Recently, the First Division of Equipment Industry of the Ministry of Industry and Information Technology issued an important announcement to publicly solicit opinions on the "Replacement of Power Batteries for New Energy Urban Public Transport Vehicles (Draft for Comments)" (hereinafter referred to as the "Draft for Comments"). At the same time, the Ministry of Transport and other 13 departments jointly issued the "Transportation Large-scale Equipment Renewal Action Plan" (hereinafter referred to as the "Action Plan") also clearly stated that to encourage the renewal of old new energy buses and power batteries, require the development of power battery renewal plans according to local conditions, and guide the sale of retired power batteries to comprehensive utilization enterprises.
The introduction of this series of favorable policies marks that the replacement of power batteries for new energy buses in mainland China is gradually moving towards a new stage of standardization and systematization, and also triggers in-depth thinking from all walks of life on how to solve the current problem of retirement and renewal of old new energy bus power batteries.
The peak period of power battery retirement is coming
With the increasing severity of global climate change and environmental problems, the popularization and application of new energy vehicles, as an important choice for green travel, has gradually become a global consensus. In mainland China, the new energy vehicle industry is highly valued and strongly supported by the government. After more than ten years of rapid development, China has become the world's largest producer and seller of new energy vehicles. According to the data released by the China Association of Automobile Manufacturers, the production and sales of new energy vehicles in China will be 9.587 million and 9.495 million units in 2023, an increase of 35.8% and 37.9% year-on-year, respectively, and the market share will increase to 31.6%.
As the earliest large-scale promotion and application of new energy vehicles in mainland China, the electrification process of urban public transport has been at the forefront of the industry. Relevant data show that by the end of 2022, the number of new energy buses in mainland China has reached 542,600, accounting for 76.7% of the total number of buses, and the market penetration rate has climbed sharply from 10.8% in 2012 to 98.8%.
However, while the promotion and application of new energy buses have achieved remarkable results, the problem of power battery retirement has gradually become prominent. As one of the core components of new energy vehicles, the performance of power batteries directly affects key indicators such as driving range, power output, service life and safety of new energy vehicles. In the operation of urban public transport, due to long-term use, the power battery will deteriorate and the performance will decline, which will not only lead to a significant decline in the mileage of the vehicle, but also bring great potential safety hazards, and then can not meet the daily operation needs, and have a great impact on the efficiency, quality and safety of public transport services.
In recent years, many cities have been out of service, the reason for which is closely related to the rapid attenuation of electric bus battery performance and the reduction of driving performance. Taking Shangqiu, Henan Province and Baoding, Hebei Province as examples, these two cities were once leaders in the electrification transformation of urban buses, but around 2022, due to the fact that the first batch of new energy bus power batteries purchased in these cities have exceeded the warranty period, coupled with the high cost of battery replacement, the bus company cannot afford it, so that these vehicles can only be forced to withdraw from operation.
According to industry estimates, as of the end of 2022, 94.5% of the pure electric buses that were insured in 2014~2016 were still in service. However, considering that the average life of power batteries is usually 5~8 years, the first batch of pure electric buses put into operation in major cities across the country are gradually approaching the warranty period. In addition, although some vehicles have not yet reached the official warranty period, due to the limitations of early manufacturing technology and industry standards, a considerable number of vehicles have problems with the power battery, and it is urgent to replace the whole vehicle or upgrade the battery. This situation undoubtedly shows that the power battery of new energy buses has entered the peak period of retirement.
In this regard, industry experts generally believe that if a large number of retired electric buses are idle for a long time, the electrolyte leakage of power batteries will cause environmental pollution; If the vehicle enters the illegal dismantling channel and is only sold as scrap metal at a low price, it will cause the loss of state-owned assets; If scrapping is not enforced, the vehicle will be "remodeled" and continue to drive on the road, which will undoubtedly bring huge safety risks. Therefore, how to properly recycle and dispose of retired power batteries and promote the safe and orderly renewal and upgrading of old power batteries has become an important issue to be solved by many urban bus companies.
Promote the standardized retirement and renewal of power batteries in an orderly manner
Reasonable and efficient recycling, upgrading and upgrading of power batteries is not only related to the sustainable development of the new energy vehicle market, but also a key measure to avoid waste of resources and environmental pollution. According to the reporter's understanding, many local governments and bus companies are actively carrying out relevant work.
For example, in the disposal of scrapped electric buses, Shaoxing Public Transport Group in Zhejiang Province is actively exploring a new path, that is, from local qualified enterprises to dispose of online transaction mode. In September 2023, Shaoxing Public Transport Group entrusted Shaoxing Property Rights Trading Co., Ltd. to dispose of 229 scrapped buses by means of public auction, and the waste buses attracted 23 qualified enterprises across the country to bid. After auctioning these scrapped buses, bidders will disassemble them into parts and structures and then use them as resources. In addition to Shaoxing, Zhejiang, Jiangsu, Hunan and other places have also listed scrapped bus disposal projects, and frequently traded at a premium, achieving substantial asset appreciation.
In addition, in April this year, a passenger transport company in Beijing issued a bidding document for the replacement of power batteries for new energy buses. The document clearly pointed out that some of the pure electric buses purchased around 2016 have been unable to be used normally due to serious battery attenuation, and with the support of state-owned funds, the company allocated a budget of 40.5 million yuan to replace the power battery in batches.
According to the Ministry of Industry and Information Technology's "Interim Measures for the Management of Recycling and Utilization of Power Batteries for New Energy Vehicles", the current solutions in the industry for the update of electric bus power batteries mainly include battery residual energy testing, new power battery selection, new power batteries for old vehicles, postponement of vehicle scrapping after replacement, and recycling of old batteries. However, it cannot be ignored that there has been no official document to comprehensively and systematically regulate the entire industrial chain of new energy bus power battery replacement.
"It is precisely because of the lack of special policies and regulations, technical guidelines and operational basis for power battery replacement that there is a lack of clear guidance on issues such as 'whether to replace the battery', 'who is responsible for replacement' and 'how to replace', which hinders the renewal process of electric bus power batteries to a certain extent." The relevant person in charge of a battery company said.
In view of this, it is of great significance for the entire new energy vehicle market to calmly cope with the large-scale update of power batteries in the future by accelerating the updating of relevant supporting policies and standards to ensure the standardization of the replacement of power batteries for old new energy buses.
Recently, the Ministry of Industry and Information Technology issued the "Draft for Comments" and the Ministry of Transport and other 13 departments issued the "Action Plan", the new energy bus power battery recycling problem is a policy measure formulated for the current new energy bus power battery retirement problem.
Specifically, the "Draft for Comments" clearly puts forward specific requirements for the replacement of power batteries for new energy urban public transport vehicles. First of all, the replacement of power batteries for new energy urban public transport vehicles should be implemented under the premise of ensuring the safety of the whole vehicle, and the operating enterprises and power battery replacement service providers should follow the principle of "who advocates and who is responsible; who replaces, who is responsible", strictly implement the main responsibility of safety; Secondly, the Draft for Comments also puts forward clear requirements for the performance of power batteries used for replacement, including meeting relevant national standards.
"The introduction of the draft for comments provides a clear guiding basis for the replacement of power batteries for new energy buses." The relevant person in charge of China Automotive Technology and Research Center Co., Ltd. said that by standardizing the replacement of power batteries, it can ensure that the performance of the replaced power batteries meets the standard requirements and further ensure the safe operation of new energy buses. At the same time, the document also emphasizes the importance of the main responsibility of safety, which is conducive to promoting bus operators and power battery replacement service providers to strengthen safety management and improve the safety and reliability of power battery replacement.
In addition, the Action Plan proposes alternative actions for the electrification of urban buses, aiming to encourage the renewal of old new energy buses and power batteries, and guide the owners of retired power batteries to sell retired power batteries to comprehensive utilization enterprises. The implementation of this program will help to further promote the popularization and application of new energy buses. At the same time, by guiding the standardized recycling and reuse of retired power batteries, it can avoid pollution or waste of resources caused by power batteries, promote the orderly retirement of power batteries for new energy buses, and provide a strong guarantee for the sustainable development of the new energy vehicle industry.
The orderly retirement of power batteries is still facing constraints
Relevant government departments have successively introduced targeted policies to continue to release positive benefits to the retirement and renewal of power batteries for old new energy buses. On the one hand, the policy emphasizes the standardized management of retired power batteries, which helps to establish an orderly recycling system. In the past, due to the lack of unified standards, the recycling channels of retired power batteries were chaotic, and some batteries flowed into informal channels. The introduction of the new policy will encourage relevant enterprises to follow the prescribed processes and standards to operate, so as to ensure the legality and standardization of recycling work; On the other hand, the policy encourages qualified localities to formulate renewal plans, which will effectively promote the replacement speed of new energy buses. The updated buses will be equipped with power batteries with better performance and stronger driving performance, improving the operational efficiency and service quality of urban buses. At the same time, for the retired power battery, the policy guides it to be sold to comprehensive utilization enterprises, which will further promote resource recycling, reduce production costs, and provide new opportunities for the development of related industries.
The frequent occurrence of policies has a positive impact on the retirement of power batteries for new energy buses, but it is undeniable that the recycling and upgrading of new energy buses, especially power batteries, is a very complex and arduous system engineering.
First of all, the current power battery recycling technology in mainland China is still insufficient, mainly due to the complex structure of power batteries and the high difficulty of recycling, resulting in a long and costly recycling process. At the same time, the power battery contains a large number of toxic and harmful substances, which will cause great harm to the environment if not handled properly. This not only affects the efficiency and effectiveness of recycling, but also greatly hinders the further development of the industry. Therefore, improving the maturity and efficiency of power battery recycling technology is an urgent problem to be solved in front of relevant enterprises.
Secondly, although the domestic new energy vehicle market is developing rapidly, the power battery recycling and treatment channels are not smooth enough. On the one hand, the mainland still needs to improve the laws, regulations and standards system for power battery recycling, and there is a big gap compared with Europe, the United States, Japan and other countries and regions; On the other hand, the lack of necessary recycling technology and experience of relevant enterprises, and the imperfect recycling system, resulting in a large number of retired batteries failing to enter a reasonable recycling channel, resulting in a waste of resources. Therefore, it has become an important challenge that must be faced and solved at present to establish smooth power battery recycling and treatment channels, and strengthen policy guidance and the construction of laws and regulations.
On the whole, China's power battery recycling industry is still in its infancy, the battery recycling network supervision system is not perfect, the business model is still being explored, and the retired power battery in the recycling process, there are problems such as imperfect price mechanism and insufficient market competition, which make it very difficult to recycle the old new energy bus power battery.
In addition, there is also resistance to the renewal of power batteries. According to the national policy, the vehicle manufacturer shall be responsible for battery warranty and maintenance and replacement. However, in recent years, with the survival of the fittest in the market, many power battery manufacturers have withdrawn from the market. According to incomplete statistics, in recent years, more than 30 vehicle companies and more than 80 power battery companies have withdrawn from the market, resulting in the interruption of the power battery after-sales service of some bus companies, and some batteries within the warranty period and serious performance attenuation have fallen into the dilemma of "no door for replacement, no result for maintenance". In addition, public transport companies are currently facing problems such as a sharp decline in the main business ticket revenue, the delay of policy subsidies due to local financial constraints, and their own limited profitability is difficult to bear the high cost of battery replacement, which also restricts the replacement and upgrading of old new energy buses and their power batteries to a certain extent.
There is an urgent need to establish and improve management methods and policy systems
It is of great significance to promote the retirement of power batteries for new energy buses to stabilize the supply of resources, protect the ecological environment, and realize the healthy and sustainable development of the industry. At present, with the successive introduction of relevant policies, it has brought new opportunities for this work, and the entire industry is expected to gradually move towards standardization. For all parties in the industrial chain, they should grasp the window period and opportunity period for large-scale equipment renewal, and take practical and effective measures to ensure the safe and orderly retirement and renewal of old electric bus power batteries.
In view of the current problems and challenges, some industry insiders suggest that the government should strengthen policy guidance and legislative work, clarify the responsibility subjects, processes and standards for power battery recycling, and increase the punishment for violations of laws and regulations to increase the cost of violations. In addition, in view of the uneven distribution of recycling points and poor recycling channels of retired power batteries, it is necessary to establish a wide-ranging, efficient and convenient recycling network system, which requires the joint efforts of the government, enterprises and all sectors of society to increase investment and optimize the layout.
Technological innovation is the core of promoting the development of the recycling industry of retired power batteries. In this regard, the government should further encourage enterprises to develop advanced recycling technologies to improve recycling efficiency and safety; At the same time, we should increase investment in scientific and technological innovation and talent training, cooperate with universities and scientific research institutions, cultivate professionals with power battery recycling technology and experience, and provide strong support for power battery recycling and treatment.
"From the perspective of vehicle manufacturers and power battery companies, it is necessary to systematically plan the disposal process of scrapped electric buses, and realize the resource sharing of recycling networks, packaging containers, and logistics and transportation by building a recycling service platform; At the policy level, it is necessary to improve the supporting policies for each link of recycling, for example, in the current recycling and transportation links, the relevant definitions are still not clear enough, and there is still a lack of unified standards at the level of technical specifications. In addition, government management departments should also introduce special laws and regulations to restrain market irregularities; For recycling solution providers, they need to be committed to providing one-stop resource treatment and disposal solutions for public transport enterprises to create more cost value, so as to better realize the recycling of new energy bus resources and jointly promote the sustainable development of the industry. Ren Shifa, an expert in the commercial vehicle industry, said that through the continuous promotion of policy guidance, technological innovation and talent training, it is expected to overcome the current problems and challenges in the future and ensure the orderly progress of the retirement of new energy bus power batteries.
Text: Li Yanan Editor: Sun Weichuan Layout: Li Peiyang
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