In order to reduce the production cost of HRB500E seismic grade rebars, promote its production and application, HRB500E seismic grade rebars are developed by using VN microalloyed and controlled cooling process in domestic steel plant. The mechanism and effect of precipitation strengthening and fine-grain strengthening, the relationship between termination temperature after controlled cooling and mechanical properties of rebars, microstructure, welding and aging properties, high-strain and low-cycle fatigue properties for rebars are researched by using metallographic microscopy, scaning electron microcopy, transmission electron microscopy, X-ray diffraction apparatus, flash-butt welding, materials testing machine and mechanical properties testing. The results show that V(C,N) precipitation amount accounts for 66.67% of the total amount of vanadium by adding VN alloy in liquid steel, effect of microalloy precipitation strengthening is remarkable; when termination temperature after controlled cooling is controlled at 680～710 ℃, the amount of strength surplus for rebars is more than 25 MPa, R m/ R eL ratio is greater than 1.26, uniform elongation ( A gt) is more than or equal to 11.5%, good effect of fine grain strengthening and seismic performance are obtained; rebars have some good features such as low strain aging, good welding performance, high-strain and low-cycle fatigue properties; compared with VN microalloyed and hot-rolled process,the production cost is reduced by RMB 82 Yuan/t, and economic benefit is obvious.