Xiangyang transit operator sells retired bus batteries at 119% premium

Xiangyang Public Transport Group concluded an auction for a second batch of retired power batteries on November 5 at the Yangtze Ecological Environment Rights Trading platform. The disposal of batteries from 125 electric buses generated nearly 3 million yuan in revenue.

The auction saw high competition, with the final transaction price reaching 13,850 yuan per ton, a 119.49% premium over the assessed value of 6,310 yuan per ton. The high recovery value is tied to the composition of the batteries, which are primarily lithium iron phosphate (LFP), making them valuable for lithium extraction despite market price fluctuations for lithium carbonate.

This transaction reflects a broader trend as China's first generation of mass-market electric buses reaches the end of their 5-to-8-year battery life cycle. With domestic battery retirement volumes expected to exceed one million tons in 2026, the industry is scaling up recycling capabilities. Hubei province has established significant regional infrastructure to handle the processing of these materials, mirroring similar market activity seen recently in Huangshi.