MIIT New Policy Takes Effect: The End of the Cascade Utilization Era, Power Battery Recycling Shifts to Product Quality Control

Time:2026/08/06 Reading volume:12 Source: Shenzhen Geektest Technology Co., Ltd.

Released on July 30, 2026, a special official announcement issued by the Ministry of Industry and Information Technology (MIIT) restructures the supervision rules for waste power battery recycling and utilization. The old development model relying on cascade utilization qualifications has come to a complete end. The core of supervision has shifted from controlling enterprise qualifications to controlling power battery product quality, so as to resolve safety risks caused by non-standard refurbished batteries.


I. Two Core Adjustments of the New Policy


  1. The independent management system for cascade utilization is canceled. All relevant specifications for cascade utilization are abolished, and the whitelist of cascade utilization enterprises is no longer maintained. Only the qualifications for battery material recycling enterprises remain valid. Retired reused cells, modules and battery packs shall be regulated as conventional batteries and comply with mandatory national standards corresponding to their application scenarios.


  1. Hard red lines for product quality are set: refurbished batteries are prohibited from flowing into restricted fields such as electric two-wheelers. The secondary commercial application of batteries is only recognized with complete performance test reports, and enterprise qualifications will no longer serve as compliance certificates.


Root Causes for the Policy Release

Simply reassembled retired batteries suffer poor consistency, which easily leads to short circuits and thermal runaway. The circulation and traceability of non-standard batteries are difficult to track, and rampant safety chaos has forced the reform of supervision regulations.


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II. Higher Compliance Thresholds for Three Types of Industry Entities


1. Cascade Utilization Enterprises Need to Upgrade Testing Capacity
Enterprises that previously relied on the cascade utilization whitelist to undertake retired battery sorting and reassembly businesses have seen the dividends of their original qualifications weakened. At present, most small and medium-sized cascade enterprises are only equipped with simple testing equipment and lack the capacity for full-dimensional electrical performance testing of cells, making it impossible to issue complete test data complying with national standards. After the new policy is implemented, enterprises are urged to take the initiative to upgrade standardized production lines and improve testing systems.


2. Energy Storage Integrators
Industrial & commercial energy storage and outdoor energy storage containers are core application scenarios for the cascade reuse of retired power batteries. In the past, to control production costs, most enterprises adopted the model of "prioritizing assembly while neglecting testing". After the new policy is released, reused reassembled batteries for cascade utilization will be subject to the national standards for brand-new energy storage batteries. Building a complete full-chain testing capacity has become an important direction for enterprises to operate steadily and adapt to the new industry regulations.


3. New Energy Maintenance Shops & 4S Stores
The new policy clarifies that power batteries after maintenance and refurbishment are classified as reassembled batteries. The previous model of only replacing cells without full system testing before delivery is no longer applicable. Shops can improve calibration links including cell balancing, charge-discharge retesting, air tightness inspection and EOL final testing, keep complete maintenance and testing files, realize full-lifecycle traceability of battery maintenance, and avoid safety and compliance risks.


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III. One-stop Full-industry Compliance Solutions from Shenzhen Geektest Technology Co., Ltd. (SZGT)


Faced with the rigid demand for industrial transformation and upgrading, SZGT covers full industrial chain compliance needs through three core business segments: power battery testing equipment, intelligent manufacturing production lines, and new energy after-sales maintenance equipment.


1. Power Battery Testing Business: The First Line of Defense for Compliance

We provide a full range of electrical performance testing equipment for cells, modules and packs, as well as customized EOL final test systems. All test data is automatically archived to generate compliance ledgers to cope with regulatory sampling inspections and customer acceptance. Our equipment accurately distinguishes reusable and recyclable cells, and blocks defective batteries from entering the market at the source.


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2. Intelligent Manufacturing Production Lines for Large-scale Mass Production Compliance

For battery recycling industrial parks and energy storage manufacturers, we build integrated automated production lines covering formation & grading, cell testing, module/Pack assembly, and energy storage container final assembly. The quality inspection and traceability system of the complete production line fully meets the mass production standards under the new policy.


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3. New Energy After-sales Maintenance Equipment to Solve Difficulties for Maintenance Shops

We supply a matrix of portable equipment for maintenance shops, including cell balancers, module testing devices, portable air tightness testers, and dedicated EOL test instruments for maintenance. After battery repair and refurbishment, shops can quickly complete a full set of performance retests and archive complete maintenance records to meet the mandatory traceability requirements of the new policy.


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IV. Long-term Industry Development Trends


This new policy drives the high-quality transformation of the power battery recycling industry. The core of industrial competition has shifted from qualifications and battery supply sources to testing capabilities, standardized production lines and full-process quality control. Relevant standard supervision will continue to tighten in the future. Enterprises that complete compliance upgrades in advance can effectively reduce policy risks. Supported by our full-industry equipment solutions, Shenzhen Geektest Technology Co., Ltd. (SZGT) assists all types of battery-related enterprises in completing compliance transformation, converts policy constraints into core technical competitiveness, and promotes the industry to develop toward standardization, high safety and high added value.


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