February 27, 2026: China is preparing to launch a digital battery passport-style scheme aimed at boosting recycling and traceability in the new energy vehicle (NEV) sector.

Unlike the EU battery passport scheme coming into force — which critics say has fundamental reporting difficulties in its cradle to grave approach — the Chinese scheme is less focused on the initial stages of sourcing before the battery is manufactured.

The move to strengthen management of used NEV batteries will start on April 1, according to interim measures jointly issued by several government departments including the Ministry of Industry and Information Technology (MIIT), China’s Xinhua state news agency reported.

Each power battery of NEVs — which include electric vehicles and plug-in hybrid electric vehicles — will be assigned a digital identity under the new measures.

MIIT said the measures would help establish a national NEV power battery traceability information platform alongside a digital ID management system, as part of a “full-channel, full-chain, and full-lifecycle” management framework.

With power batteries from earlier NEVs reaching the end of their service life due to capacity degradation, the volume of retired batteries is growing significantly, MIIT said.

The move comes as China’s NEV industry has expanded rapidly. According to government data, EV production and sales both in 2025 exceeded 16 million units, accounting for over half of domestic new vehicle sales.

Industry experts note that the regulation is timely, given that China is entering a phase of large-scale battery retirement, with projected used battery generation exceeding one million tonnes by 2030.

China initiated a three-year special campaign targeting illegal dumping and the disposal of solid waste in June last year, including scrapped motor vehicles, waste electronic products, retired new energy equipment and used power batteries.

A report published last August by Wood Mackenzie said China was on course to open up a new route in the global race for EV market dominance — steering away from price wars to innovation.

The report said as the sector faces substantial lithium chemical oversupply, initiatives in China would include a focus on recycling investment, stricter environmental impact approvals and supply chain diversification.