MIIT Abolishes Cascade Utilization Policy for Retired EV Batteries, Removes 100 Companies from List

The Ministry of Industry and Information Technology (MIIT) issued on the evening of July 30, 2026, the "Announcement on Abolishing and Revising Policies and Standards Related to 'Cascade Utilization' of Retired Power Batteries from New Energy Vehicles and Regulating Related Industry Activities", explicitly abolishing and revising relevant policies and standards, and making comprehensive regulations on related industry activities. The announcement aims to eliminate the inertial impact of the "cascade utilization" concept in the market, prevent some enterprises from simply disassembling and repackaging used batteries to pass off inferior or old products as new for profit, and effectively regulate market order and maintain public safety.

The announcement abolishes the relevant clauses on "cascade utilization" in the "Industry Standard Conditions for Comprehensive Utilization of Retired Power Batteries from New Energy Vehicles (2024 Edition)", discontinues the management of company announcements for "cascade utilization", and removes the already announced "cascade utilization" enterprises from the list of companies that meet the industry standard conditions for comprehensive utilization of retired power batteries. The list of already announced recycling enterprises remains valid. A total of 100 companies have been removed, including Shanghai BYD Co. , Ltd. , Tianjin Gree Titanium New Energy Co. , Hefei Guoxuan High-Tech Power Energy Co. , Hunan Brunp Automotive Recycling Co. , Duofuduo New Energy Technology Co. , and others.

The announcement clarifies that battery products produced by enterprises using retired power batteries must meet the quality standards of the application field. No organization or individual shall use retired power batteries, in whole or after disassembly, reassembly, and other processes, in the form of battery packs, modules, or cells, for electric bicycles or other fields prohibited by laws, administrative regulations, and mandatory standards. These fields already include electric bicycles, electric balance scooters, electric skateboards, energy storage systems above 100 kWh, power banks, toys, etc.

Relevant standardization technical organizations should comprehensively review the national standards and industry standards related to "cascade utilization" of retired power batteries under their jurisdiction, and promptly abolish or revise them to meet management requirements. Relevant authorities should accelerate the abolition or revision of policies and standards related to "cascade utilization" of retired power batteries, strengthen supervision and enforcement in coordination with relevant departments, and investigate and punish behaviors such as using retired power batteries to produce substandard battery products in accordance with laws and regulations. Relevant social organizations should comprehensively review the names, business scope, and work content of themselves and their subordinate institutions, promptly modify and adjust any content involving "cascade utilization", and stop all activities such as promotion, exhibitions, consulting, training, and exchanges related to "cascade utilization".

With the rapid development of the new energy vehicle industry, the volume of retired power batteries has been increasing year by year, and has now entered the stage of large-scale retirement. Retired power batteries generally suffer from poor consistency and varying residual energy. If merely disassembled and reassembled without strict quality control processes, the resulting battery products are prone to thermal runaway due to overcharging, short circuits, or extrusion, posing serious safety hazards. On December 31, 2025, the MIIT, together with relevant departments, jointly issued the "Interim Measures for the Management of Recycling and Comprehensive Utilization of Retired Power Batteries from New Energy Vehicles", which clearly defined that comprehensive utilization of retired power batteries refers to activities such as disassembly, crushing, sorting, and smelting for resource utilization, and no longer includes the concept of "cascade utilization". On April 27, 2026, the MIIT and four other departments jointly issued a notice to carry out a special joint enforcement action to regulate the recycling and utilization of retired power batteries, focusing on prominent issues and investigating and punishing a number of illegal acts in accordance with laws and regulations.