National People's Congress Representative and Huayou Cobalt Chairman Chen Xuehua: Quickly establish a recycling system for retired power batteries

Securities Times Reporter Nie Yinghao

The new energy industry is a strategic emerging industry in China. At the 2026 National Two Sessions, NPC Deputy and Huayou Cobalt Chairman Chen Xuehua offered suggestions on topics such as high-quality development of mineral resources and recycling of retired batteries. Chen Xuehua recommended accelerating the establishment of a recycling system for lithium iron phosphate (LiFePO4) retired batteries and promoting high-quality resource recycling.

Chen Xuehua pointed out that after years of development, China’s new energy industry has become a global leader, especially in the field of lithium iron phosphate batteries, with over 99% of the world’s LiFePO4 batteries currently produced by Chinese companies. However, there are three major issues in the recycling of LiFePO4 batteries in China that need urgent solutions.

First, the commercial recycling loop for LiFePO4 batteries depends on lithium metal prices, resulting in weak profit stability; second, insufficient resource utilization of lithium iron phosphate slag leads to resource waste; third, an imminent wave of retired LiFePO4 batteries requires a modern recycling industry system to support high-quality development.

Data shows that by 2025, China’s sales of LiFePO4 batteries will reach 1,755.6 GWh, a 60.1% increase year-on-year. Among them, LiFePO4 accounts for 81.2% of installed capacity in power batteries and 100% in energy storage batteries. Currently, China is experiencing its first large-scale wave of retired LiFePO4 batteries.

In response, Chen Xuehua proposed three suggestions: First, accelerate the improvement of a responsibility system for LiFePO4 battery recycling and build a comprehensive recycling system for retired LiFePO4 batteries. This can be achieved through companies establishing their own recycling systems or encouraging cooperation with upstream and downstream enterprises to enhance recycling capacity.

Second, increase support for technological innovation in LiFePO4 recycling. Support leading enterprises to form innovation alliances with industry chains, universities, and research institutions to develop green and efficient recycling technologies, continuously reduce recycling costs, and drive the industry toward a self-sustaining commercial loop. Additionally, establish major national science and technology projects to focus research efforts on key technologies such as resource utilization of lithium iron phosphate slag, enhancing the overall value of LiFePO4 recycling industry.

Third, accelerate the establishment and improvement of standards for power battery recycling and utilization. Leverage China’s first-mover advantage and scale in the LiFePO4 industry to develop a globally competitive and influential standard system for LiFePO4 battery recycling, filling gaps in international technical standards, and using Chinese standards to support and lead global industry development.