China Reminds Battery Makers to Resist Excessive Capacity Growth

Article content(Bloomberg) — China summoned the country’s leading battery makers for a second time in a little over three months, reinforcing a call to restrict capacity expansion and avoid the price wars that have damaged other renewable-energy industries in the past.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentSeveral government agencies, including the Ministry of Industry and Information Technology, called on 16 manufacturers of electric-vehicle and stationary batteries to step up efforts to improve product quality and safeguard intellectual property, as well as controlling growth.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe companies should “thoroughly understand the significance and urgency” of resisting unreasonable and improper competitive behavior, the ministry said in a statement after the meeting on Thursday. Promotional activities by local governments to attract investment in the sector should also be regulated, it said.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentBattery makers’ shares surged on Friday, with Gotion High-tech Co. and Shenzhen Xinyuren Technology Co. jumping by their respective daily limits. Companies including Shenzhen Desay Battery Technology Co. advanced in the high single-digits in percentage terms.Article contentThe latest gathering appeared to take a stricter tone than a similar meeting in January and comes at a critical time for China’s battery industry. Producers – particularly those involved in energy storage – have largely delivered a strong performance over the past year as the global energy transition drives demand at home and abroad.Article contentMore recently, fossil-fuel supply disruptions from the war in the Middle East have made energy security a more urgent issue for import-dependent nations. War-related demand is already supporting profits at some Chinese battery makers, while others have announced capacity expansions to capitalize on surging demand.Article contentHowever, the pattern has raised concerns in Beijing due in part to its parallels with the solar industry’s post-2021 cycle, when surging demand triggered a wave of investment that ultimately led to oversupply and collapsing prices, according to consultancy Trivium China.Article contentIntense competition is already weighing on the performance of some companies, with Sungrow Power Supply Co., one of the world’s top energy-storage system providers, attributing lower-than-expected profit for 2025 to the pressures that such challenges have put on its margins.Article contentTrending BYD to open 20 car dealerships in Canada this year Autos Why are Canadian bond yields surging? Finance Posthaste: How the U.S. dollar stole the Canadian dollar's petrocurrency thunder News 'Time to shift that narrative' — RBC to launch $1-billion fund to help Canadian businesses grow Banking How the global energy crisis is shaking Canada from coast to coast — and could leave a lasting legacy Oil & Gas Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. BYD to open 20 car dealerships in Canada this year Autos Why are Canadian bond yields surging? Finance Posthaste: How the U.S. dollar stole the Canadian dollar's petrocurrency thunder News 'Time to shift that narrative' — RBC to launch $1-billion fund to help Canadian businesses grow Banking How the global energy crisis is shaking Canada from coast to coast — and could leave a lasting legacy Oil & Gas