On July 30, 2026, China's MIIT issued Announcement No. 20 of 2026, formally abolishing power battery cascade utilization policies. 100 companies were removed from the compliance list, marking the end of the dual-track recycling model.
Four Major Policy Adjustments
On July 30, 2026, the Ministry of Industry and Information Technology (MIIT) issued the "Announcement on the Abolition and Revision of Power Battery Cascade Utilization Policies" (Announcement No. 20 of 2026). Key adjustments include:
| Adjustment | Details |
|---|---|
| Abolish relevant clauses | Formally abolish all cascade utilization clauses in the 2024 Industry Norms |
| Cancel enterprise registration | Discontinue cascade utilization enterprise registration; remove all 100 companies |
| Restrict product flow | Prohibit used batteries from entering e-bikes and other prohibited areas |
| Maintain recycling list | The existing recycling enterprise list remains valid |
100 Companies Removed: Including Industry Giants
The 100 removed companies include major industry players:
- Shanghai BYD Co., Ltd.
- Huayou Resources Recycling
- Svolt Energy Technology
- Gotion High-Tech
- Hunan Brunp Recycling
- GEM Co., Ltd.
- Duofluoruo New Energy
- REPT BATTERO Energy
MIIT emphasized that removal from the list does not affect legal business operations.
Policy Background: Correcting Market Chaos, Not a Ban
This adjustment addresses long-standing market chaos. Since the white list program launched in 2018, MIIT issued five batches of approvals. However, some enterprises repackaged used batteries and sold them as new, creating serious safety hazards especially in the e-bike sector.
Dual Benefits: Safety and Resale Value
The policy brings two core improvements:
- Vehicle safety: Eliminates substandard reassembled batteries from the market
- Resale value: Consumers no longer worry about illegal cascade utilization, improving NEV residual values
Industry impacts:
- Cascade enterprises must transition to recycling or exit
- Recycling enterprises benefit from concentrated demand
- OEMs must re-evaluate full lifecycle battery management
- Energy storage sector faces supply chain restructuring
Not a Ban on Reuse, But Unified Standard Regulation
The policy does not prohibit secondary battery use. It eliminates the independent regulatory track for cascade utilization. For more NEV policy analysis, visit EX1000.COM.
