Asia’s top tier battery recyclers are increasingly looking to expand to Europe as operating in Asia’s over supplied market becomes more challenging and Europe’s EV and battery ecosystems continually look to localise value chains. One of China’s largest battery recyclers, Huayou Cobalt, has been expanding the number of partnership agreements it has in Europe over the last few years. Most recently in December, it signed two new partnerships with German based recyclers.
Huayou Cobalt building out European partnerships
In 2023,Huayou signed a recycling technology agreement with German based lead acid battery company Hoppecke, and a feedstock supply agreement with German recycling start up tozero. In the summer of 2024, it signed a multiple-year contract for pre-treatment capacity securing with ERLOS in Germany, as well as a battery reuse partnership with ESS player Tricera Energy. While in December 2024 it signed an end-of-life battery off take agreement with Envision Greenwise and a technology development agreement with Encory, a recycling joint venture between BMW and Interzero.
These partnerships fall across the battery recycling supply chain from battery collection and reuse to pre-treatment and refining development, and R&D and potential technology licensing.

Why is Huayou expanding its reach to Europe?
Huayou’s expansion mirrors a broader trend of Chinese companies establishing a presence in Europe, including cell manufacturers, battery material producers, and EV makers. Recycling companies are now following this trajectory.
Europe has the world’s second-largest EV market, and with this, one of the world’s largest battery materials markets. Coupled with increasing demand for recycling, driven by legislation such as the Critical Raw Materials Act and the Battery Regulation, as well as the increasing numbers of end-of-life EV batteries and gigafactory scrap means there is a strong case to have a presence in Europe for Chinese recyclers.
Key read: The realities of the battery recycling market, four key challenges Chinese recyclers are facing
Partnership strategies leave room for future expansion
Partnerships provide Huayou with an opportunity to strategically expand its global presence while minimising risk and the need for substantial capital investment. By building a strong network of collaborators, Huayou lays the groundwork for potential future expansions, such as establishing its own facility in Europe, with a reliable network of partners to support its operations.
Europe’s recycling struggles
However, Europe’s recycling industry is currently facing significant challenges. Many players within the region are struggling due to intense competition for feedstock, limiting revenue potential. This issue is compounded by high operational and capital expenditure costs, as well as stringent environmental regulations, all of which erode potential profits across the sector.
Key read: China extends its vehicle trade-in policy scheme in a boost to 2025 EV sales
Huayou is not alone setting its sights on Europe
Huayou is among several leading Asian recyclers expressing interest in Europe. Other notable companies, including CATL’s recycling subsidiary Brunp, CNGR, SK Tes, Sungeel Hitech and Posco have all indicated plans to establish operations in the region. However, due to complicated market conditions timing of market entry will vary.
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Image credit: BMW Group