Analysis of the Impact of the latest policies and Regulations in the Lithium Battery Industry on Equipment

Driven by the global energy transition wave, the lithium battery industry is experiencing explosive growth. However, opportunities and challenges coexist, as a series of policies and regulations introduced both domestically and internationally have significantly raised the production thresholds for lithium equipment manufacturers and profoundly affected their export strategies. This article systematically analyzes the specific requirements of these policies and regulations and their impact, and explores ways to respond.

1. Domestic Policies and Regulations:

1.1 Driving Production Upgrades and Regulating Export Logistics1. 'Lithium-ion Battery Coding Rules' (GB/T 45565—2025) - Set to be implemented (November 1, 2025):

• Requirements: Mandatory for all newly produced lithium-ion batteries (from individual cells to systems) to have a unique identity code to achieve traceability throughout their lifecycle.
• Impact on Equipment Production: Direct and crucial. Equipment manufacturers must upgrade or develop new machinery to ensure high-precision positioning and identification functions. For example:Battery Electrode Slitting Machine / Battery Electrode Coating Machine: Must integrate high-precision coding or printing systems to ensure the electrode/roll coding is clear and traceable.
• Lithium Ion bBattery Assembly Line : Must be equipped with reliable coding reading, binding, and recording systems to ensure the coding information of each cell/module/system is accurately associated.
• Core Challenge: Enhancing the precision, stability, and data interaction capability of equipment to meet the demands for high-speed, high-precision coding under large-scale production.

1.2 Mandatory CCC certification management for lithium-ion batteries and chargers used in electric bicycles - fully effective in 2025:

• Requirements: Mandatory certification, requiring batteries to be marked with a safe usage lifespan and inscribed with a permanently unique code that can withstand high temperatures of 950°C.
• Laser coding/engraving equipment: Becomes a necessary component and must meet high-temperature resistance requirements to ensure that the codes remain identifiable under extreme conditions (such as fire).
• Production equipment (such as formation cabinets, capacity cabinets, testing devices): Requirements for precision, stability, and safety control (overcharge and over-discharge protection, temperature monitoring) are further increased to ensure that the final product's safety performance meets certification standards.
• Core challenges: Equipment must provide more reliable process consistency and integrate stricter safety monitoring and traceability functions.

1.3 "Safety Technical Requirements for Lithium Battery Transportation on Ships" - Implemented (May 1, 2025):

• Requirements: Standardize safety standards for the water transportation (maritime and inland) of lithium batteries, covering aspects like packaging, stowage, segregation, and documentation.
• Impact on equipment exports: Affects the logistics process.Equipment manufacturers exporting lithium battery production devices (especially those including battery prototypes or finished batteries) must ensure their packaging methods and transport documents (such as MSDS, UN38.3 test reports, transport certificates) fully comply with the new regulations.There may be a need to cooperate with professional logistics suppliers to adopt special packaging and transportation schemes compliant with the International Maritime Dangerous Goods Code (IMDG Code).
• Core challenges: Increasing complexity and compliance costs in export logistics, raising higher demands for supply chain management.

2. International Policies and Regulations: Revising Market Access and Raising Export Costs 

2.1 EU Battery Directive: 

Latest update (January 1, 2025 onwards): New UN 3551 (sodium-ion batteries) and UN 3552 (sodium-ion batteries installed in equipment or packaged together with the equipment) codes have been added, along with the corresponding packaging regulations P911, LP903, and LP904. 

• Impact on equipment exports: Transport compliance: Equipment exporting sodium-ion batteries must strictly adhere to the new UN numbering and packaging requirements. 
• Carbon footprint requirements (future focus): The bill requires that from the year 2028 onwards, batteries must be declared and meet increasingly lower carbon footprint thresholds. This means for equipment manufacturers: Its client (the battery factory) requires battery products with a lower carbon footprint. 
• Indirect impact: Equipment manufacturers may need to prove that their equipment can help customers produce low-carbon batteries (such as high energy efficiency, compatibility with green power, and reduction of waste), and even themselves may need to provide data on the carbon footprint of the equipment (a future trend). 
• Core challenge: Continuously monitor complex regulatory updates (transportation, sustainability, due diligence), and meet increasingly stringent environmental protection requirements. 

2.2 U.S. Tariff Policy: 

Current situation in 2025: The import tariffs on domestically produced battery power in China have been raised to 25%, and the tariffs on energy storage batteries are expected to be raised to 25% in 2026. 

• Impact on equipment exports: Directly affects costs and market strategies. 
• Cost surge: The profit margin for exporting power battery equipment has been significantly reduced, and the export of energy storage equipment is about to face the same pressure. 
• Strategic adjustment: Forces Chinese equipment manufacturers: Seek out other overseas markets (such as Europe, Southeast Asia, and South America). Explore the establishment of production bases in third countries (such as Mexico, Southeast Asia) or in the local markets of the target countries (such as the United States), for local assembly or production, in order to avoid high tariffs ("curved export"). Collaborate with local enterprises (through joint ventures or technology licensing). 
• Core challenge: Reconfiguration of global supply chain, and localization layout requires huge investment and complex operations. 

2.3 International Air Transport Association (IATA) Dangerous Goods Regulations: 

• Latest requirement (effective from January 1, 2025): Implement stricter control over the transportation of lithium batteries, including: New packaging instructions PI 965, Section II and PI 968, Section II have been revised (for lithium batteries installed in equipment or packaged together with the equipment). Implement stricter capacity/weight limits and packaging test requirements for certain lithium batteries (such as lithium metal batteries with an energy capacity greater than 100Wh). 
• Impact on equipment exports: The cost of exporting equipment (such as samples and small devices) containing lithium batteries by air transportation has increased and the process has become more complicated. It is necessary to ensure that the batteries comply with the latest aviation transportation standards. Additional packaging tests and certifications may be required. 
• Core challenge: The difficulty and cost of increasing the export of small-batch and high-velocity equipment.

3. New requirements imposed by international policies and regulations on equipment production 

• Global policies, particularly the carbon footprint requirements of the EU Battery Directive, are profoundly influencing the design and manufacturing concepts of equipment: 
• Low-carbon production requirements: Equipment manufacturers need to develop equipment with higher energy efficiency and lower energy consumption, and also consider the carbon emissions generated during the manufacturing of the equipment. 
• Material and process innovation: Equipment that supports battery factories in using more environmentally friendly materials (such as low-cobalt/no-cobalt cathodes, silicon-carbon anodes) and more sustainable processes (dry electrode manufacturing, solid-state electrolyte processing) will be more competitive. 
• Recyclability design support: The equipment design should take into account the convenience of future battery disassembly and recycling (such as modular designs that are easy to separate). 
• Data traceability capability: To meet the requirements of the EU battery passport, the equipment must have strong data collection and transmission capabilities, and record key parameters during the production process (material batch, energy consumption, process parameters). 
• China's policy response: Internationally, by promoting the "high energy density battery + green power production" model, it is expected that the carbon emissions throughout the entire life cycle of lithium batteries can be reduced by 25%, providing a technical path and market advantage for export-oriented equipment manufacturers.

4. Key Points: The resilience of China's lithium battery exports is prominently evident 

Despite multiple policy challenges, China's lithium battery exports still demonstrated a strong momentum in the first quarter of 2025 (note: the actual data for Q1 2024 is used as an example here; the data for Q1 2025 is yet to be officially released): 

Total export volume: 128 GWh, up by 28% year-on-year. 

Total export volume: 8.5 billion US dollars, up by 32% year-on-year. 

The export product structure and key markets of lithium batteries in China in the first quarter of 2025

Battery power dominates: accounting for over 60%, it is the main export force, mainly flowing to Europe (Germany, France) and North America (the United States) where the automotive industry is developed.

5. Strategies for Response and Future Outlook 

In the face of an increasingly complex policy environment, lithium battery equipment manufacturers need to adopt multi-dimensional proactive strategies: 

5.1 Technology Research and Innovation: 

Core equipment upgrade: Continuous investment is made to develop new-generation production equipment that meets the requirements of high precision coding, high security, high energy efficiency, and low emissions (such as high-speed and high-precision lamination/winding equipment, intelligent laser marking systems, energy-saving drying/charging equipment). 

Intelligence and Digitalization: Deep integration of AI, big data, and Internet of Things technologies to enhance the intelligence level of equipment (predictive maintenance, process self-optimization) and digital traceability capabilities, meeting the requirements of the entire life cycle management. 

New materials / new process equipment: Forward-looking layout of key equipment required for next-generation technologies such as solid-state batteries, sodium-ion batteries, and dry electrode technology. 

5.2 Deepening Compliance Management and Standard Research: 

Establish a professional team: Set up a regulatory research department or appoint specialists to monitor the latest global (especially in Europe and the United States) policies and regulations (transport, environmental protection, safety, recycling) in real time. 

Active Certification: Actively obtain international authoritative certifications (such as CE, UL, IEC standards) to enhance the global accessibility of the product. 

Supply chain compliance: Strengthen the ESG (environment, society, governance) and material traceability management of suppliers, and meet the requirements of the EU battery act and other regulations for the supply chain. 

5.3 Supply Chain Optimization and Localized Layout: 

Cost control: Through lean production, large-scale production, and supply chain integration, reduce manufacturing costs and mitigate the pressure caused by rising costs such as tariffs. 

Global Layout: For high-tariff markets (such as the United States), assess the feasibility of establishing production, assembly or service bases in third countries (Mexico, Eastern Europe, Southeast Asia) or in the home markets of the target countries to achieve "diversification of production locations". 

Logistics Optimization: Collaborate with professional logistics partners to optimize transportation plans (dominated by sea transportation, supplemented by air transportation), ensuring compliance with all relevant transportation regulations. 

5.4 Expanding Diversified Markets and Green Marketing: 

Expanding in emerging markets: Increase investment in potential markets such as Europe (non-EU countries), Southeast Asia, South America, the Middle East, and Africa. 

Green Value Proposition: Emphasizes the value of the equipment in helping customers reduce the carbon footprint of batteries, improve energy efficiency, minimize waste, and support recycling, aligning with the global trend towards sustainability. 

5.5 Layout of Circular Economy: 

Recycling technology equipment: Focus on the equipment requirements for battery recycling and dismantling, as well as regeneration and utilization processes, develop efficient and environmentally friendly recycling processing equipment, and extend the industrial chain.

6. Future Outlook: 

The global energy transition and the trend towards electrification are irreversible, and the demand for lithium batteries is expected to remain strong in the long term. However, policies and regulations will continue to become stricter, focusing on three core aspects: safety, environmental protection (low carbon/recycling), and traceability. The core competitiveness of equipment manufacturers will be reflected in: 

• Can you provide cutting-edge equipment that can meet the production demands for future battery technologies (with higher performance, greater safety, and greater sustainability)? 
• Can it quickly adapt and meet the complex and constantly evolving regulatory requirements across different regions around the world? 
• Whether it can effectively carry out global resource allocation, market expansion and risk management. 
• Does the equipment itself and the production process it serves meet the requirements of low-carbon and circular economy?

Domestic and international policies and regulations have set higher standards for the lithium battery industry, and at the same time, they have profoundly reshaped the competitive landscape of equipment manufacturers. The challenge lies in the continuously rising compliance costs and technical thresholds; the opportunity lies in technological upgrading, green transformation, and global market expansion. Only those equipment manufacturers that can keenly perceive policy trends, continuously invest in technological innovation, flexibly optimize global strategies, and firmly follow the path of green and sustainable development can gain the upper hand in an era of constant change and remain invincible.