Zhenghe Green Energy (Shenzhen) New Energy Technology Co., Ltd., a subsidiary of Zhenghe Group, today announced the official commissioning of its automated second-life (cascade utilization) battery production line at the Group's Huizhou Industrial Park. The milestone marks a significant step forward in the company's commitment to extending battery lifecycles, reducing system costs, and advancing the circular economy in the energy storage sector.

Strategic Expansion into Battery Second-Life Utilization

The newly commissioned production line represents a key pillar of Zhenghe Green Energy's integrated energy storage strategy, which spans cell manufacturing, PACK assembly, cascade utilization, and energy storage system integration. Backed by the Group's 220,000 m² industrial park and RMB 500 million manufacturing investment, the company has leveraged its deep-rooted expertise in precision manufacturing, consumer electronics, and supply-chain integration to build comprehensive capabilities across the full battery value chain-.

The cascade utilization project, which received environmental approval from the Huizhou Municipal Ecology and Environment Bureau in 2024, involves a total investment of RMB 50 million and covers approximately 2,220 square meters. The facility is designed to process 7,692 tons of retired power lithium batteries annually—exclusively lithium iron phosphate (LFP) batteries—with an estimated 6,922.8 tons per year suitable for second-life applications and the remainder responsibly outsourced for further processing-.

Advanced Technology and Proprietary Innovations

The production line incorporates cutting-edge technologies developed through Zhenghe Green Energy's in-house R&D efforts. In January 2026, the company filed two significant patents with the China National Intellectual Property Administration: a "Cascade Sorting System and Method Based on Battery Recovery Residual Energy Detection" (Publication No. CN121649147A), and a "Health Assessment System and Method for Retired Power Battery Cascade Utilization" (Publication No. CN121856844A).

The residual-energy detection system comprises multiple intelligent modules—including residual energy detection and identification, fault verification and assessment, iterative optimization sorting, and optimal solution selection—that collectively address the technical challenge of insufficient sorting accuracy in battery recycling. The health assessment system employs a multi-stage evaluation approach: preliminary full inspection of disassembled battery blocks, targeted sampling based on optimized distribution, and comprehensive health status assessment for reassembled battery packs, effectively balancing detection precision with operational efficiency.

These proprietary technologies enable Zhenghe Green Energy to accurately match retired batteries with appropriate second-life applications—from energy storage and backup power to low-speed mobility scenarios—significantly enhancing resource utilization while maintaining safety and performance standards.

Integrated Manufacturing and Quality Assurance

The cascade utilization production line operates alongside Zhenghe Green Energy's comprehensive manufacturing ecosystem at the Huizhou facility. The company's flexible PACK production lines, automated assembly systems, 5V/120A testing equipment, high-low temperature cycling chambers, weld-pull testers, metallographic inspection tools, and safety verification apparatus—including needle puncture, crush, external short-circuit, and impact testers—ensure rigorous quality control throughout the production process.

Through comprehensive process traceability, aging protocols, and safety verification procedures, Zhenghe Green Energy delivers energy storage products that are safe, consistent in performance, and highly competitive in value.

Market Significance and Industry Impact

The commissioning comes at a critical juncture for China's energy storage industry. With the country's new energy vehicle sector expanding rapidly—production and sales both exceeding 16 million units in 2025, capturing 47.9% of new car sales—the annual volume of spent power batteries is projected to surpass 1 million tons by 2030-. Second-life batteries could meet 67% of China's grid storage demand by 2050 while cutting costs by 2.5%-, underscoring the immense potential of cascade utilization in supporting the nation's energy transition.

Zhenghe Green Energy's second-life battery products are designed for deployment across residential storage, commercial and industrial storage, communication base station backup, and off-grid applications—extending battery life, reducing system costs, and maximizing resource efficiency.

Commitment to Sustainable Development

"With this production line, we are turning retired power batteries into valuable energy storage assets," said a company spokesperson. "By combining our proprietary health assessment and sorting technologies with automated manufacturing capabilities, we are not only extending battery lifecycles but also making energy storage more affordable and accessible for customers worldwide."

Zhenghe Green Energy remains dedicated to strengthening its core competencies in battery management systems, thermal management, safety protection, quality traceability, and cascade utilization, delivering safe, reliable, flexible, and cost-effective energy storage solutions to customers across the globe.

About Zhenghe Green Energy (Shenzhen) New Energy Technology Co., Ltd.

A subsidiary of Zhenghe Group headquartered in Huizhou, Guangdong, Zhenghe Green Energy is focused on the R&D, manufacturing, and solution delivery of energy storage systems. Leveraging the Group's 220,000 m² industrial park and RMB 500 million manufacturing investment, the company offers comprehensive capabilities spanning cell manufacturing, PACK assembly, cascade utilization, and system integration. Established in March 2026, the company serves residential, commercial, telecom, and off-grid customers with safe, reliable, and cost-effective energy storage products and solutions.