Power Banks: Over 2.3 Million Recalled, Low-Price Rush Ends
By Jessie Wang
7 min read
Since June, a series of power bank safety incidents has affected the whole industry.
On June 26, the Civil Aviation Administration issued an urgent notice prohibiting passengers from carrying power banks on domestic flights if they have no 3C mark, an unclear 3C mark, or have been recalled. The notice followed the product recalls of the spring and early summer and caused considerable losses for many passengers.
The crisis has left consumers with "power bank anxiety" and has also exposed long-standing supply chain risks and gaps in quality control across the industry.
The mobile power supply industry has reached a market size of ten billion dollars (globally in 2023), and China holds more than 30% of it. The Chinese market therefore plays a crucial role on both the consumer side and the production side. In 2025 the power bank industry is being tested in its domestic and overseas markets at the same time.
For brands, we believe this crisis may become an opportunity for the market to reorganise.
I. Frequent Safety Accidents, Over 2.3 Million Products Recalled#
The problems in the mobile power market began to show at the beginning of 2025, and since March there have been frequent incidents of power banks catching fire on flights.
In June, several power bank brands launched recalls of products whose battery cells carried a safety risk, in China and in the United States. Together, the recalls covered more than 2.3 million units, and the products concerned were removed from sale on mainstream e-commerce platforms.
With the recalls and the revocation of 3C certifications, the market has begun to reorganise. In June, some brands used selling points such as "new national standard 3C certification" and "airplane carry-on" to sell higher-priced products, which shows how quickly safety became a reason for consumers to buy.
II. Battery Cells and Price Competition in the Power Bank Market#
The spread of smartphones has given the power bank market plenty of usage scenarios and user demand, and the market has grown quickly over the past decade.
A large number of companies have entered the mobile power supply market. According to Moojing Market Intelligence data, in 2024 there were 249,000 power bank products on mainstream e-commerce platforms, a 46.4% increase from 2022.
Intense competition has pushed brands into a contest over specifications and prices, with larger capacities and smaller sizes sold at lower prices. In 2024, the average online price of power banks fell from 124.6 yuan two years earlier to 100.4 yuan, and the average price of high-capacity 20000mAh power banks fell 12.9% to 94.6 yuan. We believe this competition on low prices contributed to the safety incidents.
The recalls point directly to battery cells. It is reported that a supplier made an "unauthorized change of raw materials" in the manufacture of battery cells, which created a risk of self-ignition under extreme conditions. The brands did not name the supplier involved, and media investigations traced the incidents to a single battery cell supplier.
Battery cells account for more than 60% of the total cost of a power bank, and industry insiders also point out that the frequent quality problems with power banks are related to some manufacturers buying low-cost battery cells to save money.
The power bank industry generally uses a supply chain model of "brand owner, OEM factory, battery cell supplier", and OEM factories are common in both the upstream and the midstream of the chain. This outsourcing model has created two risks for the industry:
On one hand, OEM factories may cut raw material costs to increase their profit, or outsource production to smaller factories;
On the other hand, brands have blind spots in product testing, which makes it difficult for them to find problems in either the process or the technology.
In a recent media interview, the person in charge of charging and energy storage at one of the brands involved said that the recall happened because the brand did not identify the problem with the battery cells in time, and that most power bank companies did not have the capability to disassemble battery cells and analyse their materials.
Media reports also indicate that the quality problems are related to the fact that mandatory 3C certification for mobile power supplies in China only began in August 2024. Until May 2025, the certification process also followed a "certificate first, factory inspection later" model, which could lead to differences between the sample submitted for certification and the mass-produced product.
As of July 3, the State Administration for Market Regulation had suspended 5,269 3C certificates related to power banks and revoked 343, involving multiple brands, and all 74 3C certifications of the battery cell supplier at the source of the recalls had been suspended or revoked.
We believe the scale of these revocations shows gaps in past certification procedures and in the quality inspection processes of brands.
III. The Market Consolidates as the Era of "Low Price for Market Share" Ends#
The series of safety incidents has halted the industry's race to low prices and made safety and quality supervision far stricter than before.
For established brands, improving the supply chain and upgrading testing technology have become the main areas for improvement.
In the same interview, the brand's executive said that the company has invested considerable staff and funds in a battery cell laboratory and a traceability platform, to ensure the reliability of each battery cell and the traceability of each product throughout the process. Besides changing suppliers, it is making more demands of its existing suppliers, such as sharing all data from the production process for timely analysis.
The brand is also publishing the progress of its recall on its official website and social media, and offering consumers a choice of a refund, a replacement or a voucher. These steps are part of a series of public relations measures to regain the trust of its users. About 70% of users in the recall process chose an exchange or a voucher, which suggests that most consumers chose to continue trusting the brand.
After the turmoil of June, the power bank market has reorganised considerably. ZMI, backed by the Xiaomi ecosystem, drew on the popularity of 苏超 to gain attention quickly.
After the new regulations took effect, 3C certification became a major marketing selling point, and searches for related products grew 120%. Larger brands are expanding their share of the market through their strengths in supply chain management, research and development and flexible product strategies, so sales became more concentrated in June. Small and medium-sized companies that cannot meet the certification requirements are likely to leave the market.
Product prices have also risen considerably, which has created profit margins for brands. Moojing Market Intelligence data shows that the average price of online power banks in June was 114.1 yuan, an increase of nearly 16% over the previous rolling year.
We expect the turnover of companies in the mobile power supply industry to continue to accelerate, which is both a test and an opportunity for brand manufacturers. Quality control will become a core competitive strength, and the companies that remain should enjoy a healthier period of growth.
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