China has announced new interim measures to strengthen the recycling and lifecycle management of used power batteries from new energy vehicles (NEVs). The policy, jointly issued by multiple government departments, will take effect on April 1, 2026, reinforcing oversight of battery disposal and resource recovery.
The move comes as China’s NEV market continues to expand rapidly, increasing the volume of batteries reaching end of life and raising the need for structured recycling systems.
Rapid Growth of the NEV Market
China’s new energy vehicle sector has witnessed significant expansion, with annual production and sales reaching record levels in 2025. As a result, a growing number of power batteries are expected to retire in the coming years.
Industry projections indicate that the volume of retired NEV batteries could exceed 1 million tonnes by 2030, highlighting the urgency of building an efficient recycling and resource recovery framework.
Important Features of the New Measures
Digital Identification and Traceability
Each NEV power battery will be assigned a unique digital identity, enabling full lifecycle tracking from production to recycling. This system aims to improve traceability, reduce regulatory gaps, and prevent improper disposal.
Full Lifecycle Management
The measures introduce a comprehensive approach covering battery usage, retirement, cascade utilization, recycling, and final disposal. This ensures greater regulatory supervision across the entire value chain.
National Information Platform
A centralized national traceability platform will support data sharing and oversight, allowing authorities to monitor battery flows and improve enforcement efficiency.
Tackling Illegal Disposal and Environmental Risks
The new recycling framework aligns with China’s broader campaign against illegal dumping and improper solid waste handling. Authorities have launched special initiatives to address the mismanagement of scrapped vehicles, electronic waste, and retired NEV batteries.
Strengthened supervision is expected to reduce environmental risks while promoting standardized recycling practices.
Supporting a Circular Economy
The enhanced measures are designed to:
- Improve recovery of valuable materials such as lithium, cobalt, and nickel
- Reduce environmental pollution risks
- Strengthen resource efficiency
- Support China’s long-term green development strategy
As the NEV industry continues to grow, effective battery recycling management will play a crucial role in ensuring sustainable and responsible electric mobility development.
Source: China NEV Battery Rules 2026
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