Chinese authorities have initiated a comprehensive assessment of existing and planned production capacities within the energy storage sector. The initiative specifically targets energy storage battery cells, as regulators aim to mitigate risks associated with overcapacity in the industry.
Projects currently in the planning stage that have not yet commenced construction are facing a temporary suspension of approvals. However, projects that have already been filed and are currently under construction remain unaffected by these new regulatory measures.
Tian Qingjun, Senior Vice President of Envision, noted that planned capacity for energy storage cells has exceeded 800 GWh this year. With total capacity expected to reach 1.2–1.5 TWh by year-end and planned capacity surpassing 2 TWh, current expansion rates significantly outpace global market demand.
The government's recent actions follow a series of industry meetings held between November 2025 and July 2026. These sessions, involving the Ministry of Industry and Information Technology and other departments, focused on curbing irrational competition and promoting standardized cost accounting models.