Taiwan Passes Resource Recycling Law, Boosting Battery Recycling Industry

Taiwan has officially entered a new era of "resource circulation" with the recent passage of the Resource Recycling Promotion Act. The legislation, which moved from waste management to a focus on recycling, is expected to significantly boost the circular economy.

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The Resource Recycling Promotion Act has passed its third reading. Taiwan has officially moved from 'waste management' to a new era of 'resource circulation.'

Jin Lian Cheng, a company that recycles lead-acid batteries, sees the new law as a major benefit. General Manager Chen Jun-ming highlighted the company's focus on "urban mining" and believes its early investments in the sector will provide a competitive advantage. While the company reported a 25.2% year-on-year decrease in May revenue due to timing differences in shipments and recognition, Chen remains optimistic.

He noted that the London Metal Exchange (LME) lead price staying above $2,000 per metric ton in June provides a reference for future product pricing. Chen explained that the new law will drive downstream businesses to increase their procurement from legitimate recycling partners, fueling Jin Lian Cheng's growth. The act also prioritizes government and corporate purchasing of recycled goods, expanding market demand.

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The new law will drive downstream enterprises to proactively strengthen their procurement from legal recycling partners, boosting our company's growth momentum.

Furthermore, the law introduces an "innovation experiment sandbox" system. This allows for the testing of new recycling technologies and business models in a controlled environment, helping the industry overcome technical hurdles. Jin Lian Cheng, along with its affiliates in the Ming Fu Group, including Ming Ren Resources for lithium battery recycling, has been a pioneer in this field, forming the "Lithium Battery Circular Sustainability Responsibility Alliance" to create Taiwan's first circular economy ecosystem for retired lithium batteries.

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The amendment also adds an 'innovation experiment sandbox' system, allowing innovative recycling technologies or business models to be verified in a controlled environment, enabling businesses to help the circular industry break through technical barriers.