Summary of Key Points
Effective July 1, 2026, two new mandatory national standards will be implemented for domestic new energy vehicles. These standards raise the battery safety requirements from a minimum of 5 minutes of escape time after a fire to absolute prevention of fires and explosions under extreme conditions. They also include additional tests targeting common usage risks such as bottom impacts and prolonged fast charging, as well as the mandatory installation of a physical one-button power-off feature. The introduction of these new standards is necessitated by the safety shortcuts some companies have taken due to price competition. These changes will accelerate the industry's consolidation: leading companies with advanced technology will easily meet the requirements, while smaller manufacturers may face bankruptcy due to increased costs, ultimately shifting the competitive landscape from a focus on low prices to a emphasis on safety and innovation.
I. How Strict Are the New Standards?
The old standards only required a 5-minute warning before a fire to allow passengers to escape, essentially taking a reactive approach to safety issues. The new standards, however, demand that batteries cannot catch fire or explode under any extreme circumstances, including internal short circuits, bottom impacts, and prolonged fast charging, and that the resulting smoke must not be harmful to people. Specific additional tests include:
- Bottom Impact Test: The battery is subjected to three consecutive impacts from a 30mm hemisphere head, simulating conditions such as hitting speed bumps or rough roads. After the test, there should be no liquid leakage or fire, and the insulation must remain intact. Many low-cost vehicles previously reduced the thickness of the battery bottom protective steel plate from 1.5mm to 0.8mm or eliminated the buffer altogether; these substandard practices will no longer be acceptable.
- 300-Cycle Fast Charging Short Circuit Test: Batteries designed for 15-minute fast charging must not explode even after 300 cycles of rapid charging. Some companies used to compromise battery longevity for faster charging speeds, but this approach is no longer viable.
- Physical One-Button Power-Off: A hardware-based button replaces the software-controlled power-off mechanism, ensuring that rescue personnel are not at risk of electric shock in case of an accident.
II. Why the Sudden Stringent Measures?
The popularity of new energy vehicles has surged (with a penetration rate approaching 60% in April 2026), but fierce price competition has led to safety shortcuts by many manufacturers:
- Reduced Battery Quality: Vehicles priced below 100,000 yuan have thinner protective steel plates at the battery bottom or no buffer at all, making them more prone to deformation and internal damage during minor impacts, which can increase the risk of fires.
- Relying on Software for Safety: Some smaller manufacturers do not invest in custom battery designs and simply use off-the-shelf cells with third-party BMS (Battery Management Systems) software, assuming that algorithms can prevent thermal runaway. However, this approach is often unreliable in real-world scenarios.
- Dramatic Case Example: In 2024, a fire at a lithium-ion battery warehouse in Huizhou resulted from the failure of a thermal monitoring system in 500,000 cells, leading to a chain reaction and causing two deaths and losses of 9 million yuan. Such cost-cutting measures must be addressed.
III. Differentiation Among Companies
The new standards have a significant impact on different companies:
- Leading Companies (e.g., CATL, BYD): These firms already possess the necessary technical capabilities and can easily meet the new standards, using them as a competitive advantage to strengthen their market position.
- Smaller Manufacturers: They face substantial cost increases (up to 15%-20% for batteries) and require 6-12 months to retest and recertify their products. With tight cash flows, some may go out of business.
The battery market is already seeing a consolidation: second-tier manufacturers like Guoxuan and EVE Energy gained more orders in the first half of 2025 due to their fast-charging technologies. However, without the necessary expertise, these smaller players will likely be eliminated, leaving the market dominated by leading companies.
IV. For Consumers
The new standards bring significant relief:
- Addressed High-Risk Situations: Common issues such as damage from speed bumps, exposure to summer heat, and fires after prolonged fast charging are now covered, reducing the risk of minor incidents leading to serious accidents.
- Elevated Safety Standards: All vehicles on the market must meet the new standards by July 2027, providing better safety for over 30 million new energy vehicle owners.
In simple terms, the battery safety of new energy vehicles will become a fundamental requirement, not an optional feature. Consumers can buy electric cars with peace of mind, knowing that they are less likely to catch fire unexpectedly.
V. Industry Upgrading
The new standards are a catalyst for technological progress:
- Technological Innovation: Manufacturers will develop advanced materials (e.g., aerogels) and targeted fire suppression systems (such as the use of perfluorohexanone for fire suppression) to improve battery safety.
- Shift in Competition: The focus shifts from low-price competition to innovation and quality, marking a transition from scale expansion to sustainable, market-driven development.
In summary, the new national standards mark a milestone for the new energy vehicle industry, signaling the end of reckless growth and the beginning of an era where quality and technology determine success. The long-term benefits will be evident for both consumers and the entire industry.