AI-powered recycling on a large scale: The ways in which ATRenew enhances the circular economy.

      ATRenew is a technology platform aimed at giving a second life to electronic devices through extensive recycling and refurbishment. Founded in 2011, the company operates over 2,000 offline stores across 291 cities in China, providing data-driven solutions for smartphones and other electronic devices.

      Rethinking refurbishment processes

      The core of ATRenew’s business is its C2B2C (“consumer-to-business-to-consumer”) model, which oversees the entire process from recycling and privacy protection to resale. Each device undergoes inspection, grading, and is then reintroduced to the market via standardized and automated methods.

      The main driver of this vertical integration is ATRenew’s automation center in Dongguan, which prominently utilizes artificial intelligence and robotics. Historically, refurbishing electronic devices involved manual disassembly, evaluation, and part replacement—procedures that are both time-intensive and costly, requiring significant expertise and training for employees.

      At ATRenew, a fully automated, AI-driven inspection line performs the majority of quality checks with exceptional accuracy and reliability, reducing errors and the necessity for manual involvement. This unique system can handle up to 100,000 devices per day, having processed over 150 million devices so far.

      Specifically, ATRenew’s “007” modules utilize machine vision and acoustic algorithms to promptly test devices' cameras, sensors, Bluetooth, Wi-Fi, and other crucial features. An advanced X-ray module can even identify concealed repairs or absent parts without disassembly, facilitating inspection and decreasing dependence on manual labor.

      The power of data

      By processing tens of thousands of devices daily, ATRenew generates comprehensive data sets necessary for training its AI inspection algorithms. This is particularly challenging in a market where each second-hand phone presents unique characteristics and repair requirements.

      Moreover, the influence of AI extends beyond mere speed. The company's Smart Pricing System evaluates millions of bids and real-time market data to provide fair, sustainable pricing for both recyclers and buyers. Its Smart Supply Chain System leverages lifecycle data to determine whether a device should be refurbished and how to optimize its value. This leads to increased transaction efficiency, reduced waste, and an improved experience for consumers and partners alike.

      Before resale, devices also undergo a thorough digital-cleansing process to ensure personal information is securely eliminated. Each refurbished unit is certified through an inspection process and comes with warranty coverage, enhancing trust in the pre-owned market.

      Collectively, these tools foster a more transparent and efficient second-hand electronics market, addressing long-standing concerns regarding quality inconsistency and consumer confidence.

      A growing market

      Since its establishment in 2011, ATRenew has made significant progress. According to founder Chen Xuefeng, the company’s initial challenge was not the refurbishment process itself, but rather convincing consumers to sell their unused devices. To tackle this, ATRenew initiated awareness campaigns like the REVIVE project, which included a partnership with L’Oréal to promote recycling of cosmetic containers, alongside recycling centers.

      Since those early days, China’s second-hand electronics market has seen remarkable growth, increasing from approximately RMB 79 billion (about USD 11 billion) in 2016 to RMB 309.5 billion (about USD 44 billion) in 2021, and is anticipated to reach around RMB 987 billion (about USD 140 billion) by 2026. Despite this expansion, the rate of recycling remains relatively low, presenting substantial opportunities for systems that integrate technology with sustainable methods.

      The company has garnered recognition for its eco-friendly initiatives, earning a nomination as a 2025 finalist for the prestigious Earthshot Prize, a global environmental award initiated by Prince William and David Attenborough.

      “Being acknowledged as a Finalist of The Earthshot Prize symbolizes the culmination of 15 years of efforts to advance a zero-carbon future and mitigate the increasing e-waste output in society,” stated Chen regarding the nomination.

      What the future holds

      ATRenew is actively expanding its recycling network into more cities and is experimenting with self-service recycling kiosks in select international markets, including Japan and Sweden. These pilot projects investigate how AI-based inspection and pricing systems could potentially be adapted for global application.

      The same AI and data systems that facilitate smartphone recycling could also be utilized for laptops, tablets, and smart devices, broadening the platform's impact on other types of electronic waste. As automation and recycling technologies evolve, ATRenew seeks to make sustainable consumption more accessible and commonplace for consumers.

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