Amid the rapid development of the global new energy industry, the recycling and reuse of end-of-life lithium batteries have become a key link in the sustainable development of the industrial chain. As an important player in China's lithium battery recycling sector, Jiangxi Mingxin Resource Recycling Co., Ltd. has successfully unlocked the economic value of iron-containing components in batteries through its technological accumulation in the crushing and recycling of waste lithium batteries, providing a practical industrial path for the development of the circular economy.

Industry Background and Corporate Positioning

The global lithium battery recycling market is expected to reach $3.98 billion by 2025 and will continue to expand at a compound annual growth rate (CAGR) of 22.49% over the next five years. Against this backdrop, Jiangxi Mingxin Resource Recycling Co., Ltd. (a subsidiary of Mingxin Metallurgy), located in Shicheng County, Ganzhou, has become a vital force in the regional circular economy through its full-chain business layout covering the recycling, processing, and sales of waste lithium batteries. As "China's Rare Metal Valley," Ganzhou boasts unique industrial advantages in the recycling and utilization of rare and precious metals, providing a favorable industrial ecosystem for the implementation of Jiangxi Mingxin's technologies and market expansion.

Technical Processes and Iron Recycling Efficiency

Jiangxi Mingxin adopts industry-leading electrified crushing and sorting technology to process end-of-life lithium iron phosphate (LFP) batteries. This process is carried out in a nitrogen-sealed environment, which not only effectively avoids safety risks associated with traditional crushing methods but also achieves efficient separation of battery components. Although the company has not disclosed specific recycling data, industry figures show that similar processes can achieve an overall battery recovery rate of up to 98.5%, with significantly improved separation purity of metal components.

In the specific processing workflow, gravity separation is used to separate heavier metal particles from light powder materials. Subsequent pyrolysis and purification processes then enable the effective recovery of iron-containing components in the batteries. These iron-containing components are mainly derived from the cathode materials and structural parts of LFP batteries. After further treatment via hydrometallurgical processes, they can be converted into high-quality raw materials such as battery-grade iron phosphate, which are reused in the lithium battery production cycle.

Multi-Dimensional Value of Iron Recycling

The recycled iron materials demonstrate significant resource value. At the material level, the purified iron components can be directly used to produce precursors for lithium iron phosphate cathode materials, providing high-quality recycled raw materials for the lithium battery industrial chain and reducing reliance on primary mineral resources. Data shows that the lithium content in LFP batteries is approximately 2.4±0.4%, and as a key transition metal element, the recycling rate of iron directly affects the circular economy value of battery materials.

At the industrial value level, recycled iron products provide high-quality scrap iron resources for the iron and steel metallurgy industry. Compared with traditional scrap iron, iron recycled from lithium batteries features low impurity content and stable composition, making it particularly suitable for high-quality steel production. According to data from China Scrap Recycling Network, the average price of industrial scrap iron nationwide in April 2025 ranged from 1,410 to 2,250 RMB/ton. Due to its purity advantage, deeply processed iron recycled from batteries can command a higher market premium.

Cost Advantages and Market Competitiveness

Jiangxi Mingxin's iron recycling business demonstrates notable advantages in cost control. Industry data indicates that the processing cost of the advanced electrified crushing process is no more than 1,500 RMB per ton, significantly lower than the energy consumption cost of traditional pyrometallurgical recycling. In terms of raw material costs, recycled iron has a clear price advantage over primary iron. Based on current market conditions, recycled iron raw materials can help downstream enterprises reduce raw material costs by 15-20%.

Regional market differences further highlight the cost advantage of recycled iron. Data from April 2025 shows that the price of scrap iron in Guangxi Zhuang Autonomous Region reached 2,015 RMB/ton, while prices in neighboring provinces of Jiangxi, such as Hunan and Hubei, were 1,450 RMB/ton and 1,910 RMB/ton, respectively. Leveraging its geographical advantages, Jiangxi Mingxin can effectively cover the East China and South China markets, providing downstream iron and steel enterprises and battery material manufacturers with more cost-effective recycled iron raw materials.

Policy Drivers and Future Outlook

Driven by China's "dual carbon" goals and circular economy policies, the environmental value of lithium battery iron recycling has become increasingly prominent. Recycling 1 ton of LFP batteries can reduce carbon dioxide emissions by approximately 3 tons and save 1.5 tons of iron ore resources. As the scale of end-of-life batteries from new energy vehicles continues to grow, it is estimated that by 2030, recycling of LFP batteries alone will meet 15% of the global demand for iron raw materials.

Jiangxi Mingxin is seizing opportunities in the lithium battery iron recycling sector through its technological accumulation and industrial layout. In the future, with the continuous optimization of hydrometallurgical recycling processes, the purity and added value of recycled iron products will be further enhanced. It is expected to achieve a full upgrade from the current industrial raw material grade to battery material grade, injecting sustained impetus into the green development of the new energy industry.