HCM City has proposed construction of an electric vehicle (EV) battery recycling center with an annual capacity of 3,000 tons.

The initiative is part of a broader plan to transition to electric vehicles, utilizing modern technology that can recover up to 95% of valuable metals.

Mr. Le Thanh Hai, Director of the Center for Economic Application and Consultation, under the HCMC Institute for Development Studies, was quoted by Radio the Voice of Vietnam as saying that this proposal is tied to the city's plan to transition 400,000 gasoline-powered vehicles to electric ones.

According to him, EV batteries contain many valuable and rare-earth metals, such as lithium, cobalt, and manganese. With today's advanced recycling technologies, the recovery rate for these metals can reach 90–95%. Recycling is not just an environmental protection solution, but it also helps conserve national resources, lower the cost of new battery production, and establish a sustainable circular economy model.

In addition to recycling, Mr. Hai noted that batteries no longer powerful enough for EVs can still embark on a useful "second life". They can be repurposed as large-scale energy storage systems for solar power plants or to supply electricity to rural areas—a solution considered highly feasible.

To bring this proposal to fruition, the city will develop support mechanisms for investors who meet the required standards, such as offering preferential loans or using the Environmental Protection Fund for financing.

Under the 2020 Law on Environmental Protection, effective January 1, 2024, battery manufacturers are responsible for the collection and processing of their end-of-life products. Companies can either build their own recycling plants or pay an environmental fee to the state, which will then support certified recycling facilities.

Mr. Hai expressed his hope that within the next 10 years, Vietnam will establish a green industrial ecosystem complete with recycling centers that meet international standards.