CATL(SZ:300750) Di Yi Cai Jing·2026-01-08 09:40Core Viewpoint - The Chinese government is taking steps to regulate the rapidly growing power and energy storage battery industry to address irrational competition and ensure sustainable development [1][2]. Group 1: Industry Overview - The power and energy storage battery industry in China has developed rapidly and gained a competitive advantage globally, but faces issues such as blind construction and irrational price competition [1]. - The industry has experienced significant price drops, particularly in lithium iron phosphate materials, which fell from 173,000 yuan/ton to 34,000 yuan/ton, a decrease of 80.2% from the end of 2022 to August 2025 [2]. Group 2: Regulatory Measures - The Ministry of Industry and Information Technology (MIIT) emphasizes the need for enhanced market supervision, price enforcement, and product quality checks to combat intellectual property violations [1]. - The MIIT also aims to optimize capacity management and strengthen macro-control to prevent overcapacity risks [1]. Group 3: Industry Challenges - The industry is facing a prolonged price war, with storage system prices dropping by approximately 80% over the past three years, raising concerns about quality and safety [4]. - A significant portion of system integrators is reportedly selling below cost, which is increasing the risk of systemic issues within the energy storage supply chain [4]. Group 4: Recommendations - Industry leaders are urged to resist bidding below cost and establish enforceable self-regulatory mechanisms to improve market conditions [5]. - There is a call for reforming the bidding evaluation system to increase the weight of technical scores, moving away from a price-centric approach [5].