The National Development and Reform Commission launched a plan earlier this year to step up the building of a traceability management system for NEV batteries and also highlighted the role of echelon utilization of power batteries.

The echelon utilization of power batteries is to utilize remaining capacity of power batteries accordingly in other areas－a move to further tap the residual value of the batteries, and protect the environment.

Liu Wenping, an analyst with China Merchants Securities, said that echelon utilization of batteries is an effective way for companies to manage old batteries.

"As most of the power batteries in China are lithium-iron ones and do not contain high-value metals like cobalt and nickel, echelon utilization is a feasible solution," Liu said.

"China's electric vehicle industry has entered a new stage of rapid growth with the battery industry initially taking shape. It is strategically important for the country to have stable battery resources and a sound battery recycle system," said Wang Binggang, honorary consultant of the China Society of Automotive Engineering and an academician of the International Eurasian Academy of Sciences.

"Such a move also has significance, as the country is committed to peaking its carbon emissions by 2030 and attaining carbon neutrality by 2060."