In 2026, the rapid popularization of lithium battery forklifts has given rise to a booming lithium battery recycling and second-life economy, which has become a core part of the forklift industry's sustainable development. As the first batch of lithium batteries for electric forklifts enter the retirement period, a complete industrial chain covering battery recycling, cascade utilization, and material regeneration has been established. This not only solves environmental problems but also creates new economic value, reduces the total cost of ownership of electric forklifts, and promotes the healthy and sustainable development of the industry.
The large-scale retirement of power batteries is the premise of the recycling economy. Since 2020, lithium battery forklifts have been widely promoted, and the first batch of 3–5 year-old batteries have gradually reached the end of their service life. It is estimated that the global scrap volume of forklift lithium batteries will increase exponentially in 2026. If these batteries are not properly recycled, they will cause environmental pollution and waste of metal resources such as lithium, cobalt, nickel, and manganese. The standardized recycling and utilization of retired batteries have become an urgent industrial demand.
Cascade utilization is the first step of battery value reuse. Lithium batteries retired from forklifts usually retain 70%–80% of their capacity, which no longer meets the high-power and high-stability requirements of forklifts but is fully suitable for low-speed and low-power scenarios such as energy storage, low-speed electric vehicles, and emergency power supplies. Through screening, recombination, and system integration, retired forklift batteries can be used in factory energy storage, peak shaving and valley filling, photovoltaic energy storage, and backup power supplies, extending their service life by 3–5 years and maximizing economic value.
Material regeneration realizes the closed-loop utilization of resources. After cascade utilization, batteries that are completely scrapped enter the material recycling stage. Through advanced processes such as pyrometallurgy and hydrometallurgy, valuable metals such as lithium, cobalt, nickel, and manganese are extracted and purified to produce battery-grade materials, which are reused in the production of new lithium batteries. This forms a closed-loop industrial chain of "production-use-scrapping-recycling-regeneration-production," reducing reliance on primary mineral resources and lowering carbon emissions in the battery life cycle.
Policy promotion and regulatory improvement drive standardized development. Governments around the world have issued laws and regulations on power battery recycling, implementing the extended producer responsibility (EPR) system. Forklift and battery manufacturers are required to undertake recycling obligations, establishing standardized recycling networks. Subsidies and tax incentives are provided for recycling and cascade utilization enterprises, guiding the industry towards standardization and scale. Strict environmental standards force informal small recycling workshops to withdraw from the market, ensuring green and safe recycling.
Manufacturers layout recycling business to build competitive barriers. Leading forklift and battery manufacturers have established professional recycling subsidiaries or cooperated with specialized recycling enterprises, building full-life-cycle management systems from battery sales to recycling. They provide users with recycling services, battery replacement, and cascade utilization solutions, enhancing customer stickiness. Some manufacturers use recycled materials to produce new batteries, launching green and low-cost battery products to gain market advantages.
The second-life economy reduces the overall cost of electric forklifts. The income from battery recycling and cascade utilization can offset part of the battery purchase cost, effectively reducing the total cost of ownership (TCO) for users. Forklift rental and operating companies can benefit from battery recycling, further improving economic benefits. The reduction of user costs will accelerate the replacement of lead-acid forklifts by lithium battery models, forming a positive cycle.
Technological innovation improves recycling efficiency and economic benefits. New technologies such as automatic disassembly, efficient extraction, and green recycling are continuously applied, reducing recycling costs and improving metal recovery rates. Intelligent battery screening and evaluation systems quickly judge the health status of retired batteries, improving the efficiency of cascade utilization. Digital platforms connect battery producers, users, recyclers, and regeneration enterprises, realizing information transparency and efficient resource allocation.
Challenges still exist, including inconsistent battery standards, high recycling costs, and insufficient consumer awareness. However, with the expansion of scale and technological progress, these problems are gradually being solved. The scale effect will further reduce recycling costs and improve economic viability.
In summary, 2026 marks the take-off year of the lithium battery recycling and second-life economy in the forklift industry. It is not only an environmental protection requirement but also a new economic growth point and an important part of industrial competitiveness. Enterprises participating in the recycling layout will lead the sustainable development of the industry.
