China is currently the world's largest producer and consumer of lithium batteries. Additionally, the installed capacity of power batteries is expected to reach 294.6GWh, which is a 90.7% increase from the previous year. According to GGII, China's new energy vehicle sales volume is expected to reach 6.887 million in 2022, which is a 95.6% increase from the previous year. It is projected that China will produce 769,000 tons of scrapped lithium-ion batteries in 2025 and 4,198,000 tons in 2030 due to the 5-7 year effective lifespan of these batteries. This will result in the first large-scale scrapping of power batteries in 2026 and an increased demand for the lithium recycling industry in China. This paper focuses on optimizing the lithium recycling industry in China. Specifically, it explores ideas for improving the recycling process.