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Key Policy Variables New Energy Vehicle Industry Development Plan 20212035

Energy Storage Electricity Pricing Mechanism: Xinjiang takes the lead in the national layout of the new energy storage industry, with a target of exceeding 20 GW of installed capacity by 2025. Twenty-three provinces including Hubei and Heilongjiang are accelerating the industrialization of energy storage. The compensation mechanism for independent energy storage has emerged as the core driving force, and solar-storage hybrid projects have achieved large-scale implementation. Together, these developments depict a new pattern of large-scale development for Chinaʼs new energy storage industry, shifting from policy-driven growth to a "market-technology" dual-wheel drive model. Export Control List: High-end grades of graphite anode materials(including lithium-ion batteries with an energy density of ≥ 300 Wh/kg, high-end artificial graphite anode materials, lithium-ion battery manufacturing equipment, and other controlled items) have been included in dual-use items export controls, forcing investment in overseas local production capacity.This measure is currently suspended until November 10, 2026.)

On February 9, 2025, the National Development and Reform Commission NDRC) and the National Energy Administration NEA) jointly issued the Circular on Deepening the Market-oriented Reform of New Energy Grid - connected Electricity Prices and Promoting the High - quality Development of New Energy (known as Document No. 136. The document explicitly stipulates that energy storage allocation will no longer serve as a precondition for the approval, grid connection and grid integration of new energy projects, thus bringing an end to the era of "mandatory energy storage allocationˮ.

The price of Chinaʼs power batteries dropped to CNY 0.45 per Wh in Q3 2024, a level that is close to or even below the cash cost line of some enterprises. This has intensified competition in the industry and exposed inefficient production capacity to the risk of being phased out. The Circular on Deepening the Market-oriented Reform of New Energy Grid-connected Electricity Prices and Promoting the High-quality Development of New Energy, issued in February 2025, directly triggered the "May 31 Rush Installation Wave" in mid-2025. The policy effect was fully unleashed in May 2025, with newly installed capacity of new energy storage hitting 10.25 GW/26.03 GWh in a single month, representing a year-on-year surge of over 460%.

Source: 30 cents per watt-hour? Lithium battery enterprises face the ultimate test of cost reduction;From "involution" to "money printing": Behind the end of the energy storage price war, a trillion-dollar power value revaluation 丨 Golden Eye

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