JIC Leasing recently provided financial leasing services to a Hunan Specialized, Refined, Differential and Innovative Giant Enterprise in support of its construction of a new energy waste battery disassembly recycling and treatment project, thus contributing to the development of the green recycling economy.

China's new energy vehicle production and sales figures have ranked first in the world for eight consecutive years. With the further acceleration of the global market, the demand for new energy vehicles is continuing to grow. Many upstream raw materials needed for batteries, such as lithium ore, are non-renewable resources. As a result, the life cycle management of power batteries has become a topic of great concern to the industry. Due to significant fluctuations in the price of upstream raw materials over the past two years, lithium prices have continued to oscillate, and new energy vehicles have undergone significant retail distribution. Supply stabilization has become a common concern for the industry chain, with two main methods in place to alleviate the pressure: one is to ensure the supply of upstream raw materials in order to reduce price shocks; the other is to realize the full life cycle of the batteries and increase recycling. While the former is hard to control, the latter has a wide range of sources. Thanks to their relatively high purity levels, recycled and treated metals naturally provide a huge potential market. At the same time, the concept of environmental protection is enjoying significant popular support, environmental regulations and policies are becoming increasingly stringent, and the rigid demand for "peak carbon" has put forward a definite need for life cycle recycling of new energy batteries.

Today, many of the original batteries used in new energy vehicles are entering their “retirement stage”, with the number of power batteries being recycled steadily increasing, creating a promising new market. Some data shows that over the next five years, the average annual retirement of power batteries will reach 20GWh-30GWh, or 160,000 tons, with cumulative retirement by 2028 expected to exceed 182.2GWh, or 1.33 million tons. Data also reveal that the Chinese lithium battery recycling market size was RMB 17 billion in 2021, and grew to RMB 34.39 billion in 2022. It is expected to exceed RMB100 billion around 2028. Currently, the recycling and utilization of retired power batteries in China is carried out in parallel using cascade utilization and disassembly recycling.

These two recycling methods have now been incorporated into the relevant industrial planning activities of local governments, with standardized development being further strengthened. On October 8, theChongqing Municipality Action Plan for Promoting Construction and ServiceforNew EnergyIntelligent NetworkVehicle Infrastructure (2022-2025)clearly stated that by the end of 2025, a leading power battery recycling enterprise will be cultivated, while a national scientific research and industrialization platform will be established for this form of recycling. On August 26, theFujian Province Action Plan for Promoting Green Economic Development (2022-2025)proposed to support the comprehensive utilization of bulk solid waste, promoting the recycling of power storage batteries for new energy vehicles, and supporting a suitable demonstration project to be listed as a key provincial technical transformation project.

The General Administration of Market Supervision issued itsAnnouncement on the Cascade Utilization Certification of Power Battery Products for New Energy Vehicles (Draft for Opinion). This document encourages relevant government authorities to prioritize the use of certified cascade utilization products in government investment projects, other key projects, municipal public works, and newly built projects for power batteries. It also encourages locations with suitable conditions to provide proper subsidies or loans for certified cascade utilization products, and accelerate the establishment of a resource recycling system. Insurance institutions should also be supported to develop property insurance and product liability insurance products suitable for cascade utilization, and to provide risk protection for their application and promotion. Development banks are encouraged to make good use of supplemental mortgage loan funds, green credit and green financing services, and to provide low-cost financial support.

JIC Leasing’s partner this time round is a new energy battery cathode waste material recycling and production enterprise. Engaged in the circular economy and green manufacturing as encouraged by the state, it is also a key link in the new energy industry chain. This is of great significance for moving on from traditional fossil energy-based consumption to a combination of new energy and traditional energy.

The enterprise specializes in the comprehensive recycling and utilization of lithium batteries and tungsten and cobalt waste, as well as the production and sales of battery-grade tricobalt tetraoxide, cobalt sulphate and industrial-grade lithium carbonate, nickel carbonate and other products. It is a Specialized, Refined, Differential and Innovative “Little Giant” Enterprise, and also a High-tech Enterprise, included in theWhite List for Conformance in New Energy Battery Recyclingby the Ministry of Industry and Information Technology. To date, the company has obtained more than 60 invention patents at home and abroad, and can boast a leading level of technical research and development.

The enterprise invested and constructed the 100,000T Waste Lithium-ion Power Battery Disassembly and Comprehensive Recycling Project. As a regional disposal base for spent lithium batteries in Hunan Province, it will provide favorable support for the comprehensive utilization of China's power battery recycling resources. More than 90% of the raw materials used in production are waste resources, while the waste water and waste residues in the recycling process provide maximal internal circulation. Recycled cooling water is used, with a water recycling rate of 94.6%. The project can thus ensure maximum recovery of valuable metal resources, and at the same time, meets all national standards for waste disposal. It is a key project for Hunan Province's digital, networked and intelligent transformation of the manufacturing industry launched in 2022, and has received strong support from the provincial and municipal governments.

JIC Leasing is highly focused on "financing + asset leasing", vigorously promoting the development of green and low-carbon businesses, and supporting the real economy. Practical actions have been taken to contribute to an advanced new energy industry chain, and to the sound development of the private micro-entity economy in this' rising-sun’ industry.