AI-driven recycling at scale: How ATRenew advances the circular economy

ATRenew is a tech platform designed to give a second life to electronic devices through large-scale recycling and refurbishment. Established in 2011, the company has over 2,000 offline stores in 291 cities across China, offering data-driven systems for smartphones and other electronic devices. 

Rethinking refurbishment processes

The foundation of ATRenew’s operations is its C2B2C (“consumer-to-business-to-consumer”) model, which manages the full cycle from recycling and privacy clearance to resale. Each device is inspected, graded, and reintroduced to the market through standardized, automated processes.

The driving force behind this vertical integration is the company’s automation centre in Dongguan, which relies heavily on the use of artificial intelligence and robotics. Traditionally, the refurbishment of electronic devices required manual disassembly, analysis, and replacement of parts – processes that are not only time-consuming and costly, but also require a high level of expertise and training on the part of the staff.

At ATRenew, an AI-powered, fully automated inspection line handles the majority of quality checks with remarkable precision and consistency, minimizing errors and reducing the need for manual intervention. This proprietary system is capable of processing up to 100,000 devices daily, with more than 150 million devices processed to date.

Specifically, modules like ATRenew’s “007” units use machine vision and acoustic algorithms to quickly test cameras, sensors, Bluetooth, Wi-Fi, and other key features of a device. An advanced X-ray module can even detect hidden repairs or missing parts without the need for disassembly, helping streamline inspection and reduce reliance on manual work.

The power of data

By handling tens of thousands of devices each day, ATRenew builds up the rich data sets its systems need to train its AI inspection algorithms. This is no small feat in a market where every second-hand phone arrives with unique quirks and repair needs. 

Still, AI’s impact goes beyond speed. The company’s Smart Pricing System analyzes millions of bids and real-time market data to deliver fair, sustainable prices for both recyclers and buyers. Its Smart Supply Chain System taps life-cycle data to decide whether a device is worth refurbishing, as well as how best to maximize its value. The result is higher transaction efficiency, lower waste, and a smoother experience for consumers and partners alike. 

Last but not least, before resale, devices undergo a comprehensive digital-cleansing protocol to help ensure that personal information is securely removed. Each refurbished unit receives inspection certification and warranty coverage to reinforce trust in the pre-owned market.

Together, these tools contribute to a more transparent and efficient second-hand electronics sector, addressing long-standing issues around inconsistent quality and consumer confidence.

A growing market

ATRenew has come a long way since its founding in 2011. According to founder Chen Xuefeng, the company’s biggest initial challenge was not refurbishment, but convincing consumers to sell their unused devices. To address this, ATRenew launched awareness initiatives such as the REVIVE campaign, which included a collaboration with L’Oréal to encourage users to recycle cosmetic containers, as well as recycling centres.

Since the early days, China’s second-hand electronics market has expanded significantly, from roughly RMB 79 billion (about US $11 billion) in 2016 to RMB 309.5 billion (about US $44 billion) in 2021, with projections nearing RMB 987 billion (about US $140 billion) by 2026. Despite this growth, recycling penetration still remains comparatively low, leaving considerable potential for systems that combine technology with sustainable practices.

The company has been recognized for its environmentally friendly practices by being nominated as a 2025 finalist for the prestigious Earthshot Prize, established by Prince William and David Attenborough as a global environmental award.

“Being recognised as a Finalist of The Earthshot Prize marks the culmination of 15 years of work to help advance a zero-carbon future and reduce the growing flow of e-waste in modern society,” commented Chen on the nomination.

What the future holds

ATRenew continues to broaden its recycling network across additional cities and has begun testing self-service recycling kiosks in selected international markets such as Japan and Sweden. These pilots explore how AI-based inspection and pricing systems might be adapted for broader global use.

The same AI and data systems that support smartphone recycling could also be applied to laptops, tablets, and smart devices, extending the platform’s reach to other categories of electronic waste. As automation and recycling technology advance, ATRenew aims to make sustainable consumption increasingly accessible and routine for consumers.