On July 30, China's Ministry of Industry and Information Technology (MIIT) published a directive to abolish and amend policies related to the "cascade use" of retired new energy vehicle (NEV) power batteries, effectively banning the practice for applications like electric bicycles.

The MIIT removed the "cascade use" clauses from the 2024 edition of the "Standard Conditions for Comprehensive Utilization of Retired NEV Power Batteries," halting the management and announcement of "cascade use" enterprises. Companies previously listed as compliant with these conditions have been removed, though a separate list for recycling firms remains valid.

The directive also mandates that any battery products derived from retired power batteries must meet the quality standards of their intended application areas. It explicitly prohibits any individual or organization from using retired power batteries—whether whole, or after splitting, reassembling, or packaging into battery packs, modules, or cells—for electric bicycles or other uses forbidden by laws, regulations, or mandatory standards.

What is "cascade use"? It refers to processing retired power batteries through inspection, sorting, splitting, and reassembly to create battery products for applications like backup power in communication base stations. However, the MIIT noted that retired batteries often suffer from inconsistent performance and varying residual energy levels. Simple disassembly and reassembly without rigorous quality control can lead to thermal runaway, triggered by overcharging, short circuits, or compression, posing significant safety risks.

In practice, some companies have exploited the "cascade use" label to produce substandard batteries, confusing consumers and businesses about product quality, and threatening public safety. To address this, a 2025 joint regulation by the MIIT and other ministries defines "comprehensive utilization" of retired NEV batteries solely as resource recovery through dismantling, crushing, sorting, and smelting, excluding "cascade use." All battery products must meet application-specific quality requirements.

The MIIT stated that despite the 2025 regulation, illegal enterprises in suburban and rural areas continue to secretly conduct "cascade use" activities, selling the resulting batteries into banned sectors like electric bicycles, disrupting market order.