As the global energy transition accelerates, the NEV industry is booming at an unprecedented pace. Behind this green transformation, battery recycling—a critical link tied to resource security, environmental protection, and the sustainable development of industry—has quietly emerged as a new industry worth hundreds of billions. From an “environmental burden” to an “urban mine,” the battery recycling industry is demonstrating unprecedentedly broad prospects.
Strong policy support has laid a solid foundation for the development of the battery recycling industry. In February 2025, the Executive Meeting of the State Council reviewed and approved the Action Plan for Improving the Recycling System for NEV Power Batteries, explicitly proposing the improvement of the standards system to achieve standardized, safe, and efficient recycling and utilization of power batteries.
More importantly, the Interim Measures for the Administration of the Recycling and Comprehensive Utilization of Retired NEV Power Batteries, which will officially take effect on April 1, 2026, marks a new stage in the law-based and standardized management of power battery recycling and utilization in China. The core provisions of this new regulation, jointly issued by six departments including the MIIT, the National Development and Reform Commission, and the Ministry of Ecology and Environment, include:
Establishing a digital ID system: generating a unique and dynamic digital ID for each power battery pack to enable full life cycle flow monitoring and information-based traceability
Implementing the “vehicle-battery integrated retirement” system: retired NEVs must include their power batteries to prevent battery loss
Clarifying the responsibilities of all parties: power battery enterprises and NEV producers must establish recycling service outlets and assume fallback responsibility for collection
Defining red lines for comprehensive utilization: enterprises engaged in the comprehensive utilization of retired power batteries must complete the relevant procedures in accordance with the law, and such batteries are prohibited from being used in restricted fields such as e-bikes
Battery recycling is not only an industry, but also a green revolution concerning the sustainable development of humanity. From policy support to technological innovation, and from resource security to industrial upgrading, China’s battery recycling industry is advancing at an unprecedented speed and with unprecedented intensity. As the 14th Five-Year Plan is implemented in greater depth and the “dual carbon” goals continue to advance, this “urban mine” of battery recycling will release enormous economic, environmental, and social value, contributing China’s wisdom and solutions to the global energy transition and the development of the circular economy.
