【SMM Analysis】What benefits does the release of China's new recycling policy bring to lithium battery recycling enterprises?

Published: Jan 30, 2026 18:49
Source: SMM
SMM January 19 News: 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 of New Energy Vehicles (NEVs)." This new management measure is a joint departmental regulation with mandatory legal binding force, fundamentally changing the previous situation where guidance documents lacked sufficient enforceability.

SMM January 19 News: 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 of New Energy Vehicles (NEVs)." This new management measure is a joint departmental regulation with mandatory legal binding force, fundamentally changing the previous situation where guidance documents lacked sufficient enforceability.

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

I. Establishment of Production Coding 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 ensuring 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 sales and use, and fulfill the following recycling obligations (excluding power batteries sold to NEV producers): sales regions for batteries must include recycling service outlets matching sales volumes to provide waste power battery recycling services; prominently update addresses of recycling service outlets and recycling reminder information; and they must not refuse to accept waste power batteries that should be recycled by the power battery enterprises, when transferred by battery swapping service enterprises or motor vehicle maintenance enterprises, etc.

Meanwhile, 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 retirement information and information on the warehouse withdrawals of dismantled waste power batteries according to the relevant provisions of the "Detailed Rules for the Implementation of the Regulations on the Recycling of End-of-Life Motor Vehicles." Furthermore, at various stages such as product certification, customs clearance verification, repair, battery swapping, and warehousing, the following information should be reported to the relevant platform. For example, NEV producers and enterprises importing NEVs for domestic sales should, within 6 months after obtaining the NEV product access announcement or mandatory NEV product certification, submit technical information on the disassembly and necessary dismantling of NEV power batteries.

III. Real-time Registration on the Information Platform.
The new management measure requires that end-of-life vehicle recycling and dismantling enterprises report vehicle retirement information and information on the warehouse withdrawals of dismantled waste power batteries according to the relevant provisions of the "Detailed Rules for the Implementation of the Regulations on the Recycling of End-of-Life Motor Vehicles." Furthermore, at various stages such as product certification, customs clearance verification, repair, battery swapping, and warehousing, the following information should be reported to the relevant platform. For example, NEV producers and enterprises importing NEVs for domestic sales should, within 6 months after obtaining the NEV product access announcement or mandatory NEV product certification, submit technical information on the disassembly and necessary dismantling of NEV power batteries.

Consumers

Should 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); at the time of retirement, deliver the vehicle along with the battery to a legitimate recycling enterprise; during supervision, 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 ensures 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.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
In January, national passenger car producers' new energy wholesale estimates reached 900,000 units, up 1% YoY.
20 hours ago
In January, national passenger car producers' new energy wholesale estimates reached 900,000 units, up 1% YoY.
Read More
In January, national passenger car producers' new energy wholesale estimates reached 900,000 units, up 1% YoY.
In January, national passenger car producers' new energy wholesale estimates reached 900,000 units, up 1% YoY.
According to the latest data from the Passenger Car Association, in December 2025, producers with new energy wholesale sales exceeding 10,000 units accounted for 93% of the total wholesale sales of passenger NEVs that month. Based on preliminary January data, these producers achieved sales of 830,000 units in January. As most producers have already locked in their major sales figures, by applying the structural proportion from the previous month to the current month's data, the estimated wholesale sales of passenger NEVs nationwide in January were 900,000 units. According to comprehensive preliminary monthly association data: the estimated wholesale sales of NEVs by national passenger car producers in January 2026 were 900,000 units, up 1% YoY.
20 hours ago
CAAM: In 2025, 476,000 complete vehicles were imported, down 32.4% YoY.
20 hours ago
CAAM: In 2025, 476,000 complete vehicles were imported, down 32.4% YoY.
Read More
CAAM: In 2025, 476,000 complete vehicles were imported, down 32.4% YoY.
CAAM: In 2025, 476,000 complete vehicles were imported, down 32.4% YoY.
据中国汽车工业协会整理的海关总署数据显示,2025年12月,汽车整车进口3.0万辆,环比下降30.4%,同比下降56.1%;进口金额14.7亿美元,环比下降23.6%,同比下降52.5%。2025年,汽车整车进口47.6万辆,同比下降32.4%;进口金额236.4亿美元,同比下降39.7%。
20 hours ago
Canada Announces New EV Strategy, to Collaborate with China
20 hours ago
Canada Announces New EV Strategy, to Collaborate with China
Read More
Canada Announces New EV Strategy, to Collaborate with China
Canada Announces New EV Strategy, to Collaborate with China
According to CCTV News, on February 5, Canadian Prime Minister Mark Carney announced a new electric vehicle strategy, including the reinstatement of car purchase subsidies, and stated that Canada will cooperate with China to promote the local production and export of EVs in Canada. According to a statement released by the Prime Minister's Office of Canada, the country will make full use of existing and newly established trade agreements, including a recently reached EV cooperation agreement with China, to facilitate large-scale investment in this sector, diversify Canada’s automotive export markets, and position Canada as one of the global leaders in the electric vehicle industry.
20 hours ago