How China’s Battery Technology Export Controls Impact Residential Off-Grid Solar (Copy)
On November 8, 2025, China imposed export controls on lithium battery technology, targeting high-energy lithium-ion batteries (with a capacity of >300 Wh/kg), critical materials, and advanced production equipment, sending shockwaves through the battery supply chain.
What do these controls mean for residential off-grid solar system owners, where battery storage is a non-negotiable component?
Long story short, battery manufacturers may cut corners because of supply disruptions, licensing burdens, or material inflation. For example, they may use lower-cost cells, reduce cell counts, increase depth-of-discharge (DoD) aggressively (thus reducing lifespan), and/or raise their prices.
Let’s explore the implications of these new export controls and how you can protect your investment when choosing a solution.
Recent Chinese battery technology export controls: An overview
China’s Ministry of Commerce (MOFCOM) and the General Administration of Customs have added advanced lithium-ion battery cells/packs and associated manufacturing technology to their export control list.
While these controls don’t necessarily mean outright bans, they impose significant licensing, documentation, and end-use restrictions — causing extended lead-time, increased costs, and uncertainty risks in the supply chain.
With China producing around 90% of anodes and lithium electrolyte solutions, most battery packs use components from Chinese manufacturers. When the supply of high-performance battery cells is strained, the demand for cells of lower energy density increases.
Even if residential battery solutions don’t always require the highest-performing cells, the increased demand for cells of lower energy density will likely drive up costs and make sourcing more challenging.
What China’s battery export controls mean for home-battery buyers
So, how do these upstream policies and supply chain shifts show up in the solar batteries you buy? Here are some key risks to watch out for:
Lower quality cells, compromised performance
China’s export controls will reduce the availability of premium cells or delay their delivery, pushing some battery pack manufacturers to use lower-cost and/or lower-performance cells. The resulting battery packs may seem the same watt-hour for watt-hour, but the underlying quality (e.g., cycle life, thermal management, safety margin) may be weaker.
Fewer cells, more aggressive discharge profile
Some battery builders may use fewer cells in a pack to reduce cost. To meet the same spec with fewer cells, they set a more aggressive DoD or faster charge/discharge rate to achieve the same advertised capacity, reducing the pack’s longevity and increasing your total cost of ownership in the long run.
Supply delays and price increases
Battery building requires specialized expertise, and most solar companies don’t have the competence to influence the process. Most take whatever manufacturers have on offer — “you get what you get; you don’t get upset.” When there are delays in the supply chain or price increases along the line, all they can do is ask you to sit tight, pay more, and shrug.
Higher total cost of ownership and diminished ROI
Unlike lead-acid batteries, which are treated as consumables, lithium batteries’ longer lifespan means they should be handled as assets. However, if a pack is built with fewer or lower-quality cells, the risk of it under-delivering over time (e.g., less usable capacity, earlier degradation) will increase, raising the long-term cost of owning the system.
How to select the right vendor for your battery solution
What can you do to navigate this new supply chain environment? Unfortunately, many commercial battery packs are black boxes that don’t tell you much beyond their “out of the box” performance and capacity. Additionally, they don’t have monitoring capabilities to show you how the pack performs over time.
Manufacturers can easily reduce the number of cells and set a very aggressive DoD to meet the specs without considering long-term implications (i.e., the pack may die after three years, instead of the five or seven years as advertised).
Some manufacturers may even skimp on safety features; For example, lithium iron phosphate (LFP) cells die if they receive a charge below 35 degrees Fahrenheit. However, some builders cut costs by not implementing protective circuitry. The pack is toast if it’s charged in freezing temperatures.
Ask your vendor about these specifics (but not everyone can answer these questions!) Also, be wary of low-priced offers. If a pack is much cheaper than its competitors, ask how the vendor is saving costs. You may end up with a higher long-term cost if you need to replace your battery packs sooner than expected.
Additionally, inquire about lead-time and sourcing transparency. Will supply chain risks, such as export controls, material inflation, and cell shortages, hold up your project? Will they result in an unpleasant surprise in your final bill? Does the vendor have any mitigation strategies?
Justplug custom-built battery solutions enhance supply chain transparency and sourcing flexibility
We’re not immune to these supply chain pressures. However, our technology gives us added control over the production process, enhancing transparency and adaptability while minimizing vendor lock-in as we navigate the rapidly shifting market.
Custom-built for your site and use case
Instead of using a one-size-fits-all commercial pack, we custom-build battery solutions to match each client’s expected usage, operating environment, and growth plan. This approach allows us to personalize chemistry, cell count, cooling/thermal design, and usage profile (e.g., DoD) while ensuring each system stands the test of time.
Quality sourcing and vendor flexibility
We review all the specs when sourcing cells for our battery solutions to maintain complete control over the final product. Additionally, our proprietary software technology and production process give us the flexibility to use cells from various suppliers. If one cell format becomes unavailable or expensive, we pivot to an equivalent alternative with minimal adjustments.
Built-in margin for longevity (not just headline capacity)
We prioritize quality over quantity. We don’t skimp on redundancy, a conservative DoD, multiple thermal sensors, and a robust battery management system (BMS). Instead of pushing the maximum theoretical capacity, we pamper our batteries to ensure long-term performance and longevity, building for a 10-year horizon (with LFP chemistry).
Modularity and flexibility
Traditional battery technology can’t mix cells of different ages and chemistries, locking users into a single vendor and cell type without the flexibility to adapt to cost increases or supply chain hiccups. On the other hand, our proprietary software enables us to mix cells of different ages and chemistries, allowing us to select the cell types most cost-effective for your needs.
Sourcing and cost transparency
We openly communicate sourcing risks, lead times, and cost assumptions with our clients. We don’t promise “cheapest possible” packs that force compromises. Instead, we aim for best value over the long term by working closely with our supplier, knowing exactly what goes into each pack, and monitoring the cells’ behaviors with an advanced battery management system (BMS).
Take control to protect your investment
The supply chain will remain unpredictable for the foreseeable future. Constraints will lead to fewer, more expensive, and/or lower-quality cell options. As a result, most battery manufacturers will pass some (if not most) of the risks and costs to consumers.
We make no bones about having to increase our prices as well. However, we build our battery packs to last, ensuring the total cost of ownership (TCO) remains favorable to our clients. Moreover, our solutions deliver peace of mind: Your pack is tuned to your requirements to ensure performance and safety for years to come.
Learn more about our custom battery solutions and get in touch to discuss your energy storage requirements.
