According to a report in China Daily on January 27, 2026
China is set to revolutionize the management of electric vehicle (EV) batteries with the introduction of unique “digital identities” for every new-energy vehicle power battery, a move designed to improve lifecycle tracking, enhance safety, and unlock greater efficiency in the rapidly growing battery recycling sector.
The initiative, announced by the Ministry of Industry and Information Technology (MIIT), comes as the country anticipates an unprecedented wave of battery retirements in the coming decade. According to MIIT estimates, retired EV batteries could surpass 1 million metric tons annually by 2030, creating both environmental risks and opportunities for resource recovery.
Each battery will be assigned a unique digital code, linking production, installation, usage, replacement, vehicle decommissioning, recycling, and eventual reuse. The system, MIIT officials say, represents a first-of-its-kind institutional innovation, combining digital technology with industrial lifecycle management.
“This is a critical step for ensuring environmental safety while enabling the efficient reuse of valuable metals,” said Wang Peng, head of MIIT’s energy conservation and comprehensive utilization department. “It allows regulators and manufacturers to monitor the entire lifecycle of batteries, from assembly to recycling, with unprecedented transparency.”
The regulatory framework, formalized in the Interim Measures for the Recycling and Comprehensive Utilization of Retired NEV Power Batteries, also clarifies the responsibilities of automotive and battery manufacturers, while laying out enforcement mechanisms and penalties for non-compliance.
High Stakes in a Burgeoning Market
EV batteries contain high-value metals such as lithium, cobalt, nickel, and manganese, alongside hazardous substances like fluoride compounds. If not handled correctly, retired batteries pose significant environmental and safety risks, including contamination of soil and water.
China’s NEV market has expanded rapidly over the past decade, and with it, the volume of batteries reaching end-of-life. According to government data, more than 400,000 metric tons of retired batteries were comprehensively reused in 2025, a 33% year-on-year increase, with top-tier recycling firms achieving recovery rates on par with international standards.
Industry observers note that the success of this initiative will hinge on coordination between regulators, manufacturers, and financial institutions, as well as robust data management systems to track and trace battery lifecycles.
Building Standards and International Alignment
The State Administration for Market Regulation (SAMR) has pledged to work closely with MIIT to accelerate the formulation of technical standards and certification systems for battery recycling. Pilot programs on carbon footprint labeling and international cooperation on standard harmonization are also planned, aimed at boosting the low-carbon competitiveness of China’s EV battery products in global markets.
“This initiative positions China as a potential leader in sustainable battery lifecycle management,” said Wen Xuefeng, deputy director of SAMR’s solid waste and chemicals department. “By setting clear rules for traceability and recycling, it not only safeguards public safety but also strengthens resource efficiency and supply chain resilience.”
Consumer Role and Corporate Responsibility
The regulations place shared responsibility on consumers and manufacturers. Owners of EVs are required to follow manufacturer instructions for battery recycling, provide traceability information such as license plate numbers, and deliver end-of-life vehicles and batteries to authorized recyclers. Manufacturers, in turn, must ensure data security and protect consumer privacy.
Violations—including failure to code batteries, improper disposal, or non-reporting—can result in fines or other administrative penalties, reinforcing the government’s commitment to strict enforcement.
Strategic Implications
Experts argue that China’s move to standardize battery lifecycle management is not just environmental but strategically economic. By improving recycling efficiency, reducing reliance on imported battery metals, and fostering a circular economy, the policy strengthens China’s position in the global EV supply chain.
“The introduction of digital IDs represents a major leap in China’s green industrial policy,” said an analyst at a Shanghai-based consultancy. “It aligns with broader ambitions to decarbonize the transport sector, enhance resource security, and create a replicable model for sustainable industrial practices worldwide.”
With the EV market expanding globally, China’s digital ID system for batteries may serve as a benchmark for other countries grappling with the twin challenges of environmental sustainability and industrial efficiency.
If you want, I can also slot this article into your website’s editorial structure with a short summary and metadata so it’s ready to post under China Economy → Structural Transformation with FT/Nikkei-style headings and tags for overseas investors.
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