HCMC – HCMC is planning to develop a battery recycling center to handle waste from some 400,000 electric vehicles (EV) as part of its strategy to phase out gasoline-powered vehicles after 2026.
Le Thanh Hai, director of the Economic Application Consulting Center under the HCMC Institute for Development Studies, outlined the battery waste management plan at a recent press conference on the HCMC’s socio-economic situation.
The institute proposed supporting the recycling center through policy incentives, including preferential loans or funding from the Environmental Protection Fund for qualifying projects.
Hai said EV batteries contain valuable metals like nickel, cobalt, and manganese, with current technologies able to recover 90-95% of these materials.
He noted that a battery plant in Ha Tinh Province has partnered with global battery recycler Li-Cycle on supply, recycling, and research into a potential recycling system in Vietnam.
In addition, several local firms are studying ways to extend battery life or repurpose used batteries in energy storage systems for factories and solar power projects.
The city’s vehicle transition plan targets some 400,000 ride-hailing drivers and delivery workers, who generate higher levels of greenhouse gas emissions due to their daily travel distances of 80 to 120 kilometers, which is three to four times that of an average resident.
Starting January 2026, HCMC will roll out EV support policies and stop issuing new operation permits or signing contracts for gasoline-powered vehicles. Existing drivers may continue operating but will be required to gradually shift to EV in line with the city’s transition roadmap.
Under the 2020 Environmental Protection Law, battery manufacturers must pay recycling fees unless they operate certified facilities to handle battery waste. Non-manufacturing entities are also subject to the fee, which will be used to support recycling centers.
Hai expected the city to establish a modern battery recycling center within the next decade. He urged relevant departments to promptly draft plans for battery collection and treatment, and to apply technical standards from the outset to ensure transparency and effective oversight.
