China reportedly pauses approvals for new battery storage factories amid overcapacity concerns

China has temporarily suspended approvals for new battery-storage manufacturing projects that have not yet begun construction while authorities review existing and planned capacity, according to Chinese financial media and industry sources. Projects already under construction are reportedly allowed to continue, and the pause is described as targeted and potentially temporary rather than a blanket ban. The move reflects growing concerns about overcapacity, low-quality production and price wars after years of subsidies drove rapid expansion in batteries, electric vehicles and solar equipment. It also follows changes that reduced the requirement for new renewable-energy projects to include storage, potentially weakening demand growth. Authorities have not published a formal national directive, but the reported freeze could mark a shift away from largely unrestricted, subsidy-supported capacity expansion.