China's Battery Boom Goes Bust as Oversupply Threatens Industry

China's lithium battery industry faces overcapacity as production outpaces domestic demand and global exports.

Massive investments and subsidies from the government led to a surge in new battery plants and excess supply.

Oversupply estimated to be 2-4 times higher than China's domestic electric vehicle demand by 2025-2027.

Smaller battery manufacturers most threatened by price declines and low utilization rates.

Flawed policies resulted in wasted resources and potential closures of small firms in the EV supply chain.