On July 30, 2026, China’s Ministry of Industry and Information Technology (MIIT) issued a policy announcement that fundamentally changes how the country handles retired electric vehicle batteries. The move effectively ends the government’s formal endorsement of “echelon utilization”, namely the practice of repurposing used power batteries for secondary applications, and removes all previously certified echelon-use recyclers from the official compliance list.  

The MIIT’s announcement outlines five specific measures. The first two directly target the core of the issue. It repeals all echelon-use provisions in the Industry Standard Conditions for Comprehensive Utilization of Waste Power Batteries from New Energy Vehicles (2024 Edition), discontinues the related enterprise announcement management system, and removes all previously certified echelon-use companies from the public directory. The existing list of certified regeneration recyclers remains valid. Equally important, it explicitly prohibits any organization or individual from using whole waste batteries, or batteries processed through splitting, reassembly, or mounting, in electric bicycles or in any other field banned by laws or mandatory national standards. At the same time, all battery products made from retired cells must still meet the quality standards of their intended application sectors.

The remaining three measures focus on cleaning up the broader ecosystem. Standardization bodies are ordered to urgently review and either revise or annul existing national and sector standards that still reference echelon utilization. Government departments at all levels must accelerate the revision or repeal of corresponding policies and regulations, while stepping up joint enforcement actions against producers of substandard battery goods. Social organizations, including their affiliated committees, are required to revise their charters, scopes of work, and naming to remove any mention of echelon use, and immediately stop all related promotional events, exhibitions, consulting services, training, and exchange activities. An annex attached to the announcement lists the specific companies removed from the previous public roster.

This move follows growing concerns over battery safety. As China’s new-energy vehicle fleet expands, retired batteries have reached mass scale. In theory, echelon use extends battery life through testing, sorting, and reassembly for less demanding applications. In practice, however, waste batteries often show inconsistent performance, and quality controls are not always strictly enforced, which poses safety risks.

In 2025, the MIIT issued the Interim Administrative Measures for the Recycling and Comprehensive Utilization of Waste Power Batteries from New Energy Vehicles, redefining “comprehensive utilization” as material recovery and excluding echelon use. The regulation also banned repurposed batteries from electric bicycles and other restricted scenarios. Enforcement has revealed continued challenges. Some operators still repurpose used batteries for banned markets, and references to echelon utilization remain in some policies and standards, potentially causing confusion. The July 30 announcement seeks to address these issues and align regulatory frameworks.

China is applying stricter standards and enforcement to bring used battery products under the same safety framework as new batteries. Foreign companies with relevant operations may need to monitor changes in supply chain compliance requirements. A more regulated recycling system could contribute to long-term industry stability, while near-term compliance costs are worth noting.