In an effort to transform, upgrade, and promote high-quality development in the lithium-ion battery industry, China’s Ministry of Industry and Information Technology has issued new guidelines to regulate the sector’s rapid expansion.
The guidelines, following a proposal in May, aim to address the challenges posed by the industry’s surging growth, including a plunge in product prices and eroding company profits. The ministry said the rules will help firms scale back manufacturing projects that only focus on expanding production capacity, while enhancing technology innovation, product quality, and cost optimization.
Notably, the new regulations will require projects built on farmland and ecological zones to be shut down or strictly reined in and gradually removed. This is in line with the ministry’s emphasis on aligning industry planning and new project launches with national goals for resource development, ecological protection, and energy efficiency.
The rapid expansion of production capacity along the lithium-ion battery supply chain, from raw materials to finished products, has led to a significant drop in prices, putting pressure on companies’ profitability in the world’s largest market for these batteries.
The ministry stressed that the new guidelines, which will take effect on Thursday, are aimed at transforming and upgrading the lithium-ion battery industry to ensure its high-quality development amid the fast-paced growth.