February 6, 2025: China is increasing subsidies for the replacement of lithium battery e-bikes with new models powered by lead-acid batteries, according to state media.

The Ministry of Commerce is among government departments promoting the higher subsidies for trade-ins “given the higher safety performance and broader applications of lead-acid battery e-bikes”, the Xinhua News Agency reported on January 23.

Local governments across the country are being urged to accelerate the approval process for consumers to receive subsidies — or apply subsidies directly at the point of sale.

According to Xinhua, old electric bicycles are already being recycled at the local scrap market price and dismantled, which the MoC said aims to phase out obsolete e-bikes that pose safety risks.

In 2024, the trade-in program saw over 1.38 million electric bicycles exchanged, with subsidy funds exceeding RMB600 million ($84 million), driving sales of around RMB4 billion, according to the MoC.