Plans to halt approvals for new Chinese cell capacity for 2026 have been confirmed and expanded to include production of cells for EV applications as well as for battery energy stationary storage (BESS) as part of a review of total battery capacity, expected to be completed by year end. 

Benchmark Mineral Intelligence, specialising in EV and battery supply chain research and insights, reports that 1.83 million electric vehicles (EVs) were sold globally in August 2026, bringing year-to-date (YTD) 2026 EV sales to 13.4 million. In August 2026, EV sales increased by 2% year-on-year (y-o-y).

Copper prices have hit record high after record high in 2026, and are approaching USD 15,000/t as of 10 September. This is despite 2025’s multi-year high surplus and 2026 looking likely to be a broad surplus too.  Part of the reason prices are not reflecting the strong surplus is that huge flows into the US are making the market feel significantly tighter than it is.  In 2025, so much copper went to the US that Benchmark assessed the market as “feeling” 700kt tighter in 2025 than the actual surplus, and Benchmark expects the perceived tightness to be 880kt lower than the actual surplus in 2026. 

China is reported to have temporarily paused approvals for new battery energy stationary storage (BESS) cell production projects. The pause is part of increased measures by China to curb overcapacity and oversupply in the BESS cell market and is likely part of a review of existing and planned projects, but only applies to facilities that are yet to begin construction. This follows on from MOFCOM’s cessation of the lithium ion battery industry’s eleven year tax exemption and the elimination of export tax rebates for battery products. Those tax policies served more to encourage producers to limit output, rather than pause business activities. “If implemented, this new legislation would represent a significant escalation in China’s attempts to control the surge in BESS cell production witnessed across 2025 and 2026,” said Evan Hartley, research manager at Benchmark.