China EV battery waste hits 400,000 tons as informal recycling surges

China's electric vehicle market is generating a massive wave of retired batteries, with annual sales of battery-powered vehicles surging from about 1 million in 2018 to more than 16 million in 2025. The country reported 400,000 metric tons of EV battery waste last year, and a joint study by researchers in China and the United States projects that figure could grow to 1.69 million metric tons in 2030 and 22.39 million metric tons by 2040. This poses a major waste-management and recycling challenge, as most used batteries flow through uncertified recyclers, leading to environmental and safety risks. In a case announced in Jiangxi Province in 2024, an uncertified company improperly dismantled 364 metric tons of waste lithium iron phosphate batteries, causing vegetation to die across 6 acres of forest and killing more than 420 cubic feet of standing timber. China began building a formal recycling system in 2018, and by 2023, certified companies had a combined annual processing capacity of 623,000 metric tons, yet they handled only about 25 percent of retired batteries. An investigation by Yicai found that more than 100 white-listed companies were no longer operating or could not be reached. Unlicensed operators can pay more for used batteries by avoiding costs for safe testing and pollution control, and they often sell used cells for unapproved applications, creating fire risks. In November, a Xiaomi SU7 electric sedan caught fire in Changzhou, Jiangsu Province, and the owner told the Sanxiang Metropolis Daily that the battery involved was an aftermarket range extender. Researchers estimate that uncertified recyclers handled nearly 270,000 metric tons of retired batteries in 2023, and without intervention, that volume could reach 1.26 million tons in 2030 and 16.79 million tons by 2040. A new national regulation took effect on April 1, 2026, requiring automakers to bear greater responsibility for collecting and recycling used batteries through approved channels. Laixiang Sun, a professor at the University of Maryland and coauthor of a study on informal recycling, said automakers and car owners must take responsibility, even if it pushes up costs. The challenge is global: Ascend Elements, a major U.S. battery recycler, filed for Chapter 11 bankruptcy protection in April 2026, and two other North American recyclers, Li-Cycle and Lithion Technologies, entered insolvency proceedings in 2025. Yan Wang, a professor at Worcester Polytechnic Institute and cofounder of Ascend Elements, noted that being first means making mistakes. Experts agree China has sufficient certified capacity, but unless Beijing prevents batteries from flowing into the informal market, the country risks repeating a pattern of rapid industrial growth followed by pollution.