In-Depth Analysis Report on the Anti-Internal Competition Work Conference for the Lithium Battery Industry

In response to your request, this report provides a comprehensive analysis of the anti-internal competition work conference for the lithium battery industry and its 20 measures. Below is the detailed research report:

---

On January 7, 2026, the Ministry of Industry and Information Technology (MIIT), National Development and Reform Commission (NDRC), State Administration for Market Regulation (SAMR), and National Energy Administration (NEA) jointly held a symposium on the power and energy storage battery industry to research and deploy work on further standardizing the competitive order of the power and energy storage battery industry[1][2]. Li Lecheng, Party Secretary and Minister of MIIT, attended the conference and delivered a speech, while Vice Minister Xin Guobin presided over the conference[1].

This is a high-profile industry conference held just 40 days after the symposium for manufacturing enterprises in the power and energy storage battery industry organized by MIIT on November 28, 2025[1][3]. Notably, both conferences focused on core topics such as preventing overcapacity, strengthening industry self-discipline, and enhancing intellectual property protection.

According to media reports such as Jiemian News, this conference convened

, including[4][5]:

Category	Enterprise Name
Power and Energy Storage Battery Enterprises (13)	CATL (Contemporary Amperex Technology Co., Ltd.), BYD Company Limited, CALB Group Co., Ltd., Gotion High-Tech Co., Ltd., EVE Energy Co., Ltd., Sunwoda Electronics Co., Ltd., SVOLT Energy Technology Co., Ltd., REPT BATTERO Energy Co., Ltd., Guangdong Great Power Energy Co., Ltd., Xiamen Hithium Energy Storage Technology Co., Ltd., Shenzhen ZNL Energy Co., Ltd., Zhejiang Jiyao Tongxing Energy Technology Co., Ltd., Chuno New Energy Technology Co., Ltd.
System Integrators (3)	CRRC Zhuzhou Institute Co., Ltd., Hypertec Energy Co., Ltd., Trina Storage Co., Ltd.

In addition, two major industry organizations, the China Automotive Power Battery Innovation Alliance and China Chemical and Physical Power Sources Industry Association, participated throughout the conference to advocate for industry self-discipline[4][5].

The battery enterprises participating in this symposium are nearly all top players in the global power and energy storage battery shipment rankings, fully demonstrating the industry influence and policy resolve of this conference[1].

---

According to disclosures from media such as Battery China Network, this conference rolled out

, covering multiple dimensions including capacity management, price supervision, quality oversight, intellectual property protection, and regional coordination[6][7]. Below is a systematic sorting of the core measures:

Measure Key Points	Specific Content
Capacity Survey	Conduct dynamic surveys of enterprises’ capacity and utilization rates, and establish a capacity monitoring and hierarchical early warning mechanism[2][6]
Tighter Approval	In principle, tighten or withhold approval for new projects with low capacity utilization[6][7]
Central-Local Coordination	Strengthen central-local collaborative linkage and comprehensive policy implementation to strictly control redundant construction[2][6]
Local Investment Attraction Restraints	Relevant local governments shall not engage in excessive investment attraction or blindly promote capacity expansion of new energy batteries[6]
Restraint Tools	Use tools such as financing, environmental impact assessment, and tax rebate restrictions to rein in low-efficiency capacity[8]

: This series of measures aims to curb disorderly capacity expansion from the source, particularly targeting second-tier battery enterprises with low capacity utilization. According to the MIIT’s “Specification Conditions for the Lithium Battery Industry (2024 Version)”, the actual output of an enterprise in the previous year declared for filing must not be less than 50% of its actual capacity in the same year[8].

Measure Key Points	Specific Content
Price Monitoring	Establish a cost-based monitoring mechanism to detect and correct abnormal price values[6][7]
Price Law Enforcement	Strengthen price law enforcement inspections and investigate and punish dumping acts below cost price[2][6]
Quality Oversight	Intensify supervision and inspection of production consistency and product quality, and crack down on issues such as false labeling and cutting corners[2][6]
Intellectual Property	Crack down on intellectual property-related illegal acts[2][6]

: Price wars are the core manifestation of “internal cutthroat competition” in the current lithium battery industry. Taking the energy storage industry as an example, the price of energy storage systems has dropped by approximately 80% in the past three years, and the winning bid price of a recent centralized procurement project even fell below RMB 0.4 per Wh, deviating significantly from costs[4].

Measure Key Points	Specific Content
Role of Industry Associations	Leverage the role of industry associations to guide enterprises in scientifically planning capacity layout[2]
Quality-Based Pricing	Promote the establishment of a market order featuring quality-based pricing and fair competition[2][6]
Cost Accounting	Industry associations take the lead in establishing a cost accounting and price self-discipline system[8]
Leading Enterprise Consensus	Promote leading enterprises to reach a consensus on “quality-based pricing”[8]

Measure Key Points	Specific Content
R&D Threshold	R&D intensity shall not be less than 3% of revenue and not less than RMB 10 million[8]
Technical Standards	Formulate higher technical standards, such as requiring power batteries to not catch fire or explode within 2 hours after thermal runaway[8]
Carbon Footprint Management	Launch power battery carbon footprint declaration in December 2025, and establish a mutually recognized international system by the end of 2026[8]
Innovation Guidance	Guide resources to innovative directions such as solid-state batteries, sodium-ion batteries, and silicon-carbon anodes[8]

According to conference information, a punishment mechanism will be established for non-compliant enterprises, which may include

[6][7]. The establishment of this mechanism will effectively curb irrational competitive behaviors of enterprises.

---

Since 2010, the lithium battery industry has experienced two major price fluctuation cycles[4]:

Cycle	Time Period	Key Characteristics
First Cycle	2015-2019	Affected by new energy vehicle subsidy policies and supply-side disturbances, the price of lithium carbonate rose from RMB 42,000 per ton to RMB 180,000 per ton, then fell back to RMB 48,000 per ton[4]
Second Cycle	2020-2023	Driven by surging global new energy vehicle demand, the price of lithium carbonate peaked at nearly RMB 600,000 per ton, then fell back to around RMB 60,000 per ton due to large-scale capacity expansion[4]
Third Cycle	Second Half of 2025	With the explosive growth of energy storage demand and lagging supply growth, the price of lithium carbonate returned to the RMB 140,000 per ton threshold[4]

Indicator	Data	Source
Lithium Energy Storage Cell Capacity	Over 2100 GWh	Tanso Energy Storage Network[9]
Global Annual Installation Demand	Only about 400 GWh	Tanso Energy Storage Network[9]
Capacity Utilization Rate	Less than 50%	Tanso Energy Storage Network[9]

The capacity utilization rate of leading enterprises remains above 80%, with some even operating at full capacity; while the capacity utilization rate of small and medium-sized enterprises is generally less than 30%, with some enterprises in a state of suspension or semi-suspension[3][10].

Indicator	Data	Source
Price Drop of Energy Storage Systems	Plunged by nearly 80% in three years	Tanso Energy Storage Network[9]
Lowest Winning Bid Price	Fell below RMB 0.4 per Wh	Jiemian News[4]
Price Drop of Lithium Iron Phosphate Materials	Dropped from RMB 173,000 per ton to RMB 34,000 per ton, a decrease of 80.2%	Time Weekly[11]

Zeng Yuqun, Chairman of CATL, pointed out that cutthroat low-price competition in the energy storage industry will inevitably lead to material and configuration reductions, planting hidden quality and safety risks for the industry[4].

According to statistical data from Wind, among 104 lithium battery concept stocks in the first three quarters of 2025[3][12]:

• CATL alone earned over 43% of the total industry profit
• The combined profit of CATL and BYD accounted for more than 60% of the total industry profit
• Leading enterprises have orders scheduled until 2026 and are operating at full capacity

Tang Yan, Deputy Secretary-General of the China Chemical and Physical Power Sources Industry Association, stated that the lithium iron phosphate material industry has become the most competitive and profit-pressured link in the lithium battery industrial chain, with the entire industry suffering continuous losses for over 36 months, and the average asset-liability ratio of 6 listed enterprises reaching 67.81%[11].

Over 96% of energy storage projects adopt lithium battery technology, and the performance difference between 280Ah and 314Ah cells is less than 5%. Users can only take price as the core decision-making indicator, forcing enterprises into a low-price competition[9].

---

Indicator	Expected Effect	Actual Progress
Capacity Approval	Tighten approval for new projects with low utilization rates	Starting from January 2026, many regions have conducted pre-assessments of capacity utilization for new projects[8]
Capacity Clearing	Accelerate exit of backward capacity	Some projects were voluntarily terminated starting from Q3 2025[8]
Leading Enterprise Effect	High-quality capacity concentrates on leading enterprises	Capacity utilization rate of leading enterprises recovered first[8]

Indicator	Before Policy	After Policy
Lithium Carbonate Price	Fell below RMB 60,000 per ton in June 2025	Approached RMB 150,000 per ton in January 2026[13]
Energy Storage Battery Price	Low-price orders frequently emerged	Low-price orders decreased starting from Q4, and prices gradually returned to the cost line[8]
Lithium Iron Phosphate Processing Fee	Long-term losses	The full range of processing fees was uniformly increased by RMB 3,000 per ton starting from 2026[11]

The State Administration for Market Regulation (SAMR) conducted special random inspections of product quality, investigated and punished enterprises with false labeling and non-compliant consistency, and exposed typical cases[8]. This measure has effectively curbed the behavior of inferior products disrupting the market.

Enterprise Type	Changes Observed
Leading Enterprises	Stated opposition to price wars, shifted to technological and brand competition; year-on-year R&D investment increased significantly[8]
Second-Tier Enterprises	Price advantages were eroded, facing survival pressure[5]
Material Enterprises	Announced price adjustments one after another, attempting to support prices[11]

---

Based on financial data analysis[5][14]:

Enterprise	Capacity Utilization Rate (H1 2025)	Gross Profit Margin	Net Profit Attributable to Parent Company Performance
CATL	89.86%	Significantly Higher	Standalone leader, accounting for over 43% of industry profit
EVE Energy	74.8% (First Three Quarters)	Approximately 15%	Rose first, then fell
Sunwoda	53.6% (Power Battery Segment, Q1)	Approximately 15%	Rose first, then fell
CALB	Relatively Low	Approximately 15%	Relatively Good

This differentiation reflects the industry’s capacity pattern of “the strong get stronger and the weak get weaker”[3][5].

The competition in the current lithium battery industry has evolved from “internal cutthroat competition” in capacity and price among individual enterprises to a supply chain ecological showdown centered on core battery manufacturers[11]:

Cooperation Model	Case
Equity Binding	CATL plans to inject RMB 2.563 billion to increase capital in Jiangxi Shenghua, raising its shareholding ratio to 51%[11]
Technology Binding	CATL established comprehensive cooperation with Jiayuan Technology on new-type negative current collector materials for batteries[11]
Sodium-Ion Battery Cooperation	CATL signed a comprehensive product and technology cooperation agreement on sodium-ion batteries with Ronbay Technology[11]
Long-Term Contract Lock-In	Longpan Technology and Chuno New Energy signed a sales agreement for 1.3 million tons of lithium iron phosphate, with a total value exceeding RMB 45 billion[11][15]

Since the second half of 2025, the price of lithium carbonate has rebounded strongly, with the main driving factors including[13][16]:

1. Supply-Side Contraction
   : Lithium extraction projects from salt lakes are in the ramp-up phase, making it difficult to form effective supply in the short term; concentrated maintenance of lithium iron phosphate enterprises before the New Year led to production cuts
2. Policy Impact
   : The MIIT’s anti-internal competition conference changed the market’s expectation of overcapacity
3. Demand-Side Growth
   : Explosive growth of energy storage demand; it is expected that China’s battery output will exceed 1500 GWh in 2025[1]
4. Cost Support
   : The “Solid Waste Comprehensive Management Action Plan” issued in December 2025 further pushed up enterprise operating costs

---

Challenge Type	Specific Performance
High Hidden Inventory	Some small and medium-sized capacities still exchange price for volume[8]
Uneven Regional Implementation	There are differences in the implementation intensity of policies across regions[8]
Difficulty in Cost Accounting	Cross-link price coordination is difficult, and the cost accounting system needs to be improved[8]
Technological Homogenization	It is difficult to obtain technological premiums, forcing enterprises into price wars[4]
Rigid Cost Pressure	Rigid costs such as bank loans, personnel expenses, and equipment depreciation brought by large-scale construction in the early stage[4]

Feng Siyao, Deputy Secretary-General of the Energy Storage Application Branch of the China Chemical and Physical Power Sources Industry Association, recommended[3]:

“Tackling ‘internal cutthroat competition’ cannot rely solely on ‘ordering a stop’; it must rely on ‘rules + standards + credit’. It is recommended to increase the weights of indicators such as availability rate, attenuation, efficiency, warranty clauses, operation and maintenance capabilities, accident liability, and insurance in the bidding evaluation system, so that ‘bad money cannot drive out good money’.”

According to policy planning[8]:

Time Node	Key Work Focus
Q1 2026	Complete the national capacity utilization survey and release the hierarchical early warning list; establish a price and cost monitoring platform and launch the first batch of abnormal price inspections
Q2-Q3 2026	Conduct special law enforcement on quality and intellectual property, impose financing and tax rebate restrictions on non-compliant enterprises; promote the mutual recognition of carbon footprint accounting standards with international standards
Q4 2026	Evaluate policy effects, dynamically optimize capacity and price control measures; release the annual industry high-quality development report

---

:

• Jointly issued by four ministries, the policy intensity is unprecedented[4][6]
• The measures cover multiple dimensions such as capacity, price, quality, and intellectual property, forming a closed-loop governance system[2][6]
• Leading enterprises participate actively, and industry self-disconsciousness is enhanced[8]
• The price of lithium carbonate has rebounded, and the profitability of enterprises has improved marginally[13]

:

• Expected growth in market demand may lead to a resurgence of enterprises’ capacity expansion impulse[15]
• Survival pressure on small and medium-sized enterprises increases, and they may adopt more aggressive pricing strategies
• Local protectionism and investment attraction impulses may still interfere with policy implementation[6]
• Global economic uncertainty affects the growth of new energy demand

Trend	Judgment
Capacity Pattern	The concentration of leading enterprises will further increase, and second-tier enterprises will face integration or exit
Competition Model	Shift from “price war” to “technology war” and “brand war”
Technological Evolution	New technologies such as solid-state batteries and sodium-ion batteries will accelerate commercialization
Profit Recovery	The industry is expected to achieve both profit and valuation recovery in 2026[17]

1. Focus on Leading Enterprises
   : Leading enterprises such as CATL and BYD will further benefit from industry integration
2. Beware of Second-Tier Risks
   : Enterprises with low capacity utilization and insufficient R&D investment may face greater pressure
3. Seize Structural Opportunities
   : Emerging fields such as solid-state batteries, sodium-ion batteries, and carbon footprint management
4. Policy Tracking
   : Continuously pay attention to the subsequent policy implementation and the effect of industry self-discipline

---

[1] Beijing News - Carbon Discussion| Forty Days Later, Lithium Batteries Reignite “Anti-Internal Cutthroat Competition” in the New Year

[2] Beijing News - Carbon Discussion| Forty Days Later, Lithium Batteries Reignite “Anti-Internal Cutthroat Competition” in the New Year

[3] Sohu Auto - Four Ministries Convene 16 Lithium Battery Leaders to Reemphasize “Anti-Internal Cutthroat Competition”

[4] Jiemian News - MIIT Leads Warning Against Irrational Competition in the Lithium Battery Industry

[5] Sohu - MIIT Leads Warning Against Irrational Competition in the Lithium Battery Industry

[6] 21st Century Business Herald - New Export Tax Rebate Policy for Photovoltaic and Lithium Battery Industries Issued

[7] Tencent News - CATL Has Locked in Over RMB 500 Billion Worth of Lithium Iron Phosphate

[8] NetEase - Deciphering the 8 Major Reasons for the Skyrocketing Lithium Carbonate Price

[9] Tanso Energy Storage Network - Plunged 80% in Three Years! Energy Storage Price Wars Forced 30% of Players to Exit

[10] Forward Industry Research Institute - In-Depth Sorting of the Lithium Battery Industrial Chain in 2025

[11] Time Weekly - The Lithium Battery Supply Chain War Amidst the RMB 820 Billion Capacity Expansion Wave

[12] [JRJ -