In recent years, China’s new trio of exports (electric vehicles, lithium batteries, and solar products) have surged, surpassing RMB 1 trillion (USD 140 billion) for the first time in 2023. The boom has spurred international expansion across related industries, especially batteries, which are central to all three segments.
China accounts for 70% of global battery production capacity, and more than a quarter of that output is exported. Whether shipped as finished products or built into EVs and energy storage systems, Chinese-made batteries are spreading worldwide.
As Lin Xiao, founder of Botree Recycling Technologies, put it:
“The country that makes the batteries knows best how to recycle them.”
As exported batteries approach the end of their lifecycle, recycling demand is set to soar. China, as the world’s largest battery producer, has a first-mover advantage in recycling technologies. Compared with recyclers overseas, Chinese companies possess deeper knowledge of production processes, technical methods, and material compositions, giving them an edge in solving recycling challenges.
But the ecosystem for waste battery recycling differs sharply between China and overseas markets. In China, batteries circulate as tradable resources, changing hands with markups at each stage. In Europe and the US, by contrast, waste batteries require paid disposal, making recycling a subsidized business. That gap means Chinese recycling firms cannot simply replicate their domestic playbook abroad.
“The essence of expanding battery recycling overseas is not about companies going out, but about technology and services going in,” Lin said. For Botree, international expansion does not mean exporting standardized products or transplanting China’s mature model. Instead, the company adapts its technological strengths to local conditions and develops tailored solutions.
Before founding Botree in 2019, Lin worked at the Chinese Academy of Sciences’ Institute of Process Engineering, specializing in green extraction technologies for waste and mineral resources. A research stint in the US shifted his focus to sustainability. Over more than a decade, he collaborated with leading Chinese and European battery materials companies, reportedly contributing to projects that covered more than 60% of China’s market. “I’ve participated in and witnessed the growth of most of China’s battery materials companies over the past ten years or so,” he said.
This mix of academic and industry experience gave him a strong grasp of Western recycling regulations and China’s manufacturing processes. As Chinese battery production and exports surged, overseas recycling demand grew in parallel, aligning with his expertise.
Botree positions itself not as a recycler but as a technology service provider. Depending on the feedstock and chemistry involved, the company designs customized solutions. These range from building production lines to supplying separation materials and providing onsite commissioning and upgrades.
The company also retrofits outdated facilities, helping clients meet new technical standards or process different feedstocks. Its integrated model delivers technology, production lines, key materials, and services.
As EVs gain traction in Europe and the US, recycling has become a regulatory requirement. The European Union’s extended producer responsibility (EPR) framework enforces the principle that producers must take responsibility for recycling. This means Chinese battery and EV exporters must comply with local rules or face penalties.
Lin admitted that founding Botree was largely driven by overseas markets: “If it weren’t for going abroad, I would have no need to leave the Chinese Academy of Sciences.” Today, its overseas clients are said to outnumber domestic ones by more than three to one.
Although Botree’s headcount is small compared with its clients, Lin said its edge lies in diversity and internationalization. Most employees hold PhDs and are trained in Japan, Europe, or the US. The team is distributed across mainland China, the US, Europe, and Taiwan.
The battery recycling chain has three stages: generation, processing, and reuse. According to Lin, China and Europe diverge at every step, making it impossible to copy domestic practices wholesale.
At the generation stage, feedstock comes from two sources: production scrap, such as rejected electrodes or cells, and retired batteries from EVs and energy storage systems. In China, both sources are roughly equal. Overseas, retired consumer batteries dominate, though volumes of production scrap and retired EV batteries are rising quickly.
Material compositions also differ. In China, lithium iron phosphate (LFP) batteries now account for nearly 90% of installations, overtaking ternary batteries and becoming the main source of retired units. In Europe and the US, ternary batteries remain dominant, with LFP adoption lagging.
Once collected, batteries are sent to recycling plants, which extract valuable metals to produce black mass and battery-grade salts. Market structures diverge here as well. In China, waste batteries can be sold, driving up prices through multiple trading stages. In Europe, strict compliance rules make disposal costly, with producers and individuals paying recyclers, though governments offset some costs with subsidies.
The cost gap is stark. Europe faces higher labor, electricity, and chemical expenses, raising per-unit recycling costs several times above China’s.
These structures shape profit models. Chinese recyclers must maximize extracted value to offset high feedstock costs, while European recyclers depend on subsidies but struggle with expensive operations.
At the reuse stage, Chinese recyclers can reintroduce recovered cathode materials into the battery supply chain, forming a closed loop. Europe lacks large-scale materials producers, leaving its supply chain incomplete. Local recyclers often stop at primary processing, supplying black mass and salts that flow back to Asia.
Recognizing these differences, Lin said international expansion must be service-led, not product-led. Botree avoids applying China’s closed-loop processes abroad. Instead, it develops localized processes and equipment, targeting unmet needs.
This positioning also reassures foreign partners, who view Botree as a collaborator rather than a competitor. The company’s overseas strategy starts with technical services to build trust, then expands into joint ventures.
One example is in Spain, where Botree partnered with Once, the country’s largest disability services organization. “We first built a demo production line in China, so they could see the actual output,” Lin said. The company secured CE certification in the European Union, trained Spanish workshop managers, and facilitated collaboration between Chinese and European teams before shipping equipment overseas. Because more than 70% of the Spanish plant’s employees are required to be disabled, Botree also became a shareholder to support operations.
In January, Botree, Once subsidiary Ilunion, and EFT-System established a joint venture to build a plant in Spain capable of processing 6,000 tons of LFP batteries annually. The EUR 10 million (USD 11.7 million) project will support local recycling and create a closed loop for LFP in Europe.
Partnering with local firms also allows Botree to access subsidies. “If a Chinese company goes abroad on its own, in an unfamiliar environment, with no clear policies and no financial support, setting up a plant is extremely difficult,” Lin said.
In June, 36Kr reported that Botree raised more than RMB 100 million (USD 14 million) in a Series B funding round. The funds will support its overseas projects and R&D.
The company is active in more than ten countries across the Asia Pacific, Europe, North America, and the Middle East. It serves major energy firms and leading battery players with consulting, technical services, equipment, and engineering projects, and has reportedly executed more than 60 projects to date.
Europe remains Botree’s priority. It is the largest export destination for Chinese EVs and batteries and the world’s second largest recycling market after China. While macro policies have slowed progress in North America and project cycles can be lengthy elsewhere, Lin said the company will continue to expand selectively, guided by a simple logic:
“Where batteries are installed, that’s where they’ll eventually be retired.”
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Feng Yaling and Yang Yuexin for 36Kr.