Changan Auto, Miracle Automation Team Up on Battery Recycling
Tang Shihua
DATE:  Apr 18 2024
/ SOURCE:  Yicai
Changan Auto, Miracle Automation Team Up on Battery Recycling Changan Auto, Miracle Automation Team Up on Battery Recycling

(Yicai) April 18 -- Chinese vehicle manufacturer Changan Automobile and automated equipment supplier Miracle Automation Engineering are linking arms on battery recycling and resource utilization with the aim of becoming a leader in the field in southwest China.

The facility will recycle scrap batteries and produce core materials for ternary and lithium iron phosphate batteries, said Miracle Automation, which has been moving into battery recycling in recent years, yesterday. The first stage of the three-phrase project should be operational by 2025.

A joint venture with a registered capital of CNY180 million (USD24.9 million), will be formed to manage the project, Wuxi-based Miracle Automation said. Miracle Automation will hold a 49 percent stake, Changan Auto 20 percent and Changan Auto’s owner China Changan Automobile Group the remainder.

The facility could also be expanded into battery cascade use, it added. No mention of investment amounts nor production capacity were given. And no details were given as to the location of the plant, although the JV will be registered in Chongqing where Changan Auto is based.

The tie-up will leverage Changan Auto’s large number of car buyers as well as its financial strengths and networks to ensure the supply of waste batteries as well as the sale of recycled battery materials that will form a closed loop for the full lifecycle of batteries, Miracle Automation said.

It will also help Miracle Automation, which mainly makes automated production equipment, draw closer to its vehicle manufacturer clients, which are one of its main customers, and improve its competitive advantages, it added.

Miracle Automation said earlier that it is teaming up with China FAW Group, another state-owned carmaker, and Japan’s Mitsui & Co., respectively, on battery recycling. It previously also inked an agreement with Stellantis’ China arm to recover and recycle decommissioned lithium batteries from the Dutch auto giant.

Miracle Automation’s stock price [SHE: 002009] was trading up 2 percent at CNY13.03 (USD1.80) as of 2 p.m. while Changan Auto’s stock [SHE: 000625] climbed 0.9 percent to CNY17.30.

Editor: Kim Taylor

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Keywords:   Joint Venture,Battery Recycle,Power Battery,Changan Auto,Miracle Automation