China's government has escalated its intervention in the battery manufacturing sector, summoning leading producers for a second time in three months to discourage excessive capacity growth and prevent destructive price wars. This move mirrors previous government efforts to stabilize other renewable energy industries that suffered from overcapacity and margin compression. The directive signals Beijing's determination to maintain profitability and competitiveness in a sector critical to the global energy transition, where Chinese companies dominate manufacturing. The timing is significant as overseas demand for battery storage surges, particularly due to energy disruptions from geopolitical tensions, presenting both opportunity and risk of unsustainable competition.