BAIC Teams With Recycling Giant to Deal With NEV Battery Scrapping
Tang Shihua
/SOURCE : Yicai
BAIC Teams With Recycling Giant to Deal With NEV Battery Scrapping

(Yicai Global) May 9 -- China's biggest battery recycler of GEM Co. will team up with auto heavyweight BAIC Group to jointly carry out recycling and re-utilization of batteries from new energy vehicles (NEVs) as part of efforts to address challenges in dealing with scrapped cars while also opening up a new environmental industry

Shenzhen-based GEM has signed a cooperation agreement with BAIC sales unit Beijing Penglong Automobile Services and Trade Co. to build a battery scrapping network in the northern Beijing-Tianjin-Hebei region, it said in a statement.

The two parties will contribute technology and capital resources for the project while also working together on product development and marketing.

GEM aims to capitalize on the rapid growth seen in China's NEV sector, which accounted for just under half of all global sales last year. Some 605,500 plug-in passenger cars were sold in China in 2017, presenting vast opportunities for GEM's recycling business. BAIC subsidiary Beijing Electric Vehicle Co. is China's largest NEV seller making the company a perfect fit for collaboration.

The partnership will leverage Beijing Penglong's existing automobile marketing network to jointly build the recycling system. Power cells collected will be batteries sent to GEM for subsequent disassembly and disposal. The process will also include a management system enabling the traceability for a battery's entire lifecycle.

The pair also plans to team up in businesses such as auto disassembly and recycling, service outlets for NEV power battery replacements and charging, battery repair, and emergency relief, the statement added.

The cooperation will help build a battery recycling channel between the company and major NEV industrial groups, which is of great significance to the company's aims of establishing the world's leading power battery recycling network.

Editor: William Clegg

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Keywords: Business Partnership , Power Battery Recovery , GEM , BAIC Group