Recently, Volkswagen America announced an agreement with Redwood materials to recycle the batteries of Volkswagen and Audi electric vehicles in the United States. Previously, Redwood has established similar cooperative relationships with Toyota, Ford and Volvo, and reached recycling agreements with Panasonic's Nevada plant and Amazon. Constrained by the strong market demand for lithium chemical products at this stage, the high price and other factors, car companies have accelerated the extension of the industrial chain to power battery recycling.

In recent years, the rapid rise in sales of new energy vehicles has led to a substantial increase in the demand for installed power batteries. According to the 5-8-year service life of power batteries, the peak of decommissioning power batteries of new energy vehicles is coming. It is estimated in the industry that 252000 tons of power batteries will be decommissioned in 2021 and 2373000 tons in 2030. As the prices of cobalt, nickel, lithium and other metals continue to rise under the imbalance between supply and demand, the recycling value of power batteries has increased significantly, including the overweight layout of upstream and downstream enterprises in the industrial chain such as battery factories and vehicle factories. The battery recycling market is expected to accelerate and the market space is broad.

It is estimated that the market space of the global battery recycling industry will exceed 150billion yuan in 2027.