China’s electric-vehicle market is expanding quickly, but that success is creating a new pressure point: what to do with growing numbers of older batteries. As more EVs reach the end of their usable life, the country’s recycling and waste-handling system is being pushed to adapt to a much larger stream of battery packs.

The issue is not simply about disposal. Used EV batteries still hold economic value, which means they are unlikely to be sent straight to landfill. Packs that remain in relatively good shape can be redirected into less demanding roles, while batteries in poorer condition need to be broken down and processed for recovery.

That creates a complicated middle ground between reuse and recycling. A booming EV market brings a rising supply of retired batteries, but waste management companies have not yet fully caught up with that reality. The challenge is building enough capacity and organization to handle batteries safely and efficiently as volumes increase.

The result is a new test for China’s EV industry. Selling more electric cars solves one part of the transition, but managing batteries after their first life is becoming just as important. How quickly recycling and repurposing systems develop will shape the next stage of the market’s growth.