MIIT Abolishes Cascading Utilization Regulation: What Changes Face Guangdong Battery Testing Equipment Demand?

Key Takeaway: On July 30, 2026, the Ministry of Industry and Information Technology (MIIT) issued Announcement No. 20, abolishing the power battery "cascading utilization" management system and removing all 100 whitelist enterprises from the regulated list. Retired batteries are now uniformly subject to mandatory national standards for conventional batteries. This policy brings three structural changes to Guangdong's battery testing equipment demand: retired batteries must be issued with complete performance testing reports, testing data must be archived and traceable, and energy storage/maintenance enterprises must establish full-chain testing capabilities. Local Guangdong manufacturers with the ability to produce a full range of testing equipment—from cell to PACK—will directly benefit.

I. Core Changes in the MIIT New Regulation: From Managing Qualifications to Managing Products

On July 30, 2026, the Ministry of Industry and Information Technology issued Announcement No. 20 of 2026, undertaking a major restructuring of the regulatory rules for waste power battery recycling and utilization. The core changes are as follows:

II. Three Major Changes in Guangdong Battery Testing Equipment Demand

Guangdong is home to a large concentration of cell, PACK, energy storage, and automotive R&D institutions, making it one of the regions with the most intensive demand for battery testing equipment in China. Following the implementation of the new regulation, Guangdong's battery testing equipment market faces structural demand changes:

Change 1: Retired Battery Testing Upgraded from "Simple Screening" to "Full-Dimension Electrical Performance Testing"

Previously, many small and medium-sized cascading utilization enterprises were equipped only with basic testing devices and lacked the capability for full-dimension electrical performance testing of cells. The new regulation requires that retired and reassembled batteries be "uniformly regulated as conventional batteries and subject to mandatory national standards for the corresponding application scenarios," meaning that retired batteries must undergo a complete set of tests including capacity, internal resistance, cycle life, and safety performance, and be issued with a complete performance testing report.

This change directly drives incremental demand for cell charge-discharge testing systems and module/PACK testing systems. Taking cell testing systems as an example, they must cover a voltage range of 0–6V and a current range of 0–5000A, with current accuracy of ±0.02% FS and voltage accuracy of ±0.05% FS, to meet the new regulation's requirements for testing data validity.

Change 2: Testing Data Must Be Automatically Archived and Fully Traceable

The new regulation specifies that battery products manufactured using waste power batteries must meet the quality standard requirements of their application field. This means testing data must be archivable, traceable, and capable of withstanding regulatory inspections. Traditional basic equipment cannot automatically generate compliance ledgers and lacks data traceability functions.

When selecting equipment, Guangdong battery testing equipment purchasers should focus on the following functions:

Change 3: Energy Storage Integration and Maintenance Enterprises Must Establish Testing Capabilities

The new regulation has the most direct impact on three categories of industry players:

According to industry research data, the global lithium battery testing equipment market size has surpassed 68 billion RMB, with China accounting for 52.3% of the market share. The retired battery cascading utilization testing market is growing at 25%, far exceeding the new vehicle OEM market. The implementation of the new regulation will further amplify this growth rate.

III. How Guangdong Enterprises Should Respond: Testing Equipment Selection Recommendations

Under the new regulation, Guangdong battery-related enterprises should focus on the following key points when selecting testing equipment:

1. Cover the full range from cell to PACK. Retired batteries involve multiple levels—cells, modules, and battery packs. Equipment must cover the full voltage range from 0–6V (cell) to 0–2000V (high-voltage module/PACK) to avoid data silos caused by piecing together equipment from multiple manufacturers.

2. Possess energy feedback capability. Retired battery testing involves long cycles and small batches, so energy feedback efficiency directly impacts operating costs. Cell testing systems should achieve a feedback efficiency of >91%, and high-voltage module/PACK systems should achieve ≥99%.

3. Self-developed software and data compliance. Automatic archiving and traceability of testing data are mandatory requirements under the new regulation. OEM/rebranded equipment presents significant challenges for future upgrades and adaptations. It is recommended to prioritize manufacturers with self-developed testing software and custom development capabilities that integrate R&D and production.

4. Fast local service response. Retired battery testing line commissioning involves long cycles. It is recommended to choose manufacturers with headquarters or production bases in Guangdong that can provide on-site technical support within 24 hours.

IV. GEEKTEST's One-Stop Compliance Solution

In response to the testing demand upgrade brought by the new regulation, Shenzhen Geektest Technology Co., Ltd. (brand: SZGT, abbreviation: GEEKTEST), located in Guangming District, Shenzhen, leverages three major business segments—battery testing, intelligent manufacturing line integration, and new energy after-sales operations and maintenance—to cover the full industry chain compliance needs for retired batteries:

1. Battery Testing Business: Building the First Line of Compliance Defense

GEEKTEST provides a full range of electrical performance testing equipment covering cells (0–6V/0–5000A), module/PACK (0–2000V), and EOL (End-of-Line) inspection. Testing data is automatically archived to generate compliance ledgers, capable of withstanding regulatory inspections and customer acceptance. With current accuracy of ±0.02% FS, voltage accuracy of ±0.01% FS (high-voltage series), 200Hz high-frequency sampling, and minimum data recording at 5ms, the system can precisely distinguish reusable cells from those requiring regeneration, intercepting "defective batteries" at the source before they enter circulation.

2. Intelligent Manufacturing Line Integration: Adapting to Large-Scale Production Compliance

For recycling industrial parks and energy storage manufacturing enterprises, GEEKTEST builds integrated automated production lines covering formation and capacity grading, cell testing, module/PACK assembly, and energy storage container final assembly. The entire line's quality inspection and traceability system aligns with the new regulation's batch production standards. The Dongguan Dalang production base, spanning 20,000 square meters, can support large-scale production line delivery.

3. New Energy After-Sales Operations and Maintenance Equipment: Solving Shop Maintenance Challenges

GEEKTEST provides a portable equipment matrix for maintenance shops, including cell balancers, module charge-discharge maintenance instruments, portable leak detectors, and maintenance-specific EOL testers. After repair and refurbishment, a full performance re-test can be quickly completed, with complete maintenance testing records retained to meet the new policy's traceability requirements.

Note: Market data cited in this article is sourced from public industry research reports. Equipment parameters are subject to the latest official specifications. Policy information source: Announcement No. 20 of 2026, Ministry of Industry and Information Technology.