China has introduced a new national standard aimed at improving the accuracy of electric‑vehicle battery health reporting, a move that could reshape the used‑car market and warranty practices.
Details of the State of Certified Energy requirement
The standard, announced by the Ministry of Industry and Information Technology (MIIT) and the Standardisation Administration of China (SAC), defines a metric called the State of Certified Energy (SOCE). Unlike the more familiar State of Charge (SOC), which shows the battery’s current charge, SOCE must reflect the long‑term health of the high‑voltage pack within five percent of its actual remaining capacity.
Manufacturers are also required to translate non‑driving battery energy use—such as power for climate control or infotainment—into a “virtual mileage” figure. That number must be accurate to within three percent of the real energy consumed.
To qualify, batteries need to retain at least 82 percent health after either 100,000 km of driving or five years in service.
While the measure is not a law, it functions as an industry guideline. Officials say it should help owners and dealers assess battery wear when filing warranty claims or negotiating resale prices.
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Implications for ultra‑fast charging and the broader market
One of the motivations behind the policy is to allay concerns that new ultra‑fast charging technologies could accelerate battery degradation. BYD’s Denza brand, for example, plans to launch a Flash Charging system in Australia that can add roughly 800 km of range to the upcoming Denza Z9 GT in about nine minutes. The vehicle will use the company’s “Blade 2” battery, capable of handling up to 1,500 kW direct‑current charging.
The firm says the high‑power chargers will be installed at Denza dealerships before the technology rolls out to other models. If the SOCE standard proves reliable, it could give buyers confidence that such rapid charging won’t unduly shorten battery life.
Consumers will benefit from clearer data.
China has been active in setting EV battery standards over the past year and a half. A safety rule that bans batteries prone to fire or explosion took effect on July 1, 2026. Those safety measures, combined with the new health‑tracking requirement, may influence global manufacturers that source batteries from Chinese factories.
In Australia, Chinese‑made vehicles accounted for 39.6 percent of new car sales in June 2026, up from 23.5 percent the previous year. The Tesla Model Y, built in China, topped monthly sales in May and June, marking the first time a Chinese‑produced vehicle led the market.
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Australia already enforces mandatory EV battery safety regulations, but it lacks a specific health‑tracking standard for high‑voltage packs. The Chinese benchmark could serve as a reference point for local policymakers seeking to protect consumers.
From a broader perspective, establishing a clear, measurable way to gauge battery health may encourage more transparent pricing in the secondary market. When prospective buyers can see a consistent, verified metric, they are less likely to discount a used EV solely because of uncertain battery condition. This could, in turn, support the overall adoption of electric cars by reducing perceived risk.
Critics note that the standard’s voluntary nature might limit its effectiveness unless major manufacturers adopt it across all models. Without enforcement, some brands could still present optimistic figures, especially if the displayed SOCE data is sourced from proprietary software.
Nevertheless, the collaboration between MIIT and SAC signals a coordinated effort to address lingering doubts about long‑term EV ownership. By tying battery health to concrete mileage and age thresholds, the guideline attempts to bring a level of predictability that has been missing from many warranty contracts.
As the industry watches, the next step will be monitoring how quickly automakers integrate the SOCE metric into vehicle dashboards and connected apps. If the approach gains traction, it could set a de facto global benchmark for battery health reporting, influencing everything from resale values to financing terms.
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