Many MindedBeijing drops its push for retired EV batteries to find a second job
China's regulators have moved from encouraging the reuse of retired EV batteries to requiring that each product be qualified for the specific job it does. New rules effective April 2026 repealed the earlier cascade-utilization framework. A July 30 announcement from the Ministry of Industry and Information Technology then withdrew special recognition for cascade-utilization companies and told industry associations to stop promotional activities tied to that category.
This reverses the direction set by a 2021 policy, which urged companies to give retired batteries a second life in stationary storage, backup power and charging infrastructure. It is not a ban. Retired vehicle batteries can still go into suitable applications if the resulting products meet applicable standards. Reuse in electric bicycles and other restricted applications is prohibited. The ministry cites safety concerns about inadequately tested, reassembled batteries with varying remaining capacity and inconsistent cell condition. Author Michael Barnard notes that some reporting wrongly calls this a ban.
For energy abundance, the point is cost. The hope was that spent EV packs would supply cheap grid storage. But new lithium iron phosphate batteries have become much cheaper, while old packs differ in age, condition, design and operating history. Testing, repackaging, controls and warranties can consume the savings from reusing cells. China had 551,400 new-energy urban buses by the end of 2025, 87.5% of its urban bus fleet, so large volumes of retired packs will eventually arrive. With reuse no longer promoted, recycling looks more important as the default route.
Watch how much of the second-life market develops under the standards-based rules. That depends on product quality and economics, and it is not settled. Barnard's view is that operators with known battery histories and suitable stationary uses may have an edge over firms buying mixed retired packs. That, and his points about Europe, are his opinion. The source is a short summary, and fuller analysis sits in a paywalled briefing.
Source: CleanTechnica