China Announces Ambitious Plan to Process One Million Tons of EV Batteries by 2030

China is preparing to implement sweeping new administrative regulations for the recycling and utilization of power batteries for new-energy vehicles. The initiative, announced by the Ministry of Industry and Information Technology, is a central component of the country's 15th Five-Year Plan covering the period from 2026 to 2030. Officials aim to process more than one million metric tons of retired power batteries by the end of the decade. Xin Guobin, the vice minister of industry and information technology, stated that the government will launch joint enforcement campaigns across multiple departments to ensure compliance. A primary feature of this strategy is the introduction of a comprehensive digital identification system for all power batteries. This system is designed to make the source of every battery traceable and its final destination trackable throughout its entire lifecycle. This regulatory push comes as the number of new-energy vehicles on Chinese roads continues to climb rapidly. By the end of 2025, there were nearly 44 million such vehicles in operation, representing over 12 percent of the total national fleet. As these vehicles reach the end of their service life, the volume of retired batteries is expected to grow significantly, creating an urgent need for standardized management. In addition to tracking, China has already begun setting new standards for transparency regarding battery health. The national standard GB/T 46991.1-2025, which entered into force in July 2026, defines binding measurement methods for assessing battery aging and residual capacity. This norm aims to reduce the discrepancy between the energy levels displayed to drivers and the actual usable capacity of the battery. These efforts reflect a broader global shift toward a circular economy in the automotive sector. By treating used batteries as a strategic source of raw materials rather than waste, manufacturers hope to secure supply chains for critical minerals. This approach is increasingly viewed as vital for the long-term sustainability of the electric vehicle industry. Other regions are also developing infrastructure to manage the end-of-life phase for electric vehicles. In Canada, a national program funded by 31 vehicle manufacturers provides a harmonized system for the collection and recycling of batteries. This program connects fleet operators and repair shops with qualified service providers to ensure batteries are repurposed or recycled safely. European manufacturers are similarly investing in material recovery technologies to improve sustainability. The BMW Group recently concluded a research project that successfully increased the share of recoverable materials from end-of-life vehicles to 51 percent. These findings are now being used to inform future circular economy strategies and industrial recycling processes. Investment in these circular systems remains a complex challenge for both governments and private companies. Experts note that redesigning products, building treatment capacity, and organizing collection networks require significant coordination. Projects often have different development cycles, meaning that infrastructure and policy must evolve in tandem to be effective. Financial support for these initiatives is also diversifying through various public and private channels. The European Investment Fund, for example, has invested in platforms designed to empower circular economy projects across Greece and other regions. Such funding models aim to bridge the gap between initial research and large-scale industrial application. As these policies mature, the automotive industry is expected to see a more standardized approach to battery management. The focus on traceability and standardized health metrics is likely to increase consumer confidence in the longevity of electric vehicles. These developments mark a significant step toward integrating recycling into the core of automotive manufacturing.