Beijing – China – China has suspended construction work on new renewable energy storage battery production projects, pending the completion of a comprehensive review of sector capacity scheduled for completion by the end of this year.
Media outlet Caixin cited informed sources stating that Chinese authorities initiated a nationwide survey of battery production capacity and utilization rates at the end of 2025, deciding to halt construction on new projects since mid-May.
Comprehensive Capacity Review
The review aims to assess existing production capacity and plant operating rates amidst significant expansion in China’s battery sector over recent years.
The move aligns with Chinese authorities’ efforts to regulate new investment in the sector and ensure capacity expansion matches actual demand for energy storage batteries.
Exemption for High-Utilization Companies
According to Bloomberg, authorities will allow companies achieving high capacity utilization rates to resume new construction projects by the end of this year.
This indicates a strategy prioritizing the most efficient operators while curbing unchecked expansion of new production capacity.
Major Expansion and Overcapacity Challenges
China faces substantial expansion in energy storage battery manufacturing plans, with data showing planned additional production capacity this year equals roughly 1.5 times China’s total battery output in 2025.
The capacity review comes as China continues investing heavily in energy storage technologies and renewable energy, with authorities seeking to balance supporting the industry against mitigating overcapacity risks.
