Xin Jing Bao·2026-01-09 14:41Core Viewpoint - The lithium battery industry is undergoing a "reverse involution" phase, with recent meetings by government bodies aimed at regulating competition and promoting high-quality development in the sector [1][2]. Group 1: Meeting Overview - The recent meeting involved 16 companies, including 13 from the power and energy storage battery sectors, and focused on preventing overcapacity and promoting self-discipline and intellectual property protection [1][2]. - Key participants included major battery manufacturers such as CATL, BYD, and others, indicating a comprehensive representation of the industry's leading players [2][4]. Group 2: Industry Challenges - The lithium battery industry is facing severe "involution" challenges, characterized by irrational competition and overcapacity, which threaten sustainable development [1][3]. - The meeting emphasized the need for market regulation, price enforcement, and enhanced quality supervision to combat these issues [3][5]. Group 3: Regulatory Measures - Proposed measures include strengthening market oversight, optimizing capacity management, and supporting industry self-regulation through associations [3][5]. - The government aims to guide companies in rational capacity layout and promote fair competition in the market [5][6]. Group 4: Industry Performance - The lithium battery sector reported revenues of 1.78 trillion yuan in the first three quarters of 2025, reflecting a year-on-year growth of 12.81% [6]. - The demand for energy storage batteries has surged, with projections indicating that by 2025, nearly one-third of batteries produced will be for energy storage applications [6][7]. Group 5: Market Dynamics - There is a notable disparity in profitability among companies, with leading firms maintaining high capacity utilization rates while smaller firms struggle [7]. - The industry is expected to see a rationalization of capacity expansion, with potential price increases in underperforming segments [7][8].