Can rising lithium costs save China's energy storage firms from a brutal price war?

Group 1 - China's energy storage firms are experiencing a shift as lithium battery maker Deegares plans to raise prices by 15%, potentially breaking the ongoing price war in the sector [1] - Rising lithium costs have prompted at least three other battery makers to consider similar price increases, with lithium prices rebounding approximately 70% from this year's low due to increased demand from AI investments and electric vehicle purchases in China [2] - The Chinese government's "anti-involution campaign" is influencing the battery manufacturing sector, with the Ministry of Industry and Information Technology meeting industry leaders to address "irrational" competition [3] Group 2 - Envision Group reported that about one-third of system integrators were selling products below cost, leading to an 80% decline in selling prices over the past three years [5] - Investment bank Bocom International anticipates that the anti-involution campaign will persist, with some major companies like Sungrow operating at gross profit margins of only 15% to 20% in China, compared to 40% to 50% in the US [6] - The global demand for energy storage systems is increasing, particularly in the US and Europe, which are in need of solutions to manage electricity supply and demand effectively [7] Group 3 - In the first 11 months of the year, China exported 4.25 billion lithium batteries valued at over $69 billion, marking increases of 19.3% in units and 25.6% in value compared to the previous year, with Germany and the US being the largest markets [8]