A proposed nationwide tracking system will give every EV battery a digital record, improving transparency in secondhand car sales and recycling.
By Huo Tingting
China is preparing to introduce digital identification cards for electric vehicle (EV) batteries, creating a nationwide system to track each battery throughout its life cycle, from production and installation to retirement and recycling.
The Ministry of Industry and Information Technology (MIIT) published draft rules, the Interim Provisions on the Management of Digital Identification Cards for New Energy Vehicle Power Batteries, for public consultation on Nov. 5.
The initiative marks a shift towards a system of one battery, one code and full traceability, aimed at tightening oversight of the rapidly growing battery recycling market.
From fragmented tracking to full-life-cycle oversight
China’s EV production and sales have expanded rapidly in recent years. As batteries in vehicles sold during the industry’s earlier growth phase lose capacity and reach the end of their useful lives, the volume of retired batteries is increasing. China is approaching a period of large-scale battery retirements, with industry research estimating that annual volumes of discarded power batteries will exceed 1 million metric tons by 2030.
Recycling and reusing these batteries has become an important issue for the sustainable development of both the EV and battery industries.
China began requiring battery coding and registration in 2018, establishing an initial traceability framework. However, information remained scattered across separate systems, making it difficult to track batteries effectively across the supply chain.
A regulatory foundation for a more integrated approach was established in April 2026, when the Interim Measures for the Recycling and Comprehensive Utilization of Retired New Energy Vehicle Power Batteries came into force. A national information platform for tracking EV power batteries was launched alongside the measures.
The new digital ID system will use a unique 24-digit battery code prescribed by national standards to link information across nine stages of the battery life cycle, covering 96 data points. These include design, production, sales, vehicle installation, maintenance, dismantling and recycling.
Each battery will effectively have a continuously updated digital record, rather than being tracked as an isolated industrial component.
The system is designed to address problems caused by fragmented information, including difficulties monitoring battery movements and determining responsibility when batteries change hands. By making their origins and destinations verifiable, regulators hope to prevent retired batteries from ending up at unregulated workshops and ensure they enter legitimate recycling and reuse channels.
Greater transparency for used EVs and battery recycling
The changes could have a direct impact on China’s secondhand EV market. Used electric cars have long been something of a gamble for buyers, who often struggle to verify battery health, degradation patterns and previous repair records. This uncertainty has contributed to relatively weak resale values for used EVs.
Under the draft rules, automakers will be required to provide owners with key battery information through in-vehicle systems or mobile apps. This will include the battery code, manufacturer, production date and warranty period. MIIT will also establish a unified online portal for checking the information.
Greater transparency could help reduce information asymmetry and establish more reliable standards for assessing used EVs. Vehicles with complete, verifiable battery histories may command higher resale prices.
For the recycling industry, the digital ID system could give compliant operators an advantage over unregulated small-scale workshops. The ability to verify a retired battery’s origin, transaction history and destination will make it harder for informal operators to compete through cash transactions and opaque trading practices.
Such workshops often avoid licensing requirements, invoicing, taxes and environmental treatment costs, allowing them to offer higher purchase prices while operating at lower costs. The new system could narrow that advantage, making the traceability and regulatory compliance of approved recycling companies a more tangible competitive strength.
Wang Peng, director of MIIT’s Department of Energy Conservation and Comprehensive Utilization, said applying digital technology to full-life-cycle battery traceability was an important institutional innovation under the April regulations.
The system will also help recycling companies determine how batteries should be handled. By accessing dismantling specifications and maintenance records through the platform, operators will be better able to decide whether a retired battery is suitable for a second life in less demanding applications or should instead be dismantled for material recovery.
Having access to this information when batteries enter recycling facilities should improve operational efficiency. It will also help Chinese companies meet increasingly stringent international requirements for carbon footprint management and proof of origin.
Battery producers and automakers face compliance upgrades
Battery manufacturers and automakers are likely to face the most immediate adjustments.
Battery producers will need to assign codes and upload relevant information during manufacturing. Automakers, meanwhile, will have to ensure battery details are included in vehicle certification documents and in-car systems.
Both groups will need to upgrade their existing information management systems to connect with the national traceability platform.
Larger companies with established digital management infrastructure are likely to face lower adaptation costs, while smaller battery manufacturers may need to make additional investments to meet the requirements. The changes could contribute to further industry consolidation.
Greater transparency around battery condition could also help insurers assess EV-related risks more accurately, providing data to improve insurance pricing and reduce repair costs.
Among companies likely to be well positioned are major battery manufacturers with established recycling operations, including CATL (3750.HK) (300750.SZ) and BYD (1211.HK) (002594.SZ), whose integrated business models could make it easier to comply with the new requirements.
Specialist battery recyclers such as GEM (002340.SZ) and Brunp Recycling, which is majority owned by CATL, could benefit from more reliable supplies of retired batteries as traceability improves. Automotive repair businesses and secondhand car trading platforms will also need to upgrade their services to incorporate battery information checks, making transactions more transparent.
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