China Issues Draft Guidelines to Rein in Lithium Battery Industry

China’s Sunwoda Electronic in March 2025 is expanding its footprint in Southeast Asia’s electric vehicle EV industry with a $1 billion investment in Thailand.
A rechargeable Lithium-ion battery. China’s Sunwoda Electronic in March 2025 is expanding its footprint in Southeast Asia’s electric vehicle EV industry with a $1 billion investment in Thailand. (Photo: Ronny Hartmann / AFP)

China has released draft guidelines aimed at reining in the country’s lithium battery industry, which has been in Western crosshairs over fears subsidized overproduction could flood global markets with cut-price exports.

Lithium-ion batteries are a form of rechargeable energy storage used in everything from electric cars to scooters, laptops, and motorized wheelchairs.

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