China is set to implement two mandatory national safety standards for electric vehicles (EVs) on July 1, introducing the world’s first “no fire, no explosion” requirement for traction batteries. The Electric Vehicles Traction Battery Safety Requirements (GB 38031-2025) and the Electric Vehicles Safety Requirements (GB 18384-2025) represent a comprehensive overhaul of safety governance, covering both battery systems and overall vehicle safety.
Under the new traction battery standard, thermal runaway in a single cell must not lead to fire or explosion. This shifts the industry focus from managing incidents after they occur to preventing them at the source. To better emulate real-world conditions, the standard adds two mandatory tests: bottom impact, simulating underbody strikes, and long-term fast-charging cycling, reflecting high-frequency ultra-fast charging scenarios.
The vehicle-level standard mandates an independent physical “one-touch power cut” device capable of disconnecting the entire high-voltage circuit within one second, regardless of software functionality. Previously, power cutoff relied on software signals, which could fail if the main control system were compromised in a collision.
Early adopters among leading battery manufacturers report minimal impact on their product lines. One company noted it began mass-producing no-thermal-propagation battery cells in 2020, while another achieved “no fire, no explosion” performance in both ternary and lithium iron phosphate (LFP) systems by 2022. However, meeting the new requirements is estimated to raise battery system costs by 15 percent to 20 percent—an additional 3,000 to 5,000 yuan per battery pack. This cost pressure is expected to disproportionately affect smaller suppliers and low-end vehicle models, widening the gap with industry leaders.
Thanks to its intrinsic thermal stability, LFP chemistry faces a smaller cost increase and could see further market share consolidation. The new standards arrive as China’s battery industry transitions from rapid expansion to structural upgrades. Domestic traction battery installations are projected to reach 888.7 GWh in 2026, a 15.8 percent increase compared with 2025’s 40.4 percent growth. Commercial EVs are expected to drive this trend, with installation demand rising 34.7 percent versus a 10.8 percent increase for passenger vehicles.
Source: CNEV Post
