China's MIIT released the 2026-2030 industrial green development action plan, setting a 2030 carbon peak target for industry while accelerating the construction of a full-lifecycle management system for power batteries. By 2030, China's annual waste battery output is projected to exceed 1 million metric tons, with digital IDs and vehicle-battery integrated scrappage reshaping industry rules.
Policy Blueprint: A Five-Year Roadmap for Industrial Green Transformation
On July 31, 2026, China's Ministry of Industry and Information Technology (MIIT) officially released the Five-Year Action Plan for Industrial Green and Low-Carbon Development (2026-2030), mapping a clear roadmap for sustainable development in the world's largest NEV market. This policy framework not only sets a hard target of peaking industrial carbon emissions by 2030 but also prioritizes power battery recycling and utilization.
Key objectives for the 2026-2030 period include:
- Reducing energy consumption per unit of industrial value added by over 10%
- Establishing 500 zero-carbon factories
- Formulating or revising more than 500 industrial green and low-carbon standards
- Significantly increasing green energy use in industry
- Building a sound recycling system for retired NEV power batteries
This policy marks the official transition of China's NEV industry from the "production-heavy, recycling-light" first phase to the "full lifecycle management" second phase. For emerging markets like Central Asia and Russia that are accelerating electrification, this institutional design offers important reference value.
Battery Recycling: From "Headache" to "Strategic Resource"
Power battery recycling has been elevated to strategic importance because the "retirement wave" is already arriving. According to Xinhua, China's annual waste power battery output is projected to exceed 1 million metric tons by 2030. Behind this figure lies the narrative of China's NEV fleet leaping from millions to tens of millions of units.
The retirement timeline is approaching:
- 2024: Approximately 600,000 tons of retired power batteries
- 2025: Expected to reach 800,000 tons, with comprehensive reuse exceeding 400,000 tons (+32.9% YoY)
- 2030: Annual output projected to exceed 1 million tons, with some estimates reaching 5 million tons
Used batteries pose both environmental risks and represent valuable "urban mines." A single power battery contains lithium, cobalt, nickel, and manganese — metals with significant recovery value. In 2025, China's comprehensive reuse of retired NEV batteries exceeded 400,000 metric tons, up 32.9% year-over-year, with leading enterprises achieving internationally advanced recovery rates for key metals.
Institutional Innovation: Digital IDs and Vehicle-Battery Integrated Scrappage
To solve the traceability challenge of "where batteries come from and where they go," China launched a series of institutional innovations in early 2026 that serve as global benchmarks for battery governance.
The digital battery ID system is the most eye-catching measure. Each power battery will be assigned a unique "digital identity" bound to its physical code, enabling full-lifecycle traceability from production, installation, use, replacement to scrapping and recycling. Wang Peng, Director of MIIT's Energy Conservation Department, stated at a press conference: "This represents a significant institutional innovation applying digital technology to trace the entire lifecycle of power batteries."
The vehicle-battery integrated scrappage system plugs loopholes at the source. Effective April 1, 2026, new regulations specify:
- Scrapped NEVs must retain their power batteries (except battery-swap models)
- Vehicles lacking batteries will be classified as incomplete and denied scrapping certificates
- Battery manufacturers bear recycling responsibility for batteries they produce or import
- Battery manufacturers are prohibited from refusing waste batteries transferred by leasing, swapping, and repair enterprises
| Institutional Innovation | Core Content | Expected Impact |
|---|---|---|
| Digital Battery ID | Unique code binding, full-lifecycle traceability | Eliminates "black batteries" from gray channels |
| Vehicle-Battery Scrappage | No scrapping without battery, batteries recycled with vehicles | Boosts formal recycling rate above 90% |
| Extended Producer Responsibility | Battery/vehicle makers bear recycling duty | Creates closed-loop industry chain |
| Black Mass Import Liberalization | Qualified recycled black mass not classified as solid waste | Opens international resource circulation |
Additionally, six ministries jointly issued a notice clarifying that "qualified recycled black mass from lithium-ion batteries is not classified as solid waste and can be freely imported," effective August 1, 2026. This opens channels for international resource circulation in the battery recycling industry.
Global Implications: How Chinese Experience Influences Emerging Markets
China's rapidly improving power battery recycling system offers multiple insights for global emerging markets:
- Proactive planning beats reactive remediation: Establishing recycling systems while NEV penetration is still early costs far less than responding passively after the "retirement wave" arrives
- Digitalization is governance infrastructure: Battery ID systems not only solve traceability but also provide data foundations for carbon footprint accounting and ESG ratings
- Industry chain collaboration is key: Recycling is not a single-link problem; it requires coordination among OEMs, battery makers, recyclers, and regulators
- Resource security and environmental protection go hand in hand: Battery recycling is both an environmental issue and a strategic issue for critical mineral resource security
For markets outside China, the current window represents an opportunity to learn from China's experience and pre-position battery recycling systems. Emerging economies like Central Asia and Russia that are formulating EV promotion policies can incorporate battery recycling into their initial policy frameworks, avoiding the "pollute first, clean up later" path.
As the global NEV market continues expanding, the "second life" management of power batteries is becoming a new dimension of industrial chain competition. Follow EX1000.COM for more in-depth analysis of the NEV industry chain and market insights.
