Chinese authorities will temporarily suspend construction of new domestic power
and energy-storage battery projects pending a year-end capacity-utilization
assessment. Relevant departments will start a nationwide capacity and
utilization audit at end-2025. From mid-May 2026, new-build power and storage
battery projects are paused; lithium-ion projects that secured required
environmental and energy approvals before mid-May 2026 are exempt. By end-2026,
firms with higher capacity utilization will be eligible for approval to proceed
with the next phase of battery construction.