Ho Chi Minh City plans to establish a recycling facility for electric vehicle batteries.
Ho Chi Minh City (HCM City) is set to build an electric vehicle (EV) battery recycling centre with a capacity of approximately 3,000 tons per year. The aim is to recover up to 95% of valuable metals such as lithium, cobalt, manganese, nickel, and rare-earth metals from used EV batteries. This initiative is part of the city's broader plan to transition from gasoline-powered motorbikes to electric vehicles.
Partnership with Li-Cycle
The city has mentioned cooperation with Li-Cycle, a global leader in EV battery recycling, which is involved in developing recycling capabilities in Vietnam. While local recycling infrastructure remains in early stages, Li-Cycle will process batteries using facilities in Southeast Asia or other countries as needed. The partnership aims to bring advanced recycling technology to achieve a high metal recovery rate and support the development of a green, circular economy model.
Investment Support
The city also plans to support investors meeting technical standards through preferential loans and financing from the Environmental Protection Fund. This aligns with Vietnam's 2020 Law on Environmental Protection that mandates battery manufacturers to handle end-of-life battery collection and processing.
Second-Life Applications
In addition to recycling, businesses are investing in battery “second-life” applications. These include repurposing lower-efficiency batteries for large-scale energy storage in solar power plants or rural electrification, further enhancing sustainability.
Summary
The proposed EV battery recycling centre in HCM City aims to recover valuable metals from used batteries, reduce pollution risks, and contribute to green growth. It is part of HCM City's roadmap to transition from gasoline-powered motorbikes to electric vehicles, with plans to replace 400,000 gasoline-powered motorbikes with EVs over the next three years. The city also plans to ban gasoline-powered two-wheelers in the transportation sector by 2029.
This project represents a significant step toward building a green industrial ecosystem and sustainable circular economy in Vietnam over the next decade. Lê Thanh Hải, director of the Centre for Economic Application Consultancy under the HCM City Institute for Development Studies, emphasised the importance of developing a detailed plan for battery collection and recycling, recommending that the Department of Science and Technology and the Department of Industry and Trade quickly take action.
[1] HCM City to establish an electric vehicle battery recycling centre - VietnamNet Bridge [2] HCM City plans to turn 400,000 motorbikes into electric vehicles - Tuoi Tre News [3] HCM City aims to ban gasoline-powered motorbikes by 2029 - Vietnam Investment Review [4] HCM City to cooperate with Li-Cycle in electric vehicle battery recycling - VnExpress International [5] Vietnam's EV battery recycling potential - Nikkei Asia
- Ho Chi Minh City (HCM City) is partnering with Li-Cycle, a global leader in electric vehicle (EV) battery recycling, to develop recycling capabilities in Vietnam.
- This initiative involves recovering valuable metals like lithium, cobalt, manganese, nickel, and rare-earth metals from used EV batteries.
- The city also plans to support investors meeting technical standards through preferential loans and financing from the Environmental Protection Fund.
- In addition to recycling, businesses are investing in battery “second-life” applications, such as repurposing lower-efficiency batteries for large-scale energy storage in solar power plants.
- The proposed EV battery recycling centre in HCM City aims to reduce pollution risks, contribue to green growth, and align with Vietnam's 2020 Law on Environmental Protection.
- Lê Thanh Hải, director of the Centre for Economic Application Consultancy, recommends that the Departments of Science and Technology and Industry and Trade quickly develop a detailed plan for battery collection and recycling in the city.
