Under the framework of the ‘China-Germany Traction Battery Recycling Memorandum’, the two nations will extend their existing co-operation in the world of NEVs, ‘closing the loop in industrial ecology’ as EVs enter a new stage in their product lifecycle according to Zhang Junyi, a partner with Munich-headquartered Roland Berger Strategy Consultants.

"The business path to recycle and reuse the batteries will be formulated for all the stakeholders as soon as the model projects are operating successfully," he said.

China’s NEV production volume surged to about 54,000 units in May, almost double the same month last year, according to the Chinese National Bureau of Statistics.

The inevitable need for recycling all the batteries will need battery recycling efforts which are likely to involve not only battery makers but also car manufacturers that produce NEVs in China, like Daimler and BMW, who are likely to be joined by Volkswagen, according to Zhang.

Daimler is already researching and preparing for recycling and re-using batteries in a joint venture with Chinese battery maker BYD, the BYD Daimler New Technology Company.

"All of the NEV makers, bearing long-term development in mind, are going to be responsible for sustainability, but we need to keep a close eye on how things develop," said BYD Daimler marketing director Hu Xiaoqing.