China reportedly set to pause BESS cell capacity approvals

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.