Core Viewpoint - The lithium battery industry is transitioning from a single focus on consumer electronics to a diverse range of applications including electric vehicles, energy storage, low-altitude economy, and humanoid robots, as companies seek to build sustainable growth curves amid uncertainty [1][3]. Industry Challenges - The lithium battery supply chain is under pressure this year, with significant fluctuations in upstream raw material prices and a "price war" in the downstream market. The market is experiencing structural differentiation, with lithium iron phosphate batteries capturing over 80% market share in the power sector, while household and commercial energy storage are emerging as new growth engines [3][5]. - The industry has seen a tenfold increase in production over four years, with China holding 75% of global material supply and 85% of power battery capacity. However, leading in scale does not equate to leading in profits, as the overall gross margin has been compressed by 12% to 17%, and net profit margins have dropped below 4% due to cost pressures and price competition [5][12]. Industry Restructuring - The current "big reshuffle" in the lithium battery sector is viewed as a necessary phase towards maturity, as the industry moves from rapid growth to consolidation and differentiation [4][6]. - Companies are shifting their strategic focus towards deep development of niche applications, leveraging a "technology + scenario" approach to build differentiated competitive advantages [8][9]. Technological Development - Companies are adopting practical and diverse strategies in technology selection, with a gradual approach towards solid-state batteries while balancing technological maturity and market acceptance. Lithium iron phosphate has become the dominant technology, holding nearly 80% market share, but nickel-cobalt-manganese batteries remain irreplaceable in high-end applications due to their energy density advantages [10][12]. - The demand for energy storage batteries continues to strengthen, with emerging fields like low-altitude economy and humanoid robots pushing battery technology to new heights [9][10]. Global Market Dynamics - Leading companies are extending their vision to global markets and sustainable development, emphasizing the need for agility and strategic adjustments based on deep technological accumulation and market trend analysis. The industry is shifting from a focus on production capacity to a comprehensive consideration of product quality, brand value, supply chain security, and lifecycle carbon management [12][13]. - The global market is becoming a key battleground for value reconstruction, with a price difference of 15%-20% and stable gross margins above 25% indicating that globalization is essential for profit growth. However, companies must navigate trade barriers such as the US IRA Act and the EU's new battery regulations, which redefine market entry rules [12][13].