New Battery Standards Spark Price Increases in the Automotive Industry

On May 13, several automotive manufacturers unveiled new models on what was deemed an auspicious day. Major launches included the fourth-generation Boyue L, the all-new IM L6, and the new Weipai Gaoshan, among others. Almost all car manufacturers mentioned their readiness to comply with the upcoming GB 38031—2025 “Safety Requirements for Power Batteries Used in Electric Vehicles,” which will take effect in 2026, referred to as the “2025 New National Standard.”

Chery, during its “Safety Night,” stated that the new standard requires that thermal runaway should not spread for at least two hours, and they can achieve a spread-free period of 48 hours. Just days prior, the National Technical Committee for Automotive Standardization formed a subcommittee to draft the “Durability Requirements and Test Methods for Onboard Power Batteries in Electric Vehicles,” which focuses on battery safety and performance, guiding the development of the next generation of power batteries. Notably, the durability requirements highlight that nickel-cobalt-manganese (NCM) batteries do not perform as well in terms of battery degradation compared to lithium iron phosphate (LFP) batteries, suggesting that NCM batteries will face greater regulatory challenges under the same conditions.

For years, NCM batteries have been preferred in mid-to-high-end models due to their chemical properties. As the thresholds for using NCM batteries increase, the price point for new vehicles equipped with these batteries may also rise.

The 2025 New National Standard is considered the “strictest battery safety regulation to date.” It upgrades the safety requirements for diffusion tests following thermal runaway from “no fire or explosion within 5 minutes” to “no fire or explosion (still requires alarm) after thermal runaway,” ensuring that “smoke does not harm occupants.” This is the first time that “no fire or explosion after thermal runaway” has been mandated as a compulsory standard. In terms of bottom impact testing, the new standard mandates that battery packs must not leak, catch fire, or explode when struck by a 30mm diameter steel ball with an energy of 150J, applying this requirement to all passenger vehicles. This raises the bar for manufacturers to optimize battery pack design and enhance protective materials.

In recent years, the number of fast-charging models has surged, but their reliability and actual cycle life have not been thoroughly validated. The new standard includes additional safety tests for fast-charging cycles, requiring that after 300 fast-charging cycles (state of charge range of 20% to 80%), the battery still passes external short-circuit tests to prevent performance degradation and safety hazards.

Currently, domestic standards only cover the cycle life testing methods for components of power batteries (GB/T 31484-2015), which focus solely on battery cells without testing the entire vehicle. Due to the singular nature of testing conditions, including temperature and working environments, real-world scenarios affecting battery degradation have not been adequately taken into account. The recently announced “Durability Requirements” impose new expectations on battery cycle life, such as maintaining a minimum performance requirement (MPR) of 82% for pure electric vehicles after five years or 100,000 km of use. It is noteworthy that the requirements for battery health precision testing for plug-in hybrid vehicles have adjusted the MPR from 85% to 82%. This requirement is similar to the battery health metrics now common in smartphones, ensuring that regardless of whether consumers purchase a pure electric or a plug-in hybrid vehicle, the battery health must remain above 82% after five years of use.

A source involved in the standard’s formulation revealed that the next generation of power battery energy consumption standards will include requirements for performance in high and low-temperature conditions, guiding companies and battery manufacturers to address the challenges faced by electric vehicles in extreme climates. This will also heighten demands on companies’ energy management capabilities, particularly for pure electric models.

The implementation timeline for the new standard indicates that it will take effect for newly approved vehicle types starting July 1, 2026, and for already approved vehicle types starting July 1, 2027. This means that battery manufacturers and vehicle producers not yet compliant with the new standard have a one-year grace period to enhance their technologies.

Recently, CATL announced that its Kirin, Shenzhou, Xiaoyao, Chocolate battery swap, and autonomous driving dedicated battery packs have all passed the new standard certification, covering passenger cars, battery swap, and commercial vehicle sectors. Almost concurrently, Zeekr, Lantu Motors, Geely, and Leap Motor also announced they received testing reports and certifications from authoritative third-party agencies, joining the ranks of the first batch of manufacturers to obtain new standard testing certifications. On the joint venture side, Buick announced that its pure electric E5’s Ultium battery meets the new standard ahead of schedule.

In the recently published “Durability Requirements,” the standard drafting unit found that battery type significantly affects battery durability, with NCM batteries exhibiting poorer durability compared to LFP batteries. Additionally, as driving mileage increases, battery degradation becomes more pronounced; conversely, an increased proportion of AC charging mitigates battery degradation.

Since the announcement of the 2025 New National Standard, there has been considerable discussion regarding NCM batteries within the industry. Compared to LFP, NCM batteries are more reactive and less stable, making them more prone to thermal runaway, which increases regulatory challenges. Recently, CATL announced that its NCM battery pack with NP (non-thermal runaway) technology has successfully passed the stringent tests of the new standard, becoming the industry’s first high-rate fast-charging battery to receive a testing report.

As the safety and lifecycle advantages of NCM batteries diminish under the new regulations, the technical requirements for automotive and battery companies will intensify. The principle is straightforward: as the threshold for using NCM batteries rises, companies lacking substantial technical reserves may struggle to adapt. Meanwhile, the performance ceiling of LFP batteries is lower, and consumers often desire a blend of capabilities. Consequently, manufacturers typically opt to equip mid-to-high-end models with NCM batteries. The new regulations will further challenge companies to balance performance, safety, and cost effectively.

This shift may lead to increased reliance on battery suppliers by companies lacking battery technology expertise. In fact, every upgrade of national standards serves to phase out outdated technologies. The integration of new technologies often results in the depreciation of older ones. Thus, companies that can proactively adapt and upgrade their technologies will maximize value for consumers. For those still awaiting the new standard certification, the window of opportunity is closing rapidly. Adhering to the national standard represents merely a passing grade; particularly for companies aiming to create premium offerings through NCM battery configurations, the rising barriers may compress their pricing power. The dilemma of whether to raise prices or adopt lower-cost alternatives will pose significant challenges ahead.