China’s Stricter Battery Safety Standards: Who Will Be Affected?

The Strictest Battery Safety Regulation in History: Who Is Affected?

Recently, the Ministry of Industry and Information Technology (MIIT) announced a mandatory national standard entitled “Safety Requirements for Power Batteries Used in Electric Vehicles” (GB38031-2025), which will take effect on July 1, 2026. This new standard is a revised version of the 2020 edition and sets higher safety requirements for power batteries used in electric vehicles.

The primary updates in the new standard focus on the technical requirements for thermal diffusion testing. The requirement has changed from providing an alarm signal for thermal events five minutes before fire or explosion to ensuring that batteries do not catch fire or explode (while still requiring an alarm) and that smoke does not harm occupants. Furthermore, the new standard clarifies temperature requirements, power state, observation time, and vehicle testing conditions. It also introduces a bottom impact test to evaluate the protective capabilities of the battery when subjected to impacts and mandates safety tests after 300 fast charge cycles to ensure no fire or explosion occurs during external short circuit tests. This new standard can be considered the strictest battery safety regulation ever.

According to Yu Qingjiao, the secretary-general of the ZGC New Battery Technology Innovation Alliance, this new regulation marks the first time that the requirement of “no fire, no explosion” has been elevated from a technical reserve of enterprises to a mandatory standard, effectively ending the industry’s complacency regarding the risks of thermal runaway and signaling the beginning of a “zero tolerance” era for power battery safety.

Technological Experts Remain Calm

The market for new energy vehicles (NEVs) in China is growing at an unprecedented pace. In the first quarter of this year, the production and sales of NEVs reached 3.182 million and 3.075 million respectively, marking year-on-year increases of 50.4% and 47.1%, with NEV sales accounting for 41.2% of total new car sales. Consequently, battery safety issues have garnered increasing attention. Contrary to common perceptions, the fire incidence rate for NEVs is actually lower than that of traditional fuel vehicles. According to statistics from CCTV, the fire occurrence rate for NEVs has decreased from 0.185% in 2021 to 0.096% in 2023, while the rate for fuel vehicles remains around 0.15%.

Zhuxichan, director of the Automotive Safety Technology Research Institute at Tongji University, has also stated that “with technological advancements, the probability of fire in NEVs is comparable to that of fuel vehicles, below 0.005%.” The heightened focus on electric vehicle fires stems from the fact that battery fires are more challenging to extinguish than gasoline fires and have a higher re-ignition rate. Dong Yang, president of the China Automotive Power Battery Industry Innovation Alliance, emphasized that “the accident rate of electric vehicle fires should be lower than that of fuel vehicles, and this is statistically supported; however, our experience in handling electric vehicle incidents is not as robust as that for fuel vehicles.”

Despite this, power batteries remain the primary cause of fires in electric vehicles. In 2024, the State Administration for Market Regulation issued recall notices for 2.32 million vehicles due to fire risks, with 380,700 of these being NEVs, including 283,000 related to battery issues. Causes of battery fires include traffic accidents, bottom collisions, and thermal runaway. Bao Huanhuan, deputy director of the Automotive Fire Safety Research Joint Laboratory, explained, “Thermal runaway in power batteries is an uncontrollable phenomenon that occurs when temperatures rise during use. Improper charging behaviors, bottom impacts, and prolonged water submersion can all lead to thermal runaway.” While thermal runaway is a direct cause of battery fires, technological upgrades can significantly reduce its likelihood and severity.

According to a recent report from the Ministry of Industry and Information Technology, current battery technology can achieve the goal of “no fire, no explosion” following thermal runaway. Yang Hongxin, chairman and CEO of Honeycomb Energy, stated that the company has been developing batteries under the standard of no thermal runaway for the past two years, and all its clients can now meet the new standard. He also revealed that many companies were aware of the drafting of the standard two years ago and have already complied with its requirements. For most leading enterprises, the technical challenge of “no fire, no explosion” has been successfully overcome. In 2020, CATL already produced batteries featuring the first-generation thermal diffusion-free (NP) technology, which meets the new standard six years in advance. CATL continues to iterate on NP technology, including NP2.0, which achieves high-pressure gas separation, and NP3.0, which prevents smoke during thermal runaway.

A Technological Revolution in the Industry

The high safety requirements of the new standard raise the technical barriers for power battery manufacturers and exacerbate the Matthew Effect in the industry. Developers must redesign battery pack structures to enhance bottom protection and thermal management systems, including integrating high-strength crash beams at the battery pack’s base and ensuring that thermal runaway protection materials meet high-temperature and flame-retardant criteria. After the new regulations are implemented, it is expected that the cost of battery systems will increase by 15% to 20%, forcing small to medium-sized manufacturers with insufficient R&D capabilities to face elimination. According to a survey conducted by the MIIT, 78% of companies have the technical reserves to ensure batteries do not catch fire or explode, while the remaining 22% must complete modifications by 2026-2027, with some companies extending their timelines to 2030. Data from Gaogong Industry Research Institute indicates that there are currently more than 50 domestic power battery manufacturers, but under the principle of survival of the fittest, it is projected that the number will drop to fewer than 30 by 2027.

The new standard’s safety requirements will allow technically advanced leading companies to quickly gain a competitive edge. Currently, CATL’s CTP3.0 Kirin battery employs a reinforced structure with horizontal and vertical beams, increasing its compression resistance by 30%. BYD’s blade battery is equipped with a self-developed “smart eye” system that can provide 10 minutes of early warning for thermal runaway. These technologies become powerful tools for market differentiation among battery suppliers.

The cost pressures and technical barriers introduced by the new standard will serve as catalysts for the development of battery swapping models. This model reduces user costs through “vehicle-battery separation” while allowing centralized management of battery assets, facilitating the implementation of uniform safety standards and maintenance, closely aligning with the safety focus of the new standard. The centralized charging and discharging management of the battery swapping model can effectively monitor battery health, preventing safety hazards due to improper usage (such as frequent fast charging). Furthermore, the 3-minute rapid battery swap efficiency significantly alleviates user concerns about range anxiety.

The implementation of the new standard marks a shift in the power battery industry from “scale expansion” to “quality leadership.” Companies that focus on safety innovation will build robust barriers, while those engaging in price wars will be forced to adapt. The battery swapping model will open new avenues for growth through a revolution in energy replenishment.