Market may top $2 billion next year

A report compiled by three expert bodies, including the Institute of Process Engineering at the Chinese Academy of Sciences and the Chinese Research Academy of Environmental Sciences, suggests that the annual value of the nation's battery recycling sector is likely to exceed 15.6 billion yuan ($2.2 billion) next year.

Investor interest and funding have been so sensitive to the market potential that the processing capacity in the pipeline dwarfs the total output of new batteries.

Industry insiders say the government must introduce a high entry threshold to prevent excessive competition in a sector that may have to depend on subsidies to survive, and the crackdown on unlicensed processors needs to be intensified to ensure sustainable industry development.