China strengthens EV battery recycling and traceability systems

China is implementing stricter management and recycling systems for electric vehicle (EV) batteries to address growing waste. Projections suggest that annual battery waste in the country could exceed 1 million tons by 2030, following an estimated 500,000 tons this year. To prevent environmental pollution from electrolytes and metals, the government is establishing a nationwide traceability system.

Under new regulations, starting April 1, 2026, every new energy vehicle battery must be assigned a unique digital identification code. This allows for a closed-loop management process, tracking batteries from production and use to dismantling and final recycling. Specialized facilities are currently achieving high recovery rates for valuable materials, including up to 99.6% for nickel, cobalt, and manganese, and over 90% for lithium.

Parallel to recycling efforts, China continues to dominate the global battery market, holding over 70% of the market share with six of the world's top ten manufacturers. The Ministry of Industry and Information Technology reported that EV battery sales reached 790.4 GWh in the first seven months of the year, a 37.1% increase year-on-year. Research is also shifting toward next-generation technologies, such as solid-state batteries, to maintain international competitiveness.