China has unveiled stringent new measures to enhance the recycling and utilization of retired power batteries from new energy vehicles (NEVs), marking a critical step in addressing the environmental challenges posed by its rapidly expanding electric vehicle sector. The Ministry of Industry and Information Technology (MIIT), alongside five other government departments, announced the regulations on Friday, January 16, 2026, with implementation set for April 1, 2026.
Under the policy, every NEV power battery will receive a unique digital identity to enable traceability throughout its lifecycle. This system aims to streamline recycling processes and curb illegal disposal practices. The move responds to projections that retired battery volumes will surpass 1 million tonnes annually by 2030, driven by the retirement of first-generation NEV batteries installed in the mid-2020s.
China's NEV industry reached a milestone in 2025, with annual production and sales exceeding 16 million units—a figure that now represents over 50% of domestic new vehicle sales. The MIIT emphasized that the regulations establish a "full-channel, full-chain, and full-lifecycle" management framework, including a national battery traceability platform to monitor recycling efficiency and environmental compliance.
The measures build on a three-year campaign launched in June 2025 to combat improper disposal of industrial waste, including retired NEV components. Industry analysts describe the timing as crucial, with China currently entering a phase of exponential growth in battery retirement rates.
