HCM City is looking into an EV battery recycling centre as part of a plan to replace motorbikes in the city with EVs. Photo plo.vn

HCM CITY – HCM City is planning to establish an electric vehicle (EV) battery recycling centre with a capacity of 3,000 tonnes per year, aiming to recover valuable metals from used batteries.

Lê Thanh Hải, director of the Centre for Economic Application Consultancy under the HCM City Institute for Development Studies, said the proposal is part of the city’s roadmap to transition from gasoline-powered motorbikes to electric.

Hải said that Việt Nam already has an EV battery manufacturing plant in Hà Tĩnh Province, with total investment reaching trillions of đồng.

The plant also has a cooperation agreement with Li-Cycle, a global leader in EV battery recycling.

The cooperation includes battery supply and recycling, and investing in a recycling facility in Việt Nam.

If it cannot immediately invest in Việt Nam, Li-Cycle can use its existing technologies in Southeast Asia and other countries to process batteries made in Việt Nam.

Hải added that EV batteries contain many precious metals such as nickel, cobalt and manganese, so the recovery and recycling of these materials is extremely necessary.

Modern battery recycling technologies can recover around 90 - 95 per cent of these valuable materials.

In addition, many businesses are investing in battery life extension technologies. One method is to reuse EV batteries with reduced performance to create power storage systems for factories, solar energy or recycling them into solar panels, he said.

The EV battery recycling centre initiative is also part of the HCM City Institute for Development Studies' proposal to replace 400,000 motorbikes from ride-hailing and delivery services with EVs over the next three years to reduce emission.

The city may consider offering preferential loans or financial support from the Environmental Protection Fund to the recycling centre.

According to the 2020 Environmental Protection Law, battery manufacturers are required to pay recycling fees.

However, if they have qualified recycling plants, the business may be owed this fee and instead be responsible for collecting and processing used batteries.

“In the next 10 years, we hope to establish a modern battery recycling centre in HCM City, which will reduce pollution risks and contribute to green growth,” Hải said.

He also recommended that the Department of Science and Technology and the Department of Industry and Trade quickly develop a detailed plan for battery collection and recycling. - VNS