[SMM Analysis] China Issues "Interim Measures for Recycling and Comprehensive Utilization of Scrap NEV Batteries" – Impact on Lithium Battery Recycling Enterprises

SMM January 19, 2026 - On January 16, 2026, the Ministry of Industry and Information Technology, together with the National Development and Reform Commission (NDRC), the Ministry of Ecology and Environment, the Ministry of Transport, the Ministry of Commerce, and the State Administration for Market Regulation, jointly issued the "Interim Measures for the Recycling and Comprehensive Utilization of Waste Power Batteries from New Energy Vehicles (NEVs)." This new management measure is a joint departmental regulation with mandatory legal force, fundamentally changing the previous situation where guidance documents lacked sufficient binding power.

The main content of the new management measure includes the following points:

I. Establishment of Production Codes for NEV Power Batteries.

It will establish a "digital ID card" system for NEV power batteries, enabling full life cycle traceability management through unique codes, and achieving full-process monitoring from production to retirement and recycling. Enterprises producing or importing power batteries for NEVs sold and used domestically (hereinafter collectively referred to as power battery enterprises) must code their batteries in accordance with the "Rules for Coding of Automotive Traction Batteries" (GB/T 34014).

II. Determination of the Producer Responsibility System.

The new management measure requires that power battery enterprises assume recycling responsibility for the power batteries they produce or import for domestic sale and use in NEVs (excluding those sold to NEV producers), and fulfill the following recycling obligations: sales regions for batteries must include recycling service outlets matching sales volumes, providing waste power battery recycling services; update recycling outlet addresses and recycling guidance information in prominent locations; and must not refuse to accept waste power batteries that should be recycled by the power battery enterprise, when transferred by battery swapping service enterprises, motor vehicle maintenance enterprises, etc.

Concurrently, power battery enterprises and NEV producers are encouraged to establish recycling service outlets in accordance with the "Management Specification for Recycling of Traction Batteries for Vehicles - Part 2: Recycling Service Outlets" (GB/T 38698.2).

III. Real-time Registration on the Information Platform.

The new management measure requires that end-of-life vehicle recycling and dismantling enterprises report vehicle scrapping information and warehouse withdrawal information of dismantled waste power batteries according to the rules of the "Implementation Rules for the Management of End-of-life Vehicle Recycling." Furthermore, at various stages such as product certification, customs clearance verification, repair, battery swapping, and warehousing, the following information must be reported to the relevant platform.

For example: NEV producers and enterprises importing NEVs for domestic sale must, within six months of obtaining the NEV product access announcement or mandatory product certification for NEVs, report technical information such as the disassembly and necessary dismantling of NEV power batteries.

Additionally, the new management measure also specifies clear requirements for various parties from three aspects:

I. Recycling Enterprises (including upstream grinding enterprises and downstream hydrometallurgical enterprises).

They must possess compliant procedures (environmental impact assessment, pollutant discharge permits, etc.), operate normatively by being included in the "white list," and strictly implement technical standards.

II. Producers (battery cell manufacturers/automakers)

must assume primary responsibility for recycling, establishing their own or entrusting a recycling network, conducting eco-design, and cooperating with full life cycle information traceability.

III. Consumers

are required to fulfill the entire chain of responsibilities from procurement to retirement to supervision: when purchasing, do not buy lithium battery products of unknown origin (especially those for e-bikes); when retiring, deliver the vehicle along with the battery to a legitimate recycling enterprise; when supervising, actively report illegal recycling and dismantling activities.

SMM believes that this policy innovation marks China's entry into a new phase of "strong regulation, full traceability, and strict law enforcement" in the management of power battery recycling. Through legal compulsion, digital technology, and inter-ministerial collaboration, it thoroughly conducts environmental traceability and effective utilization of scrap lithium batteries. As scrap batteries gradually enter an era of large-scale social retirement, this can effectively improve the utilization rate of batteries and reduce potential environmental risks.

SMM New Energy Research Team

Wang Cong 021-51666838

Ma Rui 021-51595780

Feng Disheng 021-51666714

Lv Yanlin 021-20707875