At the 2026 World Power Battery Conference held in Yibin, Sichuan, on September 4, an official from China’s Ministry of Industry and Information Technology said that during the 15th Five-Year Plan period, the country’s electric vehicle batteries will enter a phase of large-scale retirement, making it especially important to comprehensively improve the level of recycling and utilization. The ministry had earlier issued an announcement on abolishing and revising policies and standards related to the “echelon utilization” of retired electric vehicle batteries. Data show that China’s comprehensive utilization of retired power batteries exceeded 400,000 tonnes in 2025, and the volume of retired power batteries is expected to exceed 1 million tonnes by 2030. As the electric vehicle industry continues its explosive growth, China’s electric vehicle battery recycling policies are drawing widespread attention.
1. Policy Adjustment Raises Requirements Across the Electric Vehicle Battery Recycling Chain
At the 2026 World Power Battery Conference, Wan Gang, honorary president of the China Association for Science and Technology and a former vice chairman of the 13th National Committee of the Chinese People’s Political Consultative Conference, said that after nearly 30 years of effort, China has built the world’s largest and most complete power battery industrial system, creating a favorable situation in which power batteries lead and support the integrated development of emerging industries such as new energy and new materials. At the same time, he noted that the power battery industry still faces contradictions and problems that must be addressed in future development.
A circular economy industry report recently released on the World Economic Forum website stated that deep recycling and utilization of global electric vehicle power batteries is an industrial opportunity rather than a “waste management challenge.” According to the report, China currently has the world’s largest battery recycling infrastructure. Data from the World Resources Institute show that by 2040, retired electric vehicle batteries worldwide could reach 20.5 million tonnes. The report argues that as the global clean transportation transition accelerates, systems supporting the circular economy are rapidly evolving to match the scale of the transformation. As a result, electric vehicle battery recycling is increasingly being viewed as a strategic industrial activity.
Mo Ke, chief researcher at the True Lithium Research Institute, a Chinese new energy industry research body, said in an interview that as domestic electric vehicle ownership rises rapidly, a large number of power batteries are entering the retirement cycle, and the electric vehicle battery recycling industry is undergoing profound transformation. The original industrial chain, which relied on “echelon utilization” as a core profit point, is being restructured amid policy adjustments. Previously, China’s electric vehicle battery recycling sector mainly formed two core pathways. The first was the “echelon utilization” of retired electric vehicle batteries, which was an important direction for the recycling industry over the past several years. The second pathway applied to batteries unsuitable for “echelon utilization”: crushing and processing them through special technologies to restore them to battery raw materials. Companies with stronger technical capabilities can produce cathode materials in this process. With the policy adjustment, the industry is actively optimizing its industrial chain layout and continuously improving overall operational efficiency.
Mo Ke analyzed that the policy adjustment is not a “one-size-fits-all” ban on the “echelon utilization” of retired electric vehicle batteries. In the early period, domestic policies encouraged the “echelon utilization” of retired electric vehicle batteries because such batteries often retained a certain amount of capacity and had reuse potential. As the industry developed, in order to further strengthen safety responsibilities and standardize market rules, policies have provided forward-looking guidance and adjustments for related business activities. The new rules will promote the recycling of entire vehicles together with their batteries. The core purpose is to smooth battery circulation channels and push retired batteries to flow back to original automakers and major battery manufacturers. Leading battery companies have a deeper understanding of their own products and more standardized production and disposal processes. After an electric vehicle reaches the end of its service life, its battery often still has certain application value. The regulatory approach is therefore more about high-standard regulation at the channel and technology levels, balancing commercial economy with safety and compliance requirements.
Yu Haijun, director of the National and Local Joint Engineering Research Center for the Circular Utilization of New Energy Vehicle Power Batteries and vice president of Guangdong Brunp Recycling Technology Co., Ltd., said in an interview that the new battery recycling policy, combined with the intensive retirement period for electric vehicle batteries, has raised new requirements for companies across the recycling chain. The first requirement concerns how to manage the final flow channels of products. The core lies in the layout of a full-scenario recycling network system that penetrates the end-of-life terminal of power batteries. This recycling network system needs to be built at multiple levels, and this is also the core of commercial layout. The second requirement concerns how to adjust original recycling technology routes. This needs to be carried out around the design of full-lifecycle product positioning. According to the iterative upgrading of new product technology routes, recycling technology route plans should be adjusted in sync, ensuring that whenever a new product is introduced to the market, a corresponding recycling technology solution is also introduced to the market.
2. Producer Responsibility and Design for Recycling Become Central to Electric Vehicle Battery Management
Discussing the impact of the policy adjustment on the entire electric vehicle battery product chain, Yu Haijun said that one of the key points of the adjustment is to strengthen producer responsibility. This requires battery products to consider the matching of recycling technologies at the front-end design stage, especially the preparation of green and low-carbon recycling technologies. At present, the core principle of an industrial method developed by Brunp Recycling has been practiced by companies such as CATL, successfully building a technology system and business model closed loop in which “front-end design” and “back-end recycling” are upgraded in sync.
The policy signal is clear: electric vehicle battery recycling is no longer treated as a purely end-of-pipe activity. It is increasingly being integrated into product design, manufacturing, sales, use, after-sales service, scrapping and material recovery. For electric vehicle manufacturers, this means that battery packs must be easier to dismantle, identify and evaluate. For battery producers, it means that material selection, cell structure, pack design and data records must support later recycling. For recycling enterprises, it means that they must be able to handle new battery chemistries and new pack designs while meeting higher safety and environmental standards. The entire electric vehicle battery value chain is being asked to think in terms of full lifecycle management rather than short-term disposal.
This shift also raises the bar for the electric vehicle battery recycling chain in practical terms. Collection networks must reach the places where electric vehicles actually reach the end of their lives. Reverse logistics must be able to move retired batteries safely and efficiently. Dismantling and testing must be standardized. Data must be traceable. Recyclers must be able to assess the condition of electric vehicle batteries and decide whether they should be dismantled for materials, repaired, or used in other applications under strict safety conditions. The policy adjustment therefore does not simply change one business model; it encourages the electric vehicle battery recycling industry to upgrade its overall capabilities.
For leading electric vehicle and battery companies, the new rules may strengthen their advantages because they have more complete product knowledge, more standardized management systems and greater capacity to invest in recycling technology. For smaller players, the pressure to comply with safety, environmental and technical standards is likely to increase. The direction is consistent: electric vehicle battery recycling should become more formal, more traceable and more closely connected to the original manufacturing system.
3. Digital Identity and Full-Lifecycle Oversight Support Formal Electric Vehicle Battery Recycling
As China’s electric vehicle fleet enters a large-scale scrapping cycle, the implementation of hard rules requiring electric vehicles to be scrapped together with their batteries, together with full-lifecycle management policies, is showing far-reaching governance effects. A recent report by the German electric vehicle news website said that China has begun implementing mandatory full-lifecycle management regulations for power batteries, establishing a “digital identity” for each battery and tracking its entire process from production and use to scrapping and recycling through a national platform. Automakers must establish recycling service networks, provide technical information such as battery dismantling guidance, and ensure that retired batteries enter compliant channels. In principle, vehicles and power batteries should be scrapped together, effectively guaranteeing standardized management of batteries throughout their entire lifecycle. At the same time, recycling companies face high standards in areas such as licenses, environmental impact assessments and pollutant emissions, and nearly 30 national standards further unify industry processes.
This digital identity system is important for electric vehicle battery recycling because it helps answer several key questions. Where was the battery produced? Which electric vehicle was it installed in? How was it used? When did it enter the end-of-life stage? Where did it go for recycling? By connecting these pieces of information, regulators can better prevent retired electric vehicle batteries from flowing into informal channels. Automakers and battery makers can also use lifecycle data to improve product design and recycling planning. Recycling companies can receive more accurate information about battery chemistry, structure and condition, which supports safer and more efficient processing.
The requirement that electric vehicles and power batteries generally be scrapped together is also significant. In the past, some retired electric vehicle batteries could be removed and traded through less formal channels. That could make it harder to track the final destination of the battery and could create safety and environmental risks. By promoting vehicle-with-battery recycling, the policy aims to keep retired electric vehicle batteries within a more manageable system. Original automakers and major battery manufacturers are expected to play a stronger role in collecting and channeling retired batteries back into compliant recycling. This does not mean that every battery must follow the same path, but it does mean that the overall flow should be more transparent and more closely supervised.
For consumers, the digital identity system and standardized recycling channels can provide greater confidence that their electric vehicles are being handled responsibly at the end of life. For companies, compliance becomes a competitive factor. Electric vehicle brands that can demonstrate strong battery traceability and recycling performance may find it easier to meet customer expectations and regulatory requirements in both domestic and international markets. The electric vehicle battery recycling system is thus becoming part of the broader quality infrastructure of the electric vehicle industry.
4. Resource Security, Industrial Competitiveness and Long-Term Supply-Chain Resilience
The World Economic Forum report shows that when the charge and discharge capacity of electric vehicle power batteries falls to a certain range below original performance, they may no longer be suitable for use in electric vehicles, but they can still be scientifically applied in low-intensity scenarios such as building support systems or renewable energy storage. However, as related testing and certification costs continue to adjust, the large-scale construction of recycling infrastructure remains the core of achieving a resource closed loop for power batteries. The International Energy Agency believes that by 2050, power battery recycling can significantly reduce global demand for newly mined lithium and nickel and greatly reduce demand for cobalt. The market value of recycled energy-transition minerals could reach USD 200 billion by that year.
In addition, a World Economic Forum white paper titled “The Art of Scaling Circular Supply Chains” notes that reverse logistics networks, recycling systems, material traceability and recycling infrastructure integrated at the early stages of planning, manufacturing and supply-chain design have been highly recognized by the industry for their operational efficiency. Formal facilities can achieve recovery rates of up to 99.6% for nickel, cobalt and manganese, and up to 96.5% for lithium. This system not only effectively improves the recovery rates of key raw materials such as lithium, nickel, cobalt and manganese, but also reduces dependence on external resources. Therefore, forming a closed loop for retired power batteries is not only an environmental issue; it also concerns resource security, industrial competitiveness and long-term supply-chain resilience.
For the electric vehicle industry, these considerations are closely connected. Electric vehicle batteries require substantial quantities of critical minerals. As electric vehicle penetration rises, the demand for these materials grows. Recycling retired electric vehicle batteries can help recover valuable materials and reduce the pressure to rely solely on newly mined resources. It can also reduce the environmental footprint associated with mining and processing. At the same time, a robust electric vehicle battery recycling system can make the electric vehicle supply chain more resilient to market fluctuations and geopolitical risks. It can turn retired batteries from a burden into a strategic resource.
The policy adjustment should therefore be understood in the broader context of China’s electric vehicle industry moving toward high-quality development. The goal is not simply to collect more retired batteries, but to build an efficient, safe, traceable and commercially sustainable electric vehicle battery recycling system. This system must be able to handle the coming wave of retired electric vehicle batteries, recover critical materials at high rates, and support the continued growth of the electric vehicle market.
| Indicator | Reported Figure | Context |
|---|---|---|
| China’s comprehensive utilization of retired power batteries in 2025 | More than 400,000 tonnes | Shows the existing scale of electric vehicle battery recycling and utilization |
| Projected retired power battery volume in China by 2030 | More than 1 million tonnes | Reflects the coming large-scale retirement of electric vehicle batteries |
| Projected global retired electric vehicle batteries by 2040 | 20.5 million tonnes | Highlights the global scale of the electric vehicle battery retirement challenge |
| Projected global electric vehicle battery recycling market by 2034 | Nearly USD 100 billion | Indicates the strategic commercial value of electric vehicle battery recycling |
| Projected market value of recycled energy-transition minerals by 2050 | USD 200 billion | Shows the long-term resource value of battery recycling |
| EU Battery Booster support plan launched in June | EUR 1.5 billion | Illustrates international policy support for circular battery value chains |
| Recovery rate for nickel, cobalt and manganese at formal facilities | Up to 99.6% | Demonstrates the technical potential of advanced electric vehicle battery recycling |
| Recovery rate for lithium at formal facilities | Up to 96.5% | Shows progress in recovering key materials from retired electric vehicle batteries |
| National standards for the sector | Nearly 30 | Supports unified processes and higher compliance requirements |
5. Global Market Interest in Electric Vehicle Battery Recycling Continues to Rise
Against the backdrop of widespread international attention, China’s strict electric vehicle battery recycling management policies are seen as a signal to the world that China’s new energy industry is firmly committed to high-quality development. The World Economic Forum report shows that the global electric vehicle battery recycling market is expected to reach nearly USD 100 billion by 2034. As the supply system for critical minerals is optimized and regulatory requirements expand, end-of-life battery management is accelerating into a strategic industrial core capability. In June, the European Union launched a EUR 1.5 billion “EU Battery Booster” support plan, identifying circularity, material recovery and reuse as key elements for building a competitive and resilient battery industry. Chinese electric vehicle and battery companies such as BYD and CATL have already integrated recycling deeply into their global operations.
Germany’s Focus weekly reported that China’s electric vehicle industry is steadily entering a new stage of high-quality development, and the standardized treatment of millions of retired batteries is becoming a model for the global green transition. Digital labels effectively track the full lifecycle of batteries and ensure that they enter formal recycling channels efficiently. China’s establishment of an advanced digital supervision system not only strongly promotes its own industrial upgrading but also provides a highly valuable Chinese example for global battery circular utilization.
The German electric vehicle news website reported that the development of China’s retired power battery industry is both an active environmental exploration and an important opportunity for developing a circular economy. China has a solid foundation in recycling technology and processing capacity. Since 2018, it has continued to improve its standardized recycling system, and hundreds of approved enterprises are continuously releasing green production capacity and increasing the processing share of formal facilities. This matters for the electric vehicle sector because the credibility of electric vehicle growth increasingly depends on how batteries are handled after retirement. A strong electric vehicle battery recycling system can support the environmental case for electric vehicles and strengthen public confidence in the industry.
Mo Ke analyzed that Chinese companies are actively benchmarking against international high standards. Battery products exported overseas strictly comply with local regulations and fully implement battery full-lifecycle responsibilities. China’s domestic recycling industry has made significant progress overall. Major formal plants continue to achieve technological breakthroughs, and the full-chain closed-loop recycling system is becoming increasingly complete. With the continuous deepening of the regulatory system and the ongoing improvement of compliance levels, China’s power battery industry is demonstrating the strong vitality of the China approach through solid practice and a complete ecosystem, truly realizing a green and sustainable future for the electric vehicle battery industry.
6. Operational Implications for Electric Vehicle Manufacturers, Battery Makers and Recyclers
The new policy environment has several practical implications for companies in the electric vehicle battery value chain. For electric vehicle manufacturers, the battery is no longer only a performance component during the vehicle’s useful life; it is also a post-use asset that must be managed through a regulated channel. Automakers need to establish or participate in recycling service networks, provide dismantling and technical information, and ensure that retired electric vehicle batteries are transferred to compliant recyclers. They also need to consider how battery design affects dismantling, testing and material recovery. A battery pack that is difficult to disassemble or lacks clear chemical information may become more costly to recycle, which can affect the overall lifecycle value of the electric vehicle.
For battery manufacturers, producer responsibility means that front-end design and back-end recycling must be connected. The choice of materials, the structure of cells and modules, the use of adhesives and fasteners, and the availability of data all influence recycling outcomes. Leading companies are already exploring closed-loop models in which retired electric vehicle batteries are recovered, dismantled and processed into materials that can be used again in battery production. Such models can reduce reliance on virgin materials and improve supply-chain resilience. They can also provide valuable data for the design of next-generation electric vehicle batteries.
For recycling companies, the policy adjustment creates both opportunities and challenges. The volume of retired electric vehicle batteries is growing, which creates a larger market. At the same time, standards are rising. Recycling companies need to invest in safe collection, transportation, storage and dismantling. They need to meet environmental and pollutant emission requirements. They need to be able to handle different battery chemistries and pack designs. They also need to build trust with automakers, battery makers and consumers. The companies that can combine technical capability, compliance and network coverage are likely to be better positioned in the emerging electric vehicle battery recycling market.
For local governments and industrial parks, the development of electric vehicle battery recycling clusters can bring economic and environmental benefits. Recycling facilities can create jobs, support local electric vehicle supply chains, and reduce the environmental risks associated with improper battery disposal. However, local authorities also need to ensure that recycling operations meet strict environmental and safety standards. The goal should be to build a recycling system that is not only large in scale but also high in quality and credibility.
7. Safety, Standards and Public Confidence in Electric Vehicle Battery Recycling
Safety is a central concern in electric vehicle battery recycling. Retired electric vehicle batteries may still contain significant energy, and they can pose fire and chemical risks if mishandled. The policy emphasis on formal channels, qualified recycling enterprises and full-lifecycle tracking is therefore closely related to safety. When retired electric vehicle batteries enter informal workshops, there may be insufficient protection for workers, communities and the environment. By contrast, formal recycling facilities can apply proper discharge, dismantling, storage and material recovery procedures. They can also monitor environmental emissions and manage hazardous substances in a controlled manner.
Standards play an important role in building public confidence. Nearly 30 national standards cover various aspects of the electric vehicle battery recycling process, helping to unify industry practices. These standards can address battery identification, dismantling requirements, safety protocols, environmental protection and material recovery. For electric vehicle owners, the existence of a regulated recycling system provides assurance that their vehicles and batteries will not become environmental liabilities. For insurers, fleet operators and second-hand electric vehicle buyers, better battery lifecycle data can also support more accurate risk assessment and value evaluation.
Public confidence is especially important as electric vehicles become more common. If consumers worry that electric vehicle batteries will be dumped or handled improperly at the end of life, that concern can affect the reputation of the entire electric vehicle industry. A transparent and well-regulated electric vehicle battery recycling system can help address such concerns. It can demonstrate that electric vehicles are part of a circular economy in which valuable materials are recovered and environmental impacts are managed. This, in turn, supports the long-term growth of the electric vehicle market.
8. A Strategic Opportunity for the Global Electric Vehicle Transition
The coming wave of retired electric vehicle batteries is often described as a challenge, but it is also a strategic opportunity. The World Economic Forum report’s conclusion that deep recycling of global electric vehicle power batteries is an industrial opportunity rather than a waste management challenge captures this shift in perspective. Retired electric vehicle batteries contain valuable materials. They can be used in appropriate second-life applications under strict safety and performance conditions. At the end of their useful life, they can be dismantled and processed to recover critical minerals. Each of these steps can create economic value while reducing environmental pressure.
China’s policy adjustment reflects a broader understanding that electric vehicle battery recycling must be integrated into the entire electric vehicle lifecycle. The emphasis on producer responsibility, vehicle-with-battery recycling, digital identity, formal channels and high standards is intended to build a more robust system. The goal is not to discourage legitimate recycling businesses but to raise the overall quality and safety of the industry. By encouraging retired electric vehicle batteries to flow back to original automakers and major battery manufacturers, the policy aims to combine product knowledge with recycling capability. By requiring digital tracking and full-lifecycle management, it aims to make the flow of batteries more transparent. By setting environmental and technical standards, it aims to protect workers, communities and the environment.
International interest in China’s approach is growing because the global electric vehicle transition faces similar challenges. The European Union’s Battery Booster plan, the World Economic Forum’s circular economy reports, and the International Energy Agency’s analysis all point in the same direction: electric vehicle battery recycling is becoming a strategic industrial activity. Countries and companies that can build efficient collection networks, advanced recycling technologies, transparent data systems and strong compliance frameworks will be better positioned to capture the value of retired electric vehicle batteries and secure access to critical materials.
Chinese companies are already active in this space. Battery makers and electric vehicle manufacturers are exploring closed-loop recycling. Recycling enterprises are investing in technology and capacity. Regulators are building digital platforms and standards. The scale of China’s electric vehicle market provides a large base of retired batteries, which can support the development of recycling technologies and business models. At the same time, international cooperation and benchmarking will remain important. Electric vehicle battery recycling is a global value chain issue, and no single country can manage it alone.
The transition now underway is therefore more than a policy revision. It is a signal that the electric vehicle industry is entering a new phase in which the end-of-life stage of the battery is treated as part of the product system. For electric vehicle manufacturers, battery suppliers, recyclers and consumers, the message is clear: electric vehicle battery recycling is becoming more formal, more strategic and more closely connected to resource security and industrial competitiveness. The companies and systems that adapt early will be better prepared for the large-scale retirement of electric vehicle batteries. The development of a high-quality electric vehicle battery recycling system will also strengthen the environmental and economic case for electric vehicles, supporting the long-term sustainability of the global electric vehicle transition.
As China’s electric vehicle battery recycling policies continue to evolve, the market will be watching how implementation unfolds. The key questions include how quickly collection networks reach end-of-life electric vehicles, how effectively digital tracking covers batteries across brands and segments, how well recycling technologies keep pace with new battery chemistries, and how the economics of recycling can be balanced with safety and environmental requirements. The answers to these questions will shape the next stage of the electric vehicle battery recycling industry. What is already clear is that electric vehicle battery recycling has moved from the periphery to the center of the electric vehicle industrial agenda. It is now a strategic activity that connects environmental protection, resource security, industrial upgrading and global competitiveness.