Ho Chi Minh City Pioneers Proposal to Build a Modern Electric Vehicle Battery Recycling Center: Aiming for a Circular Economy and 95% Precious Metal Recovery

Ho Chi Minh City (HCMC) – the economic locomotive of the entire country – has just taken a strategic step, demonstrating a long-term vision in the energy transition and sustainable development effort. The proposal to build an Electric Vehicle (EV) battery recycling center with a capacity of 3,000 tons/year, applying modern technology that allows for the recovery of up to 95% of precious metals, not only comprehensively addresses the environmental issue but also opens up a model circular economy for Vietnam.

The information, announced by the HCMC Development Research Institute (HCMC DRI) at a press conference on the socio-economic situation on July 24th, quickly attracted the attention of the public and experts. This proposal is not just a technical solution, but an indispensable part of the overall “green transport transition” plan that the city is striving to implement, especially the plan to convert 400,000 gasoline vehicles to EVs in the near future.

Strategic Importance: Turning Environmental Challenges into Economic Opportunities

The shift to electric vehicles is an inevitable global trend, aimed at reducing emissions and responding to climate change. However, this transition comes with a significant challenge: the disposal of used EV batteries. Without effective management and recycling solutions, hundreds of thousands of tons of waste batteries will become a huge environmental burden, especially due to the toxicity of some battery components.

Mr. Le Thanh Hai, Director of the Center for Economic Consulting and Application, under the HCMC DRI, emphasized the urgency of this proposal. According to him, EV batteries are a potential secondary “resource mine.” Batteries contain many valuable and rare precious metals such as lithium, cobalt, and manganese, which are crucial input materials for the new battery manufacturing industry.

“With current advanced recycling technology, the recovery rate for these metals can reach 90 – 95%,” Mr. Hai stated.

This is an impressive figure, placing HCMC’s proposed battery recycling center among the world’s leading modern facilities. High-efficiency recovery not only helps protect the environment by minimizing toxic waste but also brings enormous economic benefits:

• Saving national resources: Reducing dependence on natural mineral exploitation.
• Lowering the cost of new battery production: Recycled raw materials are less expensive, creating a competitive advantage for the domestic battery industry.
• Creating a sustainable circular economy model: Transforming waste into input materials, closing the product lifecycle.

The Battery’s “Second Life”: From Electric Cars to Rural Power Sources

One of the bright spots of the proposal is the maximization of the battery’s value. According to Mr. Hai, even when batteries no longer have enough capacity for EVs (typically when capacity drops below 70-80%), they can still begin a useful “second life.”

Instead of being immediately recycled, these battery packs can be repurposed as:

• Large-scale Energy Storage Systems (ESS): Used for solar or wind power plants to store energy produced during the day or when windy, and then supply it back to the grid when needed.
• Power supply for rural areas: Storing and distributing stable electricity to areas without a national grid or with a weak grid infrastructure.

This reuse solution is assessed as highly feasible and brings practical social benefits, helping to extend the economic lifespan of the batteries and optimize resource utilization efficiency.

Legal Framework and Support Mechanisms: Paving the Way for Green Industry

HCMC is not merely stopping at a proposal but is also proactively building a solid foundation to attract investment and ensure the project’s feasibility.

1. Ready Legal Framework: The 2020 Environmental Protection Law has created a clear legal framework. Specifically, starting from January 1, 2024, battery manufacturers must bear the Extended Producer Responsibility (EPR) for the collection and disposal of their products after use. Businesses can either build their own recycling plants or pay an environmental fee for the State to support compliant recycling facilities. This ensures a stable and legal supply of waste batteries for the recycling center.
2. Investment Support Mechanisms: The city commits to developing attractive support mechanisms if investors meet the standards for technology and environment. Forms of support may include:
   • Preferential loans: Reducing the initial capital burden for high-tech investments.
   • Use of the Environmental Protection Fund: Allocating capital from the fund to finance or support the project.

Mr. Le Thanh Hai expressed his hope that with HCMC’s proactive approach, Vietnam will be able to form a complete green industrial ecosystem with international-standard recycling centers within the next 10 years.

Safety and Transparency Assurance: International Standards are the Deciding Factor

To ensure the recycling process is safe, transparent, and effective, the HCMC DRI has recommended that the Department of Science and Technology take the lead, coordinating with related units to develop a detailed battery recycling plan. This plan will focus on:

• Applying strict technical standards from collection and transport to final processing.
• Ensuring fire and explosion prevention and safety throughout the entire cycle.

Regarding EV battery safety, a common concern, Mr. Hai clarified that battery technology is constantly improving, and strict fire and explosion prevention standards are applied in production and use. However, for an objective and scientific assessment, he believes that specific comparative data on the fire and explosion rates of EVs and gasoline vehicles under actual operating conditions in Vietnam is necessary.

Initiating a Green Future

The proposal to build an EV battery recycling center in HCMC is a timely and breakthrough decision, demonstrating the city’s strong commitment to economic development coupled with environmental protection. With large capacity, world-leading precious metal recovery technology, along with a clear legal framework and support mechanisms, this project is expected to become the foundational building block for the formation of a large-scale battery recycling industry in Vietnam. It not only solves the problem of battery waste but also plays a key role in ensuring the security of raw material supply for the domestic battery manufacturing sector, bringing Vietnam closer to the goal of developing a circular economy and building a sustainable green future.

Source: VOV and compiled from the internet.