In July 2026, China’s scrap power battery cell market continued to drift lower overall, with clear divergence across subcategories: scrap ternary and LCO battery cells pulled back persistently, while scrap LFP battery cells fluctuated in tandem with lithium carbonate prices.

This week (May 22–29), the scrap lithium battery recycling sector nationwide saw a wave of project announcements and implementations, involving more than ten provinces and cities including Guangdong, Hebei, Jiangsu, Anhui, Tianjin, Zhejiang, and Hubei. The newly added processing capacity totaled over 200,000 mt/year, covering multiple segments such as second-life application, dismantling and crushing, lithium extraction from black mass, and cathode material repair. The industry's capacity expansion entered an acceleration phase.

The following is a summary of the progress on recall events this week:

To strengthen the supervision and management of the recycling and utilization of waste power batteries from NEVs and related activities, and to promote the scientific and standardized recycling and utilization of waste power batteries, five departments, including the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the Ministry of Transport, the Ministry of Commerce, and the State Administration for Market Regulation, jointly issued the "Notice on Launching a Joint Law Enforcement Special Campaign to Regulate the Recycling and Utilization of Waste Power Batteries" today. To implement the work deployment of the "Action Plan" and in accordance with the requirements of the joint departmental regulation "Interim Measures for the Recycling and Comprehensive Utilization Management of Waste Power Batteries from NEVs," the "Notice" focuses on the prominent issues facing the recycling and utilization of waste power batteries from NEVs, takes the improvement of collaborative regulatory mechanisms as a key approach, strengthens full-chain supervision, and represents an important measure to regulate industry order.

Progress on This Week's Recycling Incidents Was as Follows:

This Week's Recycling Event Progressed as Follows: