China Pauses Approvals for New Battery Storage Manufacturing Projects.

Move Aims to Address Industry Overcapacity, Intense Competition and Falling Prices.

BEIJING: China has temporarily paused approvals for new battery energy storage manufacturing projects as the rapidly expanding industry faces growing pressure from overcapacity, intense competition and declining prices. Projects that have not yet started construction will remain on hold for now, while those already under construction will not be affected, according to sources cited by Cailianshe. The policy could be revised later depending on market conditions. China’s energy storage sector has expanded alongside the country’s rapid renewable energy growth, attracting major investments from battery and solar manufacturers. However, shrinking profit margins in the solar industry and excess production capacity have encouraged leading solar companies to diversify into battery storage, increasing competition in the sector. The latest move is part of broader efforts by Chinese authorities to rationalise industrial capacity and stabilise markets. China has also introduced measures such as a consumption tax on lithium-ion batteries and solar cells. The pause signals growing regulatory attention toward sustainable growth and balanced capacity in the energy storage manufacturing sector.