As reported by CCTV Business, China has witnessed a surge in new energy vehicles, with the count exceeding 31.4 million. The first wave of power batteries, backed by an 8-year warranty, is now reaching the end of its lifespan. With the added incentive of a 'trade-in' subsidy policy, one would expect retired power batteries to experience a boom in recycling. However, the ground reality paints a different picture. Legitimate recycling enterprises are encountering hurdles in battery recovery, with law-abiding companies finding it hard to keep pace with small, unregulated workshops.

The manager of a vehicle dismantling plant in Zhejiang Province revealed that a single retired battery often becomes the center of a bidding war, with both legitimate 'white-listed' enterprises and small merchants vying for it. Unfortunately, lawful companies are unable to match the prices offered by these small workshops. These informal setups can commence operations with a mere few hundred thousand yuan, keeping their dismantling costs under 1,500 yuan. Moreover, they cut down on transaction costs by operating 'invoice-free' and can even outbid their compliant counterparts by a substantial margin of 20%-30% to secure the batteries.

A 'white-listed' enterprise based in Wuhan disclosed that a staggering 80% of the new energy vehicles they acquire arrive without their batteries, all of which have been pre-emptively removed by private individuals or unregulated workshops. These batteries can fetch a resale value of several thousand to even tens of thousands of yuan. Alarmingly, some recycling points are situated in close proximity to residential areas, with battery modules haphazardly stacked, devoid of any fire safety facilities or explosion-proof and leak-proof measures, thereby posing a significant threat to public safety.

At present, China is home to over 180,000 enterprises involved in battery recycling, a substantial portion of which are non-compliant small workshops operating in the 'gray zone.' In stark contrast to these informal setups, 'white-listed' enterprises find themselves at a disadvantage in market competition, primarily due to the hefty investments required in factory construction, technological processes, and environmental governance.