Chinese lithium battery recycler GEM has teamed up with domestic state-owned carmaker BAIC to establish a used batteries collection and recycling operation.
The move is the latest response to Chinese government guidelines to ensure the prompt recycling of batteries from the country’s fast-developing new energy vehicle (NEV) market.
GEM and BAIC’s trading subsidiary, Rocar, have signed a framework agreement under which they will recover cobalt and other materials from the batteries for recycling.
In addition, the companies will build a demonstration base for “cascade use” of used NEV batteries in an economic zone in Beijing. However, the details of the project have not been released.
The companies’ recycling ‘network’ will also be opened up to BAIC-related automotive and battery firms.
BBB reported in March that German auto giant Daimler was investing in a second battery and car production plant in Beijing with BAIC, which also has battery businesses with Pride and Funeng Technology (Ganzhou).
Two months ago, GEM signed a three-year cobalt materials supply deal with Swiss mining company Glencore to help secure its EV battery supply business in China.