China pauses approvals for battery storage manufacturing projects, Cailianshe reports

BEIJING, Sept 7 (Reuters) - ‌China, the ​world's ​largest manufacturer of batteries for energy storage, has temporarily suspended approvals for new factories, ‌Chinese financial news outlet Cailianshe reported on Saturday.

• ⁠The pause comes as authorities conduct a review of existing ‌and planned energy storage ‌production capacity, with a focus on battery cells, the report said, citing industry sources.

• The move comes ​amid growing concerns about overcapacity risks in the energy storage sector, according to the report. That ⁠is despite a surge in demand for batteries used to balance ​grids and provide backup power.

• Projects that have not broken ground will not move forward ​for the moment but those ‌already under construction will not be affected, Cailianshe sources said, adding the policy ⁠could be adjusted later.

• China's energy storage industry has expanded rapidly alongside the country's renewable energy build-out but, as ⁠with other industries like solar panels and electric vehicle manufacturing, manufacturers ​have faced mounting pressure from intense competition and falling prices.

• China's leading solar manufacturers have also expanded aggressively into battery ‌energy storage as shrinking profits and overcapacity in the panel sector push them to ‌seek new growth opportunities.

• China has taken other ⁠steps to rationalise the ‌market including levying ​a consumption tax on lithium-ion batteries and solar cells.

(Reporting by Colleen Howe; Editing by Stephen ‌Coates)

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