China’s Toughest EV Safety Standards Take Effect, Reshaping Industry

Two of China’s most stringent mandatory national safety standards for electric vehicles officially took effect on July 1, fundamentally reshaping the development logic of the country’s new energy vehicle (NEV) industry. The regulations — GB 18384-2025 (Electric Vehicles Safety Requirements) and GB 38031-2025 (Electric Vehicles Traction Battery Safety Requirements) — introduce what industry observers describe as the world’s strictest battery safety rules, mandating a shift from after-the-fact warning to upfront prevention.

A New Safety Philosophy

The most transformative change lies in the battery safety standard. Under the previous regulation (GB 38031-2015), batteries were required to provide a thermal event alarm signal at least five minutes before catching fire or exploding. The new standard elevates this requirement to “no fire, no explosion” after thermal runaway, with smoke not causing harm to occupants. As CnEVPost reported, the observation period extends to at least two hours after thermal runaway initiation.

“This is a shift from after-the-fact handling to upfront prevention,” Liu Kai, executive secretary general of the NEV battery branch of the China Association of Automobile Manufacturers, told China Automotive News.

Physical One-Touch Power-Off

At the vehicle level, the new standards mandate a physical “one-touch power-off” device for the first time. Previously, high-voltage cut-off relied on software signals from the onboard controller — a system that could fail in severe collisions damaging the main control system. The new requirement, as detailed by IT之家, ensures the entire high-voltage circuit between the vehicle and battery can be physically disconnected within one second via a single tap or long press, operating independently of the onboard main control software.

Additional vehicle-level requirements include “brake priority” — when brake and accelerator signals occur simultaneously, the brake signal takes precedence — and electronic locking on charging interfaces that automatically cuts power if unplugged mid-charge.

New Real-World Testing Regimes

The standards introduce two critical new tests reflecting real-world accident scenarios. The bottom impact test subjects the battery to three strikes from a 10 kg impact head at 150 joules of energy, with the battery required not to leak, rupture, catch fire, or explode. The fast-charging cycle safety test requires batteries to undergo 300 fast-charge cycles followed by an external short-circuit test, again with no fire or explosion permitted.

According to People’s Daily, the new standards include 7 single-cell tests and 17 battery pack or system tests, covering high-temperature, collision, short-circuit, external fire, overcharging, and over-discharging scenarios.

Cost Implications and Industry Consolidation

The compliance costs are substantial. Zhong Shihu, deputy director of the Modern Industry Development Research Center at Shanghai National Accounting Institute, estimated that meeting the new standards will increase battery system costs by 15% to 20%, translating to approximately 3,000 to 5,000 yuan ($440-$735) per battery pack per vehicle.

A Ministry of Industry and Information Technology survey found that about 8% of companies could not meet the requirements by the July 1 deadline, while an estimated 40% of small and medium-sized cell manufacturers may exit the market due to insufficient technical reserves and high retrofitting costs exceeding 500 million yuan per production line.

“The two new regulations will drive technological iteration and upgrading in the industry, accelerate the elimination of outdated capacity, and significantly raise industry entry thresholds,” said Cui Dongshu, secretary general of the China Passenger Car Association, as reported by Securities Daily.

Winners and Losers

Leading battery makers are well-positioned. CATL mass-produced its first generation of no-thermal-propagation battery technology in 2020, meeting the new requirements six years ahead of schedule. Eve Energy’s ternary and lithium iron phosphate (LFP) battery systems achieved “no fire, no explosion” by 2022. BYD’s blade battery and flash-charging blade battery passed all tests for the new standard in May 2025.

Lithium iron phosphate (LFP) batteries, with higher intrinsic thermal stability, face smaller cost increases under the new rules, potentially consolidating their market share further. This could intensify divergence between different chemistry routes.

Transition Timeline

Newly type-approved vehicles must fully comply from July 1, 2026. Existing type-approved vehicles in production have a one-year transition for vehicle safety (until July 1, 2027) and 13 months for battery safety (until August 2027). Already-purchased vehicles face no retroactive requirements and can continue operating if they pass annual inspections.

A Global Benchmark?

As the world’s largest EV market — with NEV retail penetration reaching approximately 63.6% in June 2026 — China’s regulatory moves carry global significance. The standards are expected to influence international safety norms, particularly as global automakers producing for the Chinese market must comply.

Zhang Xiang, visiting professor at Huanghe Science and Technology College, noted that the industry had previously prioritized energy density and range over thermal stability and impact resistance. “Under the hard requirements of the new national standards, no matter what technical route is adopted, all must pass the full set of extreme safety tests,” he told Securities Daily.

Looking Ahead

The standards mark a watershed moment for China’s NEV industry, redirecting R&D priorities from pure energy density competition to safety-first innovation. Three key evolution directions have emerged: liquid battery iteration shifting to chemical system improvement and multi-level thermal runaway blocking; accelerated solid-state battery industrialization; and mandatory vehicle-battery integrated design.

As the industry transitions from “scale leadership” to “safety leadership,” the new regulations are expected to strengthen long-term competitiveness, enhance consumer confidence, and potentially set a global benchmark for EV safety standards.