China Minmetals and Toyota Join Forces to Establish EV Battery Recycling Company in Changsha

Recently, China Minmetals Group, a central state-owned enterprise, and Toyota China have made a significant step forward in the new energy sector by jointly investing in the establishment of Hunan Yunchu Siweipu New Energy Technology Co., Ltd. in the Xiangjiang New District of Changsha, Hunan. The company's main business includes the recycling and second-life utilization of used electric vehicle (EV) batteries, battery sales, and energy storage technology services. This marks a strong new force in China's EV battery recycling and processing industry.

The newly established company is a joint venture between Hunan Yunchu Recycling New Energy Technology Co., Ltd., a subsidiary of China Minmetals, and Toyota Motor (China) Investment Co., Ltd., as well as Minghe Industry (Shanghai) Co., Ltd., with a total investment of 100 million yuan. Located in the Wangcheng Economic Development Zone, Yunchu Recycling is a subsidiary of the Changsha Institute of Mining and Metallurgy, which is part of China Minmetals. The company is focused on the national "dual carbon" strategy, concentrating on the recycling industry of retired batteries within China Minmetals' material sector, and is committed to developing energy storage products, lithium battery second-life utilization technology, and large-scale recycling production lines and base construction for retired batteries.

It is reported that the new company, Hunan Yunchu Siweipu New Energy Technology Co., Ltd., will leverage the technical, resource, and market advantages of China Minmetals and Toyota China to create a full industrial chain from the recycling of waste batteries to second-life utilization and regenerative reuse.

Official Announcement from Toyota:

Toyota Motor Corporation (hereinafter "Toyota") has reached a strategic cooperation with China Minmetals Group Co., Ltd. (hereinafter "China Minmetals") on the second-life utilization and resource recycling of vehicle power batteries. They have also reached an agreement with the Changsha Institute of Mining and Metallurgy under China Minmetals, Hunan Yunchu Recycling New Energy Technology Co., Ltd., Hunan Changyuan Lithium Co., Ltd., and Minghe Industry (Shanghai) Co., Ltd. to jointly establish a joint venture company. This is Toyota's first joint venture project for second-life utilization of vehicle power batteries outside of Japan.

Achieving carbon neutrality is a global consensus, and China is vigorously developing renewable energy to meet the 30/60 carbon targets. A higher proportion of renewable energy in the power system puts greater demands on flexible adjustment capabilities and energy storage. On the other hand, the development of new energy vehicles (NEVs) is accelerating, and it can be foreseen that in the near future, there will be a large-scale retirement of vehicle power batteries, and the recycling and utilization of retired batteries will be an important solution to achieving the carbon neutrality goal.

Since launching the world's first hybrid model, the Prius, in 1997, Toyota has continuously worked on energy conservation, environmental protection, and resource utilization. As a leading car manufacturer, Toyota aims to achieve energy efficiency and environmental sustainability throughout the entire lifecycle of its vehicles, not only creating electric vehicles that prioritize user experience but also improving the post-treatment industry chain for power batteries, maximizing resource efficiency, and promoting sustainable industrial development. To this end, Toyota promotes a new circular energy storage system (*1) to expand its business in the integrated energy field.

To achieve this goal, Toyota has signed a joint venture agreement with China Minmetals, whose core business is metal mining, and Minghe Industry. Moving forward, Toyota will continue to strengthen cooperation with partners to jointly create a sustainable future.

(*1) New Circular Energy Storage System: This is a Toyota technology that uses retired vehicle batteries to achieve carbon neutrality. The system can mix batteries of different conditions and from different manufacturers, and once integrated into the power system, it can be used for power regulation to balance supply and demand in the grid. This not only promotes carbon neutrality but also increases the residual value of retired batteries, realizing the value chain of battery recycling → second-life utilization → resource circulation, accelerating the creation of a sustainable circular social system from both economic and ecological perspectives.

Industry Outlook:

With the rapid development of the new energy vehicle industry, the issue of power battery recycling and processing has become increasingly prominent. According to data, by the end of 2024, the number of new energy vehicles in China will reach 31.4 million, and this number will continue to grow. However, power batteries have a limited lifespan of about 8 years, which means that starting from 2024, China will face a "retirement wave" of power batteries.

In this context, the cooperation between China Minmetals Group and Toyota China is of profound significance. It will not only drive progress and application in EV power battery recycling technology but also set a model for the standardized and large-scale development of the industry. As more enterprises join and technologies continue to innovate, China’s EV battery recycling and processing industry is expected to experience broader development prospects.

Industry data shows that by 2030, China’s retired power battery volume is expected to reach 3.5 million tons.

Used power batteries have become a key part of the construction of Changsha's advanced energy storage material industry chain. Hunan Bangpu Recycling Technology Co., Ltd., located in the Ningxiang High-tech Zone, is an industry leader with an annual output value that has already surpassed 10 billion yuan. The Jinkai Recycling Power Battery High-end Raw Materials Industrial Park, located in the Wangcheng Economic Development Zone, has a total investment of 5 billion yuan. Construction of this park is in its final stages, and the company’s self-developed waste battery purification rate can reach more than 95%, which is at the industry-leading level. Phase I of the park is expected to be operational by the end of this year, with an estimated annual output value of around 2 billion yuan.

Source: Changsha Evening News, April 25, 2025， Toyota