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China has temporarily halted approvals for new battery storage factories that have not yet begun construction, according to a report by Chinese financial news outlet Cailianshe, which cited industry sources. The move comes amid rising concerns about overcapacity in the sector, as China is the world’s largest manufacturer of batteries for energy storage.
The country, also the largest market for electric vehicles and a leading player in battery storage, has seen these energy-transition industries grow for years with generous subsidies, leading to overcapacity. The government has already taken measures to curb excess in electric vehicles and solar panels, and now batteries are facing similar scrutiny.
Chinese solar equipment manufacturers have also diversified into battery storage to cope with a chronic oversupply in the panel and equipment market, which has hurt many companies’ profitability. The surge in electric vehicles and renewable energy installations has led to excessive manufacturing capacity, sparking price wars that have damaged most sector players, including major solar panel producers. Authorities recognized last year that intense competition, overcapacity, and low-quality manufacturing were harming enterprises.
To address the battery storage boom, China’s authorities have started implementing measures. In July, the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration announced consumption taxes on batteries, effective September 1, 2026. Mercury-free primary batteries, nickel-metal hydride batteries, lithium primary batteries, lithium-ion batteries, and all-vanadium redox flow batteries will be taxed at 2% from September 2026 and at 4% from September 2027. Photovoltaic cells will face a 2% tax from April 2027 and 4% from April 2028. New-technology batteries, including sodium-ion, solid-state, fuel cells, and advanced photovoltaic types like perovskite, tandem, and gallium arsenide cells, are exempt from the tax until December 2028.
Interactive table based on the Store Companies dataset for this report.
Report Scope and Analytical Framing
Concise View of Market Direction
Market Size, Growth and Scenario Framing
Commercial and Technical Scope
How the Market Splits Into Decision-Relevant Buckets
Where Demand Comes From and How It Behaves
Supply Footprint and Value Capture
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Price Formation and Revenue Logic
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Leading Players and Strategic Archetypes
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World's largest battery maker
Vertically integrated EV maker
Volkswagen strategic partner
Key supplier to global brands
Leading cylindrical cell maker
Major aviation & EV supplier
Spin-off from Great Wall Motor
Supplier to global automakers
State-owned pioneer
Leading material & battery maker
Leading in 3C & power tools
Comprehensive battery supplier
Part of EVE Energy group
Leading ESS battery specialist
Growing ESS & consumer brand
Solar company expanding to ESS
Part of state-owned Shanghai Electric
Same as Gotion High-tech
Long-established battery maker
US-listed, China HQ, fast-charge focus
Lithium battery subsidiary of Topband
Diversified into lithium ESS
Leading backup power supplier
Consumer leader, owned by TDK (Japan)
Traditional leader diversifying
Batteries for IoT, portable devices
Part of Zhongtian Technology Group
Battery pack & BMS specialist
Electronic component maker with battery packs
Part of ZTE for telecom & ESS
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