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China’s Ministry of Industry and Information Technology has warned battery manufacturers about the dangers of overcapacity, which could cause destructive competition and price declines, similar to what happened in the solar energy sector. The statement was issued following a meeting with leading companies in the industry.
Source Reuters
The ministry urged the optimization of production capacities, strengthened regulation, and market competition control in the electric vehicle battery and energy storage segments. It noted that “blind” expansion of capacities has already created problems affecting prices and the profitability of manufacturers.
Experts believe that without proper regulation, the overcapacity issue may worsen, threatening the sustainable growth of China’s battery industry.
