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

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.