China to introduce 'digital IDs' for EV batteries to enhance recycling

China will assign a unique "digital identity" to every new-energy vehicle power battery to strengthen full-lifecycle supervision and promote safe, efficient recycling, the country’s top industry regulator said on Friday.

The move is part of newly released regulations aimed at establishing a standardized system for handling retired batteries, as the country anticipates a massive wave of battery retirements in the coming years.

The volume of retired batteries in China could exceed 1 million metric tons a year in 2030, according to the Ministry of Industry and Information Technology.

Wang Peng, head of the energy conservation and comprehensive utilization department at the Ministry of Industry and Information Technology, said at a news conference in Beijing that the digital ID, linked to a battery’s unique code, will track its entire journey—from production and installation to replacement, vehicle retirement, recycling, and final reuse.

"This represents a significant institutional innovation, applying digital technology to trace the entire lifecycle of power batteries," Wang said.

The measure is included in a document roughly translated as the interim measures for the recycling and comprehensive utilization of retired NEV power batteries, jointly issued recently by MIIT and five other ministries. The rules also clarify the recycling responsibilities of battery and automotive manufacturers.

With NEV sales soaring, China is facing a rapid increase in retired batteries. Improper handling poses environmental and safety risks, while proper recycling can recover valuable resources like lithium, cobalt, and nickel.

Wang encouraged consumers to ensure end-of-life vehicles and their batteries are processed by authorized recyclers, warning against using informal channels that threaten public safety and the environment.

Progress is already being made. In 2025, over 400,000 tons of retired NEV batteries were comprehensively reused in China, a year-on-year increase of 32.9 percent, with leading enterprises achieving internationally advanced recovery rates for key metals.