Gasgoo Munich- The Ministry of Industry and Information Technology (MIIT) recently issued the "Announcement on Abolishing and Revising Relevant Policy Standards for 'Cascade Utilization' of Waste Power Batteries for New Energy Vehicles and Regulating Relevant Industry Activities" (hereinafter referred to as the "Announcement"). The directive redeploys the framework for recycling used power batteries, aiming to eliminate the market inertia surrounding the concept of "cascade utilization." The move is designed to stop companies from simply dismantling and repackaging aging batteries to pass them off as new or high-quality products for profit, thereby standardizing market order and safeguarding public safety.
According to the MIIT, the rapid expansion of the new energy vehicle sector has driven a yearly surge in retired power batteries, pushing the industry into a phase of large-scale decommissioning. In recent years, some firms have processed these used units—through testing, sorting, dismantling, and reassembly—into battery products for backup power in telecom base stations. This practice is what the industry has known as "cascade utilization."
Yet, used batteries often suffer from inconsistent performance and varying residual capacity. Without rigorous quality control, simple dismantling and reassembly can lead to thermal runaway caused by overcharging, short circuits, or impact—posing serious safety hazards. To mitigate these risks and restore order, the MIIT and other agencies have rolled out a series of regulations governing "cascade utilization," covering everything from product design and testing to labeling and certification.
The MIIT noted that in practice, some companies have exploited the "cascade utilization" label to produce substandard batteries. This has blurred the lines for downstream businesses and consumers, making it difficult to distinguish safe from unsafe products and creating confusion that endangers public safety.
What signals does this announcement send? According to the Department of Energy Conservation and Comprehensive Utilization at the MIIT, there are four key takeaways:
First, the "cascade utilization" concept is being formally scrapped. Under the "Interim Measures for the Management of Recycling and Comprehensive Utilization of Waste Power Batteries for New Energy Vehicles," dated December 31, 2025, "comprehensive utilization" is redefined strictly as resource recovery—processes like dismantling, crushing, sorting, and smelting. The definition of "cascade utilization" is being removed entirely.
Second, the rules for remanufacturing batteries from used cells are tightening. The announcement establishes a clear benchmark: any used power battery seeking re-entry to the market must fully meet the quality and safety standards of its intended application.
Crucially, the announcement draws a hard safety line: it explicitly bans these products from applications restricted by law or mandatory standards. The prohibited list currently includes electric bicycles, balance bikes, scooters, energy storage systems over 100 kWh, power banks, and toys—categories directly tied to consumer safety.
Third, a top-down cleanup is underway to unify industry management standards.
Fourth, while the announcement delists 100 companies previously recognized under "cascade utilization" guidelines, it does not halt their legal operations. Firms that continue to meet regulatory and quality standards can proceed with business as usual.
