HCMC institute proposes standardized EV battery recycling center

As part of a roadmap to transition 400,000 vehicles to electric in Ho Chi Minh City, the municipal Institute for Development Studies (HIDS) has proposed building a standardized battery recycling center or plant capable of recovering up to 95% of the valuable metals in EV batteries.

This information was shared by the institute’s Center for Economic Application Consulting at a recent press meeting on the city's socio-economic situation. The meeting addressed the issue of how to handle used batteries from 400,000 electric vehicles following HCMC’s plan to begin transitioning from gasoline vehicles in 2026.

According to the plan, the city aims to convert 80% of 400,000 ride-hailing drivers to electric motorbikes during 2026-2027, equivalent to about 320,000 drivers. By 2028, the city will continue supporting the remaining 20% with policies such as VAT exemptions, registration fee reductions, and preferential loan programs.

By 2029, HCMC will propose a complete ban on gasoline-powered two-wheelers used for transportation services, shifting entirely to electric vehicles to reduce emissions and move toward a green, clean, and smart city.

However, some major questions arise: What will happen to the massive volume of used batteries once they reach the end of their lifecycle? What environmental impacts will follow?

Addressing the concern, Le Thanh Hai, director of the center, noted that Vietnam already has an electric vehicle battery manufacturing plant in the central province of Ha Tinh with a total investment of over VND6 trillion ($229.3 million). In addition, the country has signed an agreement with Li-Cycle, a leading global electric vehicle battery recycling company.

The agreement covers solutions for the supply and research of EV battery recycling at the end of their life. If Vietnam does not invest in domestic recycling infrastructure, the partner will rely on technology from Southeast Asia or global facilities for processing.

Hai further explained that EV batteries contain rare and valuable metals such as cobalt, nickel, manganese, and lithium, making recycling essential. Battery recycling technologies today have advanced significantly, allowing for the recovery of 90-95% of battery materials. As the number of EVs increases, so does the demand for batteries - driving the growth of battery recycling efforts.

In terms of extending battery life, one current approach is repurposing end-of-life batteries for solar energy storage systems, power supply for factories, or even as materials for manufacturing solar panels - an increasingly viable technological direction.

Regarding potential risks, the Department of Science and Technology has been tasked with working with the Department of Industry and Trade to develop a detailed plan. On the matter of fire and explosion risks, there has been public debate online comparing the risks between EVs and gasoline vehicles, though clear conclusions still require verification.

Nevertheless, Hai emphasized that battery technology is advancing rapidly, with increasingly strict safety standards.

Under a directive issued on July 12, Prime Minister Pham Minh Chinh asked Hanoi to ban gasoline-powered motorbikes from its downtown core starting July 2026, part of a sweeping plan to cut emissions and improve air quality.

The ban will apply to all fossil fuel-powered motorbikes and scooters operating within Ring Road 1, which covers the central districts, including Hanoi’s Old Quarter.

By 2028, the restrictions will expand to include gasoline-powered private cars within Ring Roads 1 and 2. By 2030, the city aims to restrict all personal fossil fuel vehicles inside Ring Road 3, which forms the outer ring of the capital and connects to major highways leading to neighboring provinces.

Meanwhile, Hanoi will roll out financial incentives for companies that build or assemble EVs.