China will strengthen management on the recycling and comprehensive utilization of used new energy vehicle (NEV) power batteries, according to the interim measures jointly issued by the Ministry of Industry and Information Technology (MIIT) and five other departments on Friday.

Each power battery of NEVs will be assigned a digital identity under the interim measures, which will take effect on April 1, 2026.

The move comes as China's NEV industry has expanded rapidly. In 2025, NEV production and sales both exceeded 16 million units, accounting for over half of domestic new vehicle sales.

With power batteries from earlier NEVs reaching the end of their service life due to capacity degradation, the volume of retired batteries is growing significantly, according to the MIIT.

Industry experts note that the regulation is timely, given that China is entering a phase of large-scale battery retirement, with projected used battery generation exceeding 1 million tonnes by 2030.

Highlighting a "full-channel, full-chain, and full-lifecycle" management framework, the MIIT said that the interim measures include establishing a national NEV power battery traceability information platform and a digital ID management system.

"Specifically, the digital ID utilizes power battery coding as the information carrier, linking data across key stages including production, vehicle installation and sales, battery swapping, maintenance and replacement, vehicle scrapping, battery recycling, and comprehensive utilization. This enables monitoring of the power battery's entire lifecycle flow and facilitates traceability through information systems. It is fair to say that applying digital technology to the full-process traceability management of power batteries represents a significant institutional innovation under the interim measures," said Wang Peng, director of the Energy Conservation and Comprehensive Utilization Department under the MIIT.

Gong Jinfeng, deputy general manager of the China Automotive Technology and Research Center, said the measures will ensure the secure and efficient recycling of used power batteries.

"The interim measures, as China's first departmental regulation governing the recycling and utilization of NEW power batteries, clearly define the primary responsibilities of entities across the industrial chain. They further elevate the level of management, intensify regulatory oversight, and establish clear boundaries for relevant activities. This will effectively standardize the conduct of all participants and focus on building a standardized, safe, and efficient recycling and utilization system," said Gong.

China initiated a three-year special campaign targeting illegal dumping and the disposal of solid waste in June last year, including scrapped motor vehicles, waste electronic products, retired new energy equipment, and used power batteries.