Zhitong Financial APP learned that the popularity of electric cars in recent years has become a major trend in all countries. According to Global EV Outlook 2021 Technology Report, even though global car sales fell 6 per cent during the outbreak, electric vehicle sales increased by 41 per cent. In recent years, governments have introduced a number of policies to promote the popularization of electric vehicles and help achieve long-term emission reduction targets by providing subsidies and improving supporting facilities. Tianfeng Securities pointed out that electric vehicles began to be used in 2015, and the life cycle of electric vehicle batteries is 5-8 years, so battery recycling may reach a peak.
According to Markets and Markets estimates, the global market for lithium battery recycling will be about US $3.6 billion in 2020 and will increase to US $10.7 billion in 2030, an annual increase of about 19.4%.
In the face of the potential blue ocean market, all kinds of capital have poured into the power battery recycling track. According to the Changjiang Securities Research report, the number of newly registered enterprises in China's power battery recycling industry reached 10700 in 2021, accounting for 80 per cent of the total number of enterprises. Especially since the second half of 2021, head companies such as 300750.SZ, 002709.SZ and 002340.SZ have accelerated their entry. After entering 2022, with the entry of the head lithium mining giant and related parties in the industrial chain, this track is becoming more and more popular. Take "Lithium Mine duo" as an example, Ganfeng Lithium (01772) and Tianqi Lithium Industry (09696) announced the layout of power battery recycling business in May.
In terms of related companies, there are mainly two dimensions, namely Tesla, Inc. supply chain and battery recycling.
1. Although there are a large number of Tesla, Inc. supply chain companies, most of them are in A shares. In fact, there are not many choices for Hong Kong stocks, with a little scarcity. These companies include BYD (01211), Ganfeng Lithium (01772), Fuyao Glass Industry Group (03606), Minshi Group (00425), Lijin Technology (00558), Yihe Holdings (00838) and Nice (01316).
two。 Battery recycling, mainly A-share, the market capitalization of the top five companies and in the Shenzhen-Hong Kong Stock Connect, Shanghai-Hong Kong Stock Connect transaction list is: Ningde Times (300750.SZ), Huayou Cobalt (603799.SH), Zhongwei shares (300919.SZ), Green Mei (002340.SZ) and Zhejiang Fu Holdings (002266.SZ).
In Hong Kong, with regard to the relevant policies introduced in the last Budget, the "Roadmap for the Popularization of Electric vehicles in Hong Kong" sets out the future promotion of the use of electric cars in Hong Kong and long-term policy objectives and plans. major measures include the suspension of newly registered fuel private cars in 2035. In addition, in the Clean Air Blueprint for Hong Kong, long-term objectives and measures to further improve air quality are set out, including the phased phase-out of Euro IV diesel commercial vehicles by the end of 2027.
According to the statistics of the Transport Department of Hong Kong, the number of electric private cars registered has been increasing in recent years. The number of electric private cars registered in 2018 was 11080, while the number of electric private cars registered in November 2021 has risen to 26260, which has more than doubled in the past three years. In addition, according to the EPD, in the past five years from 2017 to 2021, an average of about 24 tonnes of vehicle lithium batteries in Hong Kong were collected by locally licensed disposal facilities and shipped to suitable overseas disposal facilities for recycling. The growth of electric vehicle sales and the spillover of decommissioned battery disposal of electric vehicles in Hong Kong are expected to drive the development of the battery recycling industry and related companies.
What is worth paying attention to is that Jinyang International has many years of experience and forward-looking industry in the environmental recycling industry.It is the first company in Hong Kong to be granted an electric vehicle battery disposal license by the Environmental Protection Department, and it is also the company with the most complete license in the field of electric vehicle battery recycling. It holds a qualified license to provide electric vehicle decommissioned batteries (chemical waste) collection, transport, recycling, disposal, disassembly and export services.In the future, the company plans to dispose of nearly 6,000 metric tons of retired batteries for electric vehicles each year, which is enough to handle the entire Hong Kong market.
The company has set up its own large-scale processing base and science and technology creation center in Hong Kong, covering an area of 150000 square feet, which is divided into several different areas where different processes can be carried out, such as classification, disassembly, treatment and so on. And the use of new research and development of "echelon utilization" technology, waste into materials, recycling, extend the life cycle of electric vehicle decommissioned batteries, effective use of resources, to achieve real environmental protection.