RismadarVoice Reporters
September 7, 2026
China has temporarily halted approvals for new battery energy storage manufacturing projects as authorities review production capacity in the rapidly expanding sector, according to financial news outlet Cailianshe.
The suspension affects new factory projects that have not yet started construction, while facilities already under development will reportedly continue as planned.
Industry sources cited by Cailianshe said the review is focused on existing and planned production capacity, particularly battery cell manufacturing, amid concerns that the sector could face risks from excessive supply.
China is the world’s largest producer of batteries used for energy storage systems, which support power grids and provide backup electricity. The sector has experienced rapid growth alongside the country’s expansion of renewable energy projects.
However, manufacturers have faced increasing pressure from intense competition, falling prices and concerns over overcapacity, similar to challenges experienced in industries such as solar panel production and electric vehicle manufacturing.
The move comes as demand for energy storage batteries continues to rise globally, driven by efforts to integrate renewable energy sources and improve electricity reliability.
Chinese solar manufacturers have also expanded into battery storage production as declining profits in the solar panel market push companies to seek new areas of growth.
Authorities have previously introduced measures aimed at controlling market pressures, including the introduction of a consumption tax on lithium-ion batteries and solar cells.
The latest policy adjustment is expected to be reviewed further as China seeks to balance industrial growth with concerns over excessive production capacity in strategic clean energy sectors.
