China’s top regulators gathered leading battery makers like CATL and BYD to curb excess capacity and price wars. Discover the global impact now.
Beijing’s leading regulatory bodies have summoned a closed‑door summit of the nation’s biggest battery and power‑storage players—including CATL, BYD, Gotion, and system integrators such as Trina Solar Energy—to address a growing risk of excess production capacity.
Who Showed Up?
- Contemporary Amperex Technology (CATL)
- BYD Co.
- China Aviation Lithium Battery (CALB)
- Gotion High‑Tech
- EVE Energy
- Sunwoda
- SVOLT
- Supply‑chain partners: HiNa New Energy, Zhejiang Jiyao Tongxing Energy Technology, Cornex New Energy
- System integrators: CRRC Zhuzhou Institute, HyperStrong New Energy Technology, Trina Solar Energy Storage
Regulators Leading the Charge
The Ministry of Industry and Information Technology (MIIT) co‑hosted the meeting with three other high‑level agencies: the National Development and Reform Commission (NDRC), the State Administration for Market Regulation (SAMR), and the National Energy Administration (NEA). Their joint mandate is to rein in price wars, tighten market supervision, and restore orderly competition in the fast‑growing electric‑vehicle (EV) and energy‑storage sectors.
Key Measures on the Table
- Stricter enforcement of pricing regulations and anti‑dumping rules.
- Enhanced quality‑control inspections across the production chain.
- Early‑warning systems to flag capacity build‑outs that exceed demand forecasts.
- Mandated coordination between central and local governments to block redundant projects.
- Encouragement of industry self‑discipline, with trade groups tasked to guide firms toward realistic capacity planning.
Why It Matters Globally
China now commands roughly 70% of the worldwide energy‑storage battery market. According to Korean market‑research firm SNE Research, six Chinese companies ranked among the top ten worldwide for installed storage capacity in the first eleven months of 2025, capturing 69.4% of global share—a three‑point rise from the same period in 2024.
Unchecked overcapacity threatens to erode profit margins, fuel a race to the bottom on price, and destabilise supply chains that auto manufacturers and renewable‑energy developers rely on. By tightening oversight, Beijing aims to preserve a “quality‑over‑price” market ethos that can sustain long‑term growth and keep Chinese firms competitive on the international stage.
What Comes Next?
Industry watchers expect a series of follow‑up actions, including regular capacity‑reporting requirements and possible penalties for firms that breach the new guidelines. The outcome of this summit will shape investment decisions across the EV and grid‑storage sectors for the rest of the decade.
Stay tuned for updates as Chinese authorities roll out the enforcement framework and as global battery players adjust their strategies in response.