On May 26, 2025, Mr. Li Lecheng, the Party Secretary of the Ministry of Industry and Information Technology (MIIT), convened a kick-off meeting for the National Task Force On Recycling and Utilization of Traction Batteries for New Energy Vehicles (i.e., Electric Vehicles). The meeting gathered relevant members from the task force and was conducted with the objective to coordinate deployment of key tasks to build a sound recycling and utilization system for traction batteries.

The meeting emphasized that promoting the recycling and utilization of traction batteries is vital to ecological and environmental protection, public safety, and the high-quality development of China’s NEV and traction battery industries. Balancing high-quality development with high-level safety, and accelerating the establishment of a standardized, safe, and efficient recycling and utilization system are critical.

The meeting further highlighted that the working group should adhere to a people-centered development philosophy, follow the requirements of the Action Plan for Improving the NEV Traction Battery Recycling and Utilization System which was issued by MIIT earlier in 2025, adopt a problem-oriented and collaborative approach, work with clear targets and timelines, and ensure that all tasks are implemented thoroughly and effectively.

Key priorities include:

  • Improving the regulatory and standards system: speeding up the formulation of relevant laws and regulations; developing and revising mandatory standards such as lithium battery safety technical specifications; and guiding the industry’s high-quality development through standards and legal tools.
  • Strengthening full-chain supervision and management: focusing on key stages such as battery production, vehicle scrapping, and battery dismantling and reuse; addressing regulatory bottlenecks across the entire process; applying digital technologiesto enhance battery flow monitoring; and cracking down on illegal dismantling, environmental violations, and unlicensed operations.
  • Enhancing industry capacity building: increasing collaborative R&D and the promotion of key technologies, processes, and equipment; improving industry governanceand implementing dynamic management of enterprises under the industry norms; supporting leading enterprises in becoming stronger and more competitive; and guiding the industry towards healthy and sustainable development.

In February 2025, the State Council of China revealed that the country had entered the stage of large-scale NEV battery retirements. Enhancing recycling and utilization capacity of the NEV batteries and establishing a sound management system are pressing priorities. There are statistics showing that by the end of 2024, the national stock of NEVs reached 31.4 million, with the installed capacity of traction batteries leading globally for many years. As the number of retired traction batteries increases year by year, their recycling and utilization have drawn much attention. A report predicts that by 2030, the market size of power-battery recycling will exceed 100 billion yuan.

This kick-off meeting signified China’s strategic push to address the challenges of large-scale NEV battery retirements. With the battery recycling market projected to exceed 100 billion yuan by 2030, building a standardized, safe, and efficient system has become an urgent priority. The initiative will shape future regulatory and market dynamics, making it essential for European stakeholders to closely monitor developments and engage proactively to ensure alignment and competitiveness.