(Yicai) July 4 -- Apex Wuxi, one of China’s leading producers of core power bank parts, has suspended production and received an investigation for its involvement in a recent power bank recall scandal.

Several Apex workers today gathered near the factory gate in Wuxi to discuss finding new jobs, but they declined to comment when asked about the firm’s operational situation. However, one of them confirmed to Yicai that Apex halted production and suspended all hiring processes.

Yicai also learned from a staffer from the Wuxi Administration for Market Regulation that an investigation is being conducted to check whether Apex’s products have defects. Officials in uniforms were spotted arriving at the company’s factory on government vehicles yesterday.

On June 10, Apex’s China Compulsory Certification, a mandatory safety and quality certification system for some products sold in the country, was temporarily suspended after its original equipment manufacturer improperly altered separator materials in battery cells.

This prompted Chinese power battery makers Anker Innovations and Romoss, two of Apex’s main clients, to recall over 1.2 million units between June 16 and 20 over combustion risks under extreme conditions.

On June 26, China’s aviation regulator issued an emergency notice banning passengers from carrying power banks without the 3C certification after a series of in-flight incidents.

Founded in 2014 as a joint venture between US lithium-ion battery maker Amprius Technologies and China’s Wuxi Industry Development Group, Apex had produced over 100 million lithium battery cells as of the end of 2023. Ugree and Xiaomi are also among its main clients.

Editor: Futura Costaglione