Huayou Cobalt's recycling company Huayou Battery Recycling has started a strategic partnership with Ganzhou, Jiangxi-based Zhongtianhong Liqingyuan, a recycling and battery manufacturing company owned by the battery material company Tinci. The two companies are both involved in reuse and recycling of lithium-ion batteries while Huayou, which was one of the first five companies to be white listed by the government as approved EV battery recycler, has a significantly larger capacity. The much smaller Zhongtianhong has developed a business based on its second life batteries with a standardised arc
hitecture for ESS components in which modules previously used in EVs our installed. The packs are then rented or leased to end-customers and controlled by GPS and GPRS technology.
Our comment: Although Zhongtianhong Liqingyuan also operates a recycling line and obtain significant expertise in the field it is not too farfetched to speculate that Huayou will take a bigger part of the recycling of the two companies while Zhongtianhong's solutions for battery leasing will be used for the two companies' second life operations. It might also be a purely geographical division with Huayou focusing on the North and Zhongtianhong on the South.