TheInterim Measures for the Recycling and Comprehensive Utilization of Waste Power Batteries of New Energy Vehicles, jointly issued by six government ministries and commissions, shall come into force on April 1, 2026. Its core revisions are as follows:

　　Unified definition:The term “echelon utilization” is phased out and replaced by the unified expression “comprehensive utilization”. 

　　Whole‑process traceability:A “digital ID card” will be created for each battery to realize closed‑loop supervision covering the full lifecycle from production to material regeneration. 

　　Clear institutional arrangements:Implement the “vehicle‑battery integrated scrappage” mechanism, enforce extended producer responsibility and producers’ end‑of‑life collection obligations. 

　　Strengthened safety governance:Waste batteries are prohibited from flowing into high‑risk sectors such as electric bicycles. Market‑access thresholds for comprehensive‑utilization enterprises have been significantly raised.

Production Side: Coexisting Responsibilities and Opportunities

　　Vehicle and battery manufacturers shall build supporting recycling outlets in their sales territories. Products shall be designed for easy disassembly with unified coding. Full‑lifecycle battery data shall be submitted to the national traceability platform to fulfill statutory take‑back responsibilities.

　　Commercial‑vehicle manufacturers are under substantial pressure. Given their large‑capacity battery packs and concentrated retirement cycles, enterprises must incorporate retired‑battery management into after‑sales and operational systems, and enhance outlet construction, inventory management and testing capabilities. Compliance costs will rise in the short term, yet the policy will drive product designs to prioritize disassembly and recyclability.

　　For leading battery manufacturers including CATL and FinDreams, the new rules bring both obligations and opportunities. With existing strengths in recycling technologies, coding‑traceability systems and outlet deployment, these enterprises can channel retired batteries into their in‑house recycling systems. Higher entry barriers will also help top players further expand their market shares.

Recycling Side: Industry Consolidation and Supply‑Chain Governance

　　Enterprises conducting battery comprehensive‑utilization businesses must hold complete qualifications including project filing, environmental‑impact assessment and pollutant‑discharge permits. Waste batteries may only be sourced from formal channels, with a maximum fine of 30 000 yuan for violations. Raised thresholds will accelerate industrial consolidation. Qualified enterprises such as GEM, Huayou Cobalt and Brunp Recycling will gain more stable raw‑material supplies and stronger bargaining power, while unregulated small‑scale workshops will be forced out of the market.

　　The new regulations also affect mid‑stream links of the industrial chain. After removing batteries, power‑swap operators, maintenance service providers and vehicle‑dismantling enterprises must hand over waste batteries to qualified entities or designated collection points and report material‑flow information. Except for power‑swap scenarios, vehicle‑scrappage formalities cannot be completed if the battery pack is missing. Therefore, power‑swap operators and fleet‑management companies shall improve battery ledgers, connect to the national platform, and integrate battery‑health management into daily operations and maintenance.

Upstream Sector: Long‑Term Cost Advantages

　　A standardized recycling system will benefit material supply chains. The market entry of compliant recycled materials will mitigate price volatility of cobalt, nickel, lithium and other resources, delivering long‑term cost advantages for enterprises with recycling capacities.

　　Overall, the new rules strengthen supervision while unlocking commercial opportunities, pushing the industry to transform from fragmentation toward large‑scale standardized development. Forecasts show China’s annual volume of retired power batteries will exceed one million tons by 2030. The implementation of these Measures marks that the exploitation of this “urban mine” has entered a legal and standardized phase.