The Ministry of Industry and Information Technology (MIIT) recently issued a public notice, abolishing and revising policies related to the cascade utilization of used power batteries, aiming to standardize business activities across the entire industry. As a result, 100 companies that were previously listed have been removed from the industry's standard list.

"The notice is very clear: all batteries must uniformly comply with national mandatory standards, and there is no separate standard for 'cascade utilization,'" said Zhu Aiping, rotating president of the Hunan Battery Industry Association and secretary-general of the Changsha Advanced Battery Materials and Battery Industry Technology Innovation Strategic Alliance, in an interview on August 3. He stated that the core purpose of the notice is to ensure safety, while also promoting double-digit growth in the battery recycling industry over the long term.

Strict Ban on "Simple Refurbishment" of Used Batteries for E-bikes

Previously, some companies disassembled and reassembled used power batteries, redirecting the refurbished products to applications like backup power for communication base stations. These products are commonly referred to as "cascade utilization batteries" in the industry. In 2025, the MIIT and other departments jointly issued the "Interim Measures for the Management of Recycling and Comprehensive Utilization of Used Power Batteries from New Energy Vehicles," clarifying that the comprehensive utilization of used power batteries will no longer include the concept of "cascade utilization." Subsequently, multiple departments released a series of supporting standards, constraining cascade utilization activities from dimensions such as design, testing, and labeling. However, some companies have produced substandard batteries under the guise of "cascade utilization." It is difficult for downstream companies and ordinary consumers to distinguish whether products are compliant. "The true state of used batteries is hard to accurately detect through conventional methods like measuring voltage and current," Zhu Aiping explained. Non-compliant companies, relying solely on voltage and current measurements, cannot detect internal battery degradation. Many refurbished batteries appear intact externally but are actually "faulty batteries," posing risks of fire and explosion. "This is the core reason for the MIIT's policy adjustment, which is to plug safety loopholes at the source." The notice draws a clear red line: no individual or entity may reassemble used batteries in any form for use in e-bikes or other areas explicitly prohibited by laws and regulations. All battery products must fully meet the mandatory quality standards applicable to their specific use scenarios.

Impact on Market Order and Non-Compliant Companies

With the rapid development of China's new energy vehicle industry, the volume of retired power batteries has been rising year after year, and the industry has now officially entered a phase of large-scale retirement. "According to calculations, a large number of retired batteries should have entered formal channels," Zhu Aiping said. However, the actual volume flowing into compliant companies is far below industry expectations. This notice will drive more retired batteries into formal disposal channels, fundamentally breaking the previous distorted market pattern of "bad money driving out good." The notice clarifies that the management of cascade utilization companies will no longer be conducted, and all 100 companies on the previous whitelist have been removed from the standard list. A review by reporters found that nine of these companies are located in Hunan. "This adjustment has a significant impact on the original whitelisted companies," Zhu Aiping pointed out. Some companies that reduced costs through non-compliant means are likely to be eliminated from the market. "In the early days, the lithium battery industry chain lacked raw materials, and cascade utilization helped fill the gap," Zhu Aiping told reporters. Now that the entire chain is mature, and raw material costs have dropped significantly, the time for comprehensive regulation has arrived. "This policy adjustment is definitely a positive for the industry," said Xiong Wei, general manager of Hunan Yunzhu Siweipu New Energy Technology Co., Ltd. Previously, numerous unlicensed small workshops privately disassembled and installed used batteries, posing safety hazards for consumers and causing serious environmental pollution. "However, the policy should not be a simple one-size-fits-all approach," Xiong Wei cautioned. He suggested that some retired batteries in good condition could be reused in non-contact scenarios, such as unattended operations. He called for the industry to introduce detailed, specialized standards clarifying entry thresholds, application scenarios, and processes. "This would avoid breaking down and smelting still-usable retired batteries, preventing unnecessary waste of resources." It is understood that Hunan Yunzhu Siweipu New Energy Technology Co., Ltd. is a venture established with a 100 million yuan investment from a China Minmetals subsidiary and Toyota, covering areas such as used power battery recycling and energy storage technology services.

Hunan Implements Strict Oversight of Used Power Battery Recycling

On July 31, the Hunan Provincial Department of Industry and Information Technology issued a notice titled "On the Work of Normalized Supervision of Recycling and Comprehensive Utilization of Used Power Batteries from New Energy Vehicles." This establishes a dynamic, documented supervision ledger for all relevant entities across the entire chain, including battery production, vehicle manufacturing, and comprehensive utilization in the province, and follows up on rectifying existing issues. The notice requires companies to ensure full traceability of the battery lifecycle, and those that refuse to comply will be dealt with according to the law. Hunan will build a long-term regulatory system for the recycling and utilization of used power batteries, involving multiple stakeholders, through public reporting channels, regular local inspections, and municipal-level special spot checks.