China has temporarily suspended approvals for new battery storage manufacturing projects as of September 7, 2026. The freeze targets factories that have not yet broken ground, while projects already under construction may continue. New energy storage capacity commissioned in the first half of 2026 fell 18% year-on-year. A 2% consumption tax on lithium-ion batteries was reintroduced on September 1, 2026, set to rise to 4% by September 2027. This regulatory intervention follows similar measures in steel, solar panels, and electric vehicles as Beijing seeks to address overcapacity in strategic industries.
Source: Read the original article
