China Steps Back From Promoting Second-Life EV Batteries

China repealed its cascade-utilization framework for retired EV batteries effective April 2026, and on July 30 the industry ministry withdrew special recognition for such companies. Reuse is not banned outright, but is restricted — notably in e-bikes — over safety concerns about reassembled packs with uneven cell condition.

• China had 551,400 new-energy urban buses by end-2025, 87.5% of the fleet
• The cascade-utilization framework was repealed effective April 2026
• Reuse of retired EV batteries in e-bikes is prohibited
• Cheaper new LFP batteries undercut the economics of second-life packs