Asia

China Applies More Stringent Industry Standards To Phase Out Low-Quality Capacity In May 2024, Chinaʼs MIIT issued a draft of updated standards for the battery industry. Addressing challenges such as oversupply and inconsistent product quality, it imposes stricter standards on product performance and factory utilization rates. This is targeted at phasing out low-quality capacity and weaker companies rather than restraining supply growth. Although the standards are merely guidance for the industry and not a legal mandate, it is expected that:

Companies not meeting the standards will face more difficulties in obtaining financing and land for domestic capacity expansion

More follow-up measures may be taken by the government if the overcapacity issue remains unresolved. A recent example is the removal of the export tax rebate.

Source: Content & analysis provided courtesy of CRU Group Distinguished Partner). For more information, visit https://www.crugroup.com. Industry

standard also includes requirements on AAM, separators, R&D investments, impurities, and factory utilization.

Extracted from the PDF; charts and images may read imperfectly.