low oxygen environment control can valuable metals such as lithium, cobalt, and nickel be prevented from oxidation and degradation while completely peeling off the organic binder of the electrode sheet.

High end pyrolysis equipment with mechanism atmosphere control and temperature control capabilities can significantly improve the sorting purity and economic value of recycled materials, and has become a key lever for recycling enterprises to achieve cost reduction and efficiency improvement in the era of strict supervision and low profit.

（4） Strict regulation drives the urgent need for deep purification and waste heat utilization

Article 18, Article 35, and Article 42 of the regulations establish a strict environmental accountability system: construction cannot begin without obtaining a pollutant discharge permit, and once punished, the qualification will be revoked in accordance with the law. This clause completely subverts the idea that some manufacturers (such as Henan Jufeng mentioned in the previous research of the Business Unit) regard environmental protection as an option, and directly upgrades the exhaust gas treatment to the criteria that determine the survival of enterprises.

 

The fluorine-containing waste gas and VOCs generated during the heat treatment process of retired power batteries must be deeply purified, which promotes the market's demand for exhaust gas treatment equipment to shift from simple configuration to performance. Faced with the high energy consumption pain point of large-scale recycling, a system with cascade waste heat utilization function has become a must-have in the industry.

Currently, recycling companies are seeking solutions that can ensure emission standards far exceed national standards while significantly reducing overall operating costs through waste heat utilization.

2、 Equipment Market Calculation and Core Customer Group Evolution

（1） The combination of retirement wave and reflux effect amplifies the compliance capacity gap

According to the latest forecast data on the retirement volume of power batteries, China's power battery retirement market is in a critical stage of transitioning from a stable period to a concentrated explosive period.

Data shows that from 2024 to 2027, the annual newly added retired tonnage will remain stable between 140000 and 180000 tons; However, starting from 2028, the market will experience a large-scale centralized retirement, with the annual new retirement volume rapidly increasing from 179000 tons in 2027 to 1.113 million tons in 2028, and surpassing 3.015 million tons in 2030, with a compound annual growth rate maintained at around 40%.

Assumption: The battery is retired in the 7th year, and 41% of the battery packs enter the recycling channel every year, with 1GWh ≈ 8300 tons

The estimated demand for 1GWh LFP battery materials is as follows:

Positive electrode material (lithium iron phosphate, LiFePO ₄): 2200-2500 tons

Negative electrode material (graphite): 1200-1500 tons

Total weight of battery=Total weight of positive and negative electrode materials/Proportion=3500T/0.425 ≈ 8235.3T, denoted as 8300T

At the same time, the implementation of the new policy has brought significant capacity squeezing effects. Industry data shows that only about 41% of battery packs enter formal recycling channels. With the implementation of new regulations, the flow of retired batteries will be strictly controlled, and a large number of informal channels will be cleared out. Retired batteries will be fully returned to formal comprehensive utilization enterprises.

According to industry standards, the annual processing capacity of a single crushing and sorting production line is 10000 tons, which means that by 2028 alone, at least 110 standard compliant production lines need to be added nationwide to operate at full capacity; By 2030, the rigid demand for standard 10000 ton large-scale complete production lines in the national market will exceed 300. This supply-demand gap will generate a huge demand for high-end recycling equipment procurement.

（2） Customer structure changes, large enterprises and state-owned asset platforms become the main force of investment and construction

The strict regulation of policies and the significant increase in retirement scale have profoundly reshaped the procurement structure of recycling equipment. The low threshold and low price competition stage dominated by small and medium-sized enterprises in the early stage of the industry has completely ended, replaced by three main customer groups with strong financial strength and emphasis on long-term compliance operation: the first type is top power battery and vehicle manufacturing enterprises (such as CATL, BYD, etc.), aiming to fulfill extended producer responsibility and build a supply chain closed loop; The second type is the top comprehensive utilization whitelist enterprises (such as GEM, Huayou Cobalt, etc.), which need to significantly expand their compliance production capacity to undertake massive amounts of recycled batteries; The third type is the central and local state-owned asset platforms represented by China Resources Recycling Group (Zhongzi Huan).

 

Especially with the strong entry of Chinese investment, the recycling of retired batteries has officially become a national strategy. As the main force of resource recycling jointly established by the State owned Assets Supervision and Administration Commission of the State Council, its core mission is to solve the long-term small scattered pain points in the industry and build a national level battery data and recycling network.

 

In the layout of its core business sector, Zihuan Battery, it not only quickly absorbed hundreds of recycling outlets across the country, but also clearly proposed extremely high technical and equipment thresholds, such as requiring the non-destructive disassembly qualification rate of injection molded battery packs to exceed 98%, and the purity of high-temperature crushing and sorting black powder to exceed 97%, greatly raising the entry barriers for equipment suppliers.

 

This group of customers, mainly consisting of central state-owned enterprises and industrial giants, not only possess strong fund allocation capabilities, but also maintain a zero tolerance bottom line thinking towards compliance risks such as environmental protection and safety. When selecting equipment, we do not simply pursue low prices for individual machines, but focus our core demands on policy compliance, carbon footprint data tracking, and ultimate metal recycling rates.

 

Faced with the huge demand for national production capacity expansion from such top customer groups, market suppliers must rely on high-end complete sets of equipment with intrinsic safety design, ultimate environmental protection closed-loop (deep purification of exhaust gas and utilization of waste heat), and high-precision pyrolysis sorting capabilities to qualify for their centralized procurement list. In the future, technology equipment suppliers that can provide complete solutions at this level are expected to deeply bind with top customers, jointly lead industry standards, and establish absolute market dominance.

 

（3） Core demands of large customer groups: high-value recycling, intrinsic safety, and low-carbon dual control

 

1. Improve metal recovery rate and recycling economy: With the approaching retirement trend of lithium iron phosphate batteries, in the current market environment where recycling profit margins are under pressure, the purity of black powder extraction directly determines the investment return rate of the production line. Therefore, there is an urgent demand in the market for pyrolysis equipment with high-precision atmosphere control and temperature control, which requires it to completely strip organic binders, eliminate impurity interference, and fundamentally improve the comprehensive economic benefits of the project by maximizing the extraction purity of extreme powder through physical processes.

 

2. Meet the bottom line requirements of intrinsic safety and environmental compliance: Environmental protection and safety are the core thresholds for large-scale project approval and construction. Considering that charged breakage can easily lead to thermal runaway and explosion, and electrolyte evaporation can cause severe corrosion and excessive emissions of equipment, the customer clearly prioritizes process safety.

 

Safe live crushing under negative pressure environment has become a necessary path for front-end processes to avoid the risk of combustion and explosion; At the same time, the entire line must be equipped with an efficient exhaust gas purification and electrolyte directional collection system to ensure that all emissions are fully superior to the national mandatory standards and completely cut off the compliance hazards of shutdown rectification.

 

3. Coping with the dual trends of carbon footprint accounting and low-carbon cost reduction: Faced with the constraints of domestic dual carbon targets and the green barriers to renewable materials under the EU Battery Act, large-scale recycling production lines will inevitably abandon traditional high energy consumption models.

 

The market's demand for equipment has evolved from a single physical treatment to a requirement for equipment to have comprehensive capabilities in carbon emission data traceability and energy internal circulation. The industry urgently needs a complete set of equipment that integrates cascade waste heat collection and feeds back the waste heat utilization of front-end processes, reduces the natural gas and electricity consumption during the operation of pressure reduction production lines, and outputs excellent low-carbon emission data performance.

 

3、 Analysis of mainstream competitor technology routes and comparison of generation differences

 

Based on the new policies and the core demands of large customer groups, there is a significant technological gap in the current market supply side, and some traditional equipment manufacturers who entered the market early are facing the risk of being quickly cleared of high-end compliant production capacity.

 

（1） Traditional weak R&D and low collaboration integrator route (taking Henan Jufeng as an example)

 

Henan Jufeng is a typical representative of the early low threshold market for power battery recycling. Its business model mainly focuses on simple integration of general-purpose single machine devices, emphasizing low cost and fast delivery, lacking the system engineering design thinking of self-developed at the bottom. When faced with strict environmental protection and customized working conditions for large customer groups, the solidification mode of one set of drawings exposed the following defects:

 

1. Crushing section: Its process uses conventional nitrogen protection as the core anti explosion method, relying on nitrogen to dilute oxygen. Essentially, it is a probability based passive protection measure. In long-term continuous operation, once seal attenuation or local oxygen accumulation occurs, it is highly likely to cause combustion and explosion, and the hidden danger cannot be eliminated from the physical source, facing the risk of violating the new safety production red line at any time.

 

2. Pyrolysis and tail gas section: In terms of end treatment, this route generally adopts a simple configuration of traditional double alkali water spray and no RTO direct discharge. This end of pipe treatment mode is prone to exceeding the standard when dealing with high concentration fluorine-containing waste gas and complex organic compounds generated by the pyrolysis of charged electrode plates. There is a lack of stable treatment capacity for highly toxic substances such as dioxins, which cannot meet the strict environmental impact assessment bottom line of regulatory projects.

 

Meanwhile, due to the lack of overall thermal design, the system is not equipped with any cascade waste heat recovery closed-loop modules. The front-end pyrolysis relies entirely on external natural gas or electricity for high energy consumption active heating, which not only has extremely low energy utilization efficiency, but also leads to high processing costs, contrary to the core demand of low-carbon cost reduction for large customer groups.

 

3. System level defects: Due to the core of its technical route being single machine integration, the equipment involved in crushing, pyrolysis, and sorting has become an information island. The entire line lacks unified underlying logic and automated collaborative control, and cannot adapt to the data collection and automatic docking requirements for batch traceability of digital ID cards under the new regulations. Not only does it lead to low overall operational efficiency of the system, but it will also expose customers to significant risks of data omission and misreporting when facing national platform traceability audits in the future.

 

Although this type of technology route has short-term appeal in terms of the initial installation price of a single machine, its essence is a low-end replication mode with a single technology path and inadequate environmental and safety standards. In the era of the new regulation cycle where compliance is survival, this route has serious shortcomings in core indicators such as intrinsic safety, low-carbon dual control, and digital integration, and is accelerating its elimination.

 

（2） High end thermal single machine route (taking Hunan Dingli Intelligent as an example)

 

Hunan Dingli Intelligent is one of the typical representatives of the current high-end equipment market for power battery recycling. Relying on the deep accumulation of its parent company Dingli Technology in the fields of powder metallurgy, carbon based materials, and advanced ceramic thermal equipment, it has strong research and development capabilities and technical barriers in high-temperature pyrolysis and calcination equipment, and is recognized as a single technology champion in the industry.

 

However, research on its actual delivery of large-scale whole line projects has found that its technical route of focusing on core single machines and neglecting whole line systems has exposed significant limitations in responding to the current trend of cost reduction and efficiency improvement in the industry.

 

1. Core advantage: Dingli Intelligent has shown outstanding performance in the research and development of thermal single machines. Its core pyrolysis equipment can achieve PPM level control of oxygen content and temperature control of ± 5 ℃. This technical indicator can maximize the stripping of adhesives and preserve valuable metal value to the greatest extent possible. In terms of absolute performance in the pyrolysis process alone, it ranks among the top in the industry and can fully meet the basic requirements of large customers for high-end processes.

 

2. Core pain point: Despite its exquisite pyrolysis process, there is a serious deviation in the thermal architecture of the entire production line. The most prominent shortcoming is that its technical route does not incorporate exhaust heat energy into the closed-loop system, and completely abandons the design of cascade waste heat reuse. The entire heating system relies heavily on external electricity or natural gas for high-intensity active heating. In continuous production, this extensive energy utilization mode not only causes huge waste of heat energy, but also leads to energy costs per ton far exceeding the industry average. In the era of low profits, it is difficult to meet the rigid demands of top customers for carbon footprint accounting and low-carbon cost reduction.

 

3. System level bottleneck: Dingli Intelligent's technological roadmap is a typical single point technological breakthrough. In the front-end fragmentation and back-end environmental protection links that are not its core business, it highly relies on external suppliers for equipment procurement and outsourcing integration. Due to the lack of a whole line design thinking starting from the entire waste battery processing process chain, it is difficult to achieve deep bottom-up linkage and process matching between each section. This type of low collaboration production line, which combines self-developed core single machines with externally purchased integrated equipment, often faces challenges such as poor interface compatibility and slow automation collaboration, resulting in a significant reduction in the overall reliability of the system operation and a significant increase in operational pressure.

 

Dingli Intelligent represents the technical route of single point performance optimization among high-end equipment manufacturers, and its core pyrolysis equipment is undoubtedly progressiveness. But in the era of new regulations and big cycles, the equipment selection logic for large customer groups has been upgraded from a single performance competition to a comprehensive consideration of the overall line economy, low carbonization, and full process coordination. The systematic lack of clean energy closed-loop utilization and integrated linkage of the entire line makes it easy to lose the comprehensive economic advantage of the entire line when facing customers who focus on ultimate cost control and long-term stable operation.

 

4、 Discussion on progressiveness of our core process and technical route

 

Driven by compliance and the economic trend of retiring million tons, recycling equipment is evolving towards high-value, refined, and low-carbon technologies. Based on the core demands of the previous large customer base and the limitations of mainstream competitor technologies, the three core systems of our business unit (negative pressure charged crushing+low-temperature drying, low consumption high-temperature pyrolysis, exhaust gas treatment+waste heat utilization) have established solid barriers in the technical route, which is in line with the current industrial upgrading trend of environmental compliance, high-value recycling, and low-carbon consumption reduction.

 

（1） Negative pressure crushing and low-temperature drying system

 

Faced with the absolute red line of "ensuring production safety" in the new regulations, the risk of combustion and explosion in the battery breakage process, and the serious corrosion caused by the direct entry of battery breakage materials containing a large amount of electrolyte into high-temperature pyrolysis furnaces, these are the core pain points for all recycling enterprises.  

 

Our business unit has systematically broken through the negative pressure charged crushing technology and successfully developed vacuum crushing and low-temperature drying equipment, overcoming the common problems in this industry in terms of process architecture.

 

By extracting oxygen from the sealed chamber, the combustion elements are completely eliminated from the physical mechanism, achieving intrinsic safety of the front-end process and helping large customers completely avoid compliance risks of production shutdown and rectification.

 

Secondly, in response to the pain points of electrolyte corrosion, the equipment uses low-temperature drying under negative pressure to remove and collect the highly corrosive electrolyte in a gaseous state in advance. By pre-treatment with pre electrolyte, the electrolyte content of the battery crushing material entering the subsequent high-temperature pyrolysis furnace is significantly reduced. Reducing the erosion of highly corrosive gases such as hydrofluoric acid on the core components of the pyrolysis furnace from the root, doubling the continuous operation life of the backend equipment, and ensuring that the purity of black powder is not affected by residual liquid interference.

 

（2） High temperature pyrolysis system

 

Faced with the massive but low profit retirement trend of lithium iron phosphate batteries, the precision of the front-end pyrolysis process directly determines the final profitability level of the entire project.

 

Traditional direct combustion or conventional heating pyrolysis furnaces, due to outdated sealing design and extensive temperature control, are prone to local overburning of materials (leading to irreversible oxidation of valuable metals) or incomplete cracking (residual binders causing adhesion between electrode powder and electrode plates). The defects of traditional craftsmanship severely lock the upper limit of subsequent purification of black powder, resulting in a significant devaluation of the output.

 

Our high-temperature pyrolysis system can control the furnace atmosphere at PPM level oxygen content and achieve precise temperature control of ± 5 ℃. In an absolutely inert and uniform thermal field operating environment, the system can execute customized step pyrolysis curves to thoroughly crack and vaporize the organic binder on the polarizer. Fundamentally eliminating the oxidation loss of core metals such as lithium, cobalt, and nickel in traditional processes, maximizing the economic value of recycled products, and creating physical conditions for the subsequent separation of ultra-high purity black powder.

 

In addition, in the thermal architecture of the entire line, our high-temperature pyrolysis system is deeply coupled with the tail gas environmental protection system, directly absorbing the high-temperature heat energy fed back by the front-end electrolyte incineration. Through extreme temperature control and internal circulation design of thermal energy, while ensuring thorough pyrolysis of materials, the active heating energy consumption of the entire production line is significantly reduced, achieving a dual competitive advantage of high value and low carbonization.

 

（3） Customized sorting linkage system

 

Article 45 of the new regulations explicitly lists "sorting" as a core statutory process for comprehensive utilization. In the current competitive landscape, industry giants represented by top companies have generally regarded high metal recovery rates as a benchmark indicator of investment returns. The current physical sorting equipment on the market is highly mature, but the industry's pain points lie in incomplete front-end powder removal and incomplete back-end sorting. Traditional processes, due to incomplete stripping of extreme powder and copper aluminum foil, even with the most expensive sorting machine, can still result in excessive copper and aluminum impurities in black powder, seriously reducing the transaction price of black powder and increasing downstream impurity removal costs.

 

In response to the current situation of this industry, our department has clarified the technical route of customized matching between core processes and sorting systems. Relying on our front-end high-temperature pyrolysis equipment to thoroughly crack the organic binder on the polarizer, the material has reached the optimal physical free state of the polarizer powder and foil before entering the sorting section, which is the core prerequisite for achieving high recovery rate. Based on the pre material status, our department customizes process routes and production capacity planning for customers, accurately evaluates and matches multi-level fine sorting systems. By flexibly integrating the front-end core process with the sorting system, the efficiency loss caused by simple integration of traditional equipment is completely broken.

 

Through our highly collaborative integration of the entire line, we can stably output high-purity black powder with extremely low copper and aluminum impurities, achieving maximum recovery of high-value components. By driving high-value delivery capabilities from a full process chain perspective, we accurately target the core demands of large customer groups for ultimate profits.

 

（4） Exhaust gas treatment and waste heat utilization system

 

Article 6 of the new regulations clearly stipulates that it is necessary to "prevent further pollution", while Article 18 makes obtaining a pollutant discharge permit a prerequisite for enterprises to legally commence work. The fluorine-containing waste gas and VOCs generated during the pretreatment and pyrolysis process of waste batteries are the core environmental risks in the continuous production of recycling enterprises.

 

Traditional and simple water spray or activated carbon adsorption processes are prone to treatment capacity penetration and emission exceeding standards under a production capacity of 10000 tons, leading to compliance risks such as production stoppage and qualification revocation for enterprises.

 

Our exhaust treatment system adopts a multi-stage purification process route. This system can efficiently decompose complex organic waste gases, and the final emission indicators are stable and better than the current mandatory national standards. It can also meet the strict environmental access requirements of developed economies such as Europe and America, and reserve technical space for future environmental standards improvement for large customers.

 

The core technological advantage of this system lies in its collaborative closed-loop design with the entire line thermal architecture. By concentrating the collection of gaseous electrolyte and organic waste gas through the front-end vacuum crushing and low-temperature drying process, they are directly introduced into the tail gas treatment unit for incineration. The large amount of heat released during the process is directed back to the front-end low-temperature dryer and the middle section high-temperature pyrolysis furnace as the main heating source through the supporting cascade waste heat recycling system.

 

Through the utilization of hazardous waste resources and the design of thermal energy self circulation, the consumption of external energy such as natural gas by the entire 10000 ton production line has been significantly reduced, achieving a substantial transformation of environmental protection facilities from pure cost investment to energy-saving and consumption reducing assets.

 

5、 Future Development Direction and Layout Suggestions for 2026

 

Through a comprehensive analysis of the policy red line, the billion dollar production capacity gap in the market, and the technological gap between competitors, the era of retired battery big cycle has ushered in a historic explosive opportunity. To further solidify our company's industry position as a leader in high-end complete equipment and accurately align with the regulatory guidance of new regulations, it is recommended to focus on the following two core paths for research and business layout in the future:

 

（1） Layout flexible intelligent disassembly, pioneering a battery recycling line with full chain traceability

 

The introduction of new regulations has completely reshaped the front-end design logic and data compliance threshold for recycling equipment. The two major pain points of "non-standard battery pack structure" and "data supervision gap" that once constrained front-end automation research and development will be fundamentally resolved through strong policy intervention.

 

1. Taking advantage of the standardization dividend, a flexible dismantling line has been established for pre research: Article 8 of the new regulations clearly requires that power battery production "should prioritize the use of standardized and easily disassembled design schemes". This mandatory industry orientation means that retired battery packs entering the recycling market in the future will have a significant convergence in physical structure.

 

Based on this trend, it is recommended to timely initiate the technical reserve of "intelligent flexible disassembly technology". Based on the standardization opportunity of front-end packaging, explore the introduction of AI visual recognition and robotic arm collaboration technology to achieve non-destructive and automated battery pack disassembly. This move can not only effectively fill the product gap in the front-end section of our department, but also seamlessly integrate with existing equipment to build a truly automatic "native integration" retired power battery recycling and pretreatment line.

 

2. Deep adaptation of digital ID cards and creation of compliance traceability control: The new regulations set extremely strict red lines in data supervision. Article 12 pioneered the "Digital Identity Card Management System", while Article 24 clearly stipulates that comprehensive utilization enterprises must accurately submit key information including unique codes within a specified period after receiving and transferring them out of the warehouse. If you refuse to report or make false reports, you will face severe administrative penalties under Article 39.

 

In response to the high pressure of data compliance that customers will face in the future, it is recommended that our department develop a "fully traceable digital control system for the entire process chain" in the complete set of equipment. Explore the deep integration of automatic scanning and dynamic weighing modules in the disassembly and feeding end, achieve precise binding between physical materials and digital ID cards, and reserve data interfaces directly connected to the national traceability information platform. By delivering the function of "one click compliance reporting of incoming and outgoing data" to customers, we aim to enhance the differentiated strength of our products in project bidding.

 

（2） Deeply cultivate the closed loop of vacuum crushing and pyrolysis, and build a solid technical barrier for safety and environmental protection

 

The new regulations have put forward a veto based admission requirement for physical safety and environmental protection in the recycling process. Our department should continue to maintain strategic determination, continuously deepen the iteration of the three core underlying technologies, and solidify the compliance lifeline of customers with absolute technical barriers.

 

1. Continuously iterating vacuum crushing technology: Article 6 of the new regulations clearly requires that comprehensive utilization activities must "fully implement safety requirements and ensure production safety".

 

In the face of the pain point that electric fragmentation can easily lead to explosion, our department should continue to deepen the iteration of negative pressure electric fragmentation technology. By continuously optimizing the cabin sealing process and controlling the ultimate vacuum degree, the combustion and explosion elements are completely eliminated from the physical root, ensuring that the customer's front-end process can achieve a safety factor far exceeding the industry average, and pass the rigorous review of emergency management departments at all levels.

 

2. Upgrading the closed loop of pyrolysis and waste heat environmental protection: Article 18 of the new regulations takes "obtaining a pollutant discharge permit" as a prerequisite for legal construction, and Article 42 explicitly stipulates that once punished for environmental protection, relevant qualifications will be revoked in accordance with the law. This means that environmental exhaust treatment has directly determined the survival of recycling enterprises.

 

Therefore, we should continue to increase investment in the research and development of the "low consumption precision controlled pyrolysis+deep purification of exhaust gas+cascade waste heat utilization" system. On the one hand, improving the purity and economic benefits of black powder through PPM level oxygen controlled pyrolysis; On the other hand, we will continue to optimize the pre extraction and high-temperature incineration processes of gaseous electrolytes to ensure that the emissions of fluorine-containing waste gas and VOCs meet the bottom line of Article 6 "Preventing Further Pollution", and provide better data than the national standard to help customers successfully obtain pollutant discharge permits. At the same time, by continuously improving the conversion efficiency of waste gas heat energy feedback for front-end drying and pyrolysis, environmental protection facilities are transformed from sunk costs to cost reduction methods, fully targeting the core demands of large customer groups for high value and low carbonization.