Technology
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China pauses new battery storage factory approvals
The Economic Times··7 Sept
China has temporarily suspended approvals for new energy storage battery factories, Cailianshe reported on Saturday citing industry sources. Authorities are reviewing existing and planned capacity, with a focus on battery cells. Projects that have not broken ground will wait, while those already under construction are unaffected. China also levied a consumption tax on lithium-ion batteries and solar cells.
Prism
What It Means For You
- New battery storage plants that have not broken ground cannot move ahead for now.
- Factories already under construction can continue under the reported pause.
- Cailianshe sources said the policy could be adjusted later.
What's Happening
- China is the world's largest manufacturer of batteries for energy storage.
- The review centres on overcapacity risks even as grid-balancing demand rises.
- Leading solar makers have expanded into battery energy storage as panel profits shrink.
Pressure On The Sector
- Storage makers face intense competition and falling prices, the report said.
- Similar overcapacity pressure has hit solar panels and electric vehicle manufacturing.
- A consumption tax on lithium-ion batteries and solar cells is already in place.
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