China Mandates Accurate Battery Health Disclosure for Electric Vehicles

China is set to implement a new standard requiring electric vehicle (EV) and plug-in hybrid manufacturers to accurately disclose the real health status of their batteries. This regulation aims to standardize battery life reporting across the Chinese EV industry, which is currently grappling with the challenge of verifying the usability of older vehicles amid rapid model development. The new rule mandates that the displayed battery life, measured by the State of Certified Energy (SOCE), must not deviate by more than 5% from the battery's actual capacity. SOCE reflects the ratio of the battery’s current energy storage compared to when it was new, providing buyers with a clear indication of battery performance over time.

Additionally, the standard sets minimum battery capacity thresholds over time: after five years or 100,000 kilometers, batteries must retain at least 82% of their original capacity; after eight years or 150,000 kilometers, at least 75%; and after ten years or 200,000 kilometers, at least 70%. These requirements are designed to ensure a stable second-hand EV market by guaranteeing long-term battery reliability. Currently, battery replacement costs can exceed half the value of an EV, making used EV purchases risky. By enforcing these standards, the Chinese government aims to provide a form of long-term battery reliability assurance, ensuring vehicles remain functional even after a decade of use.

This move is expected to influence the global EV industry, as China is a major player in electric vehicle production and consumption. The new regulations address a critical consumer concern and could help boost confidence in the longevity and resale value of electric vehicles.