Core Viewpoint - The article discusses the recent decision by Jiangsu Guotai to terminate its investment in a lithium-ion battery electrolyte project due to unfavorable external conditions and industry environment changes, highlighting a trend of timely loss mitigation in the industry [4][7][8]. Group 1: Project Termination - Jiangsu Guotai announced the termination of a project aimed at producing 400,000 tons of lithium-ion battery electrolyte, with a total investment of 1.53798 billion yuan [4][8]. - The project was to be implemented by its subsidiary Ningde Huaron, located in Ningde City, with a planned construction period of 24 months [8]. - The decision was made as the project had not yet commenced construction and the company is actively coordinating with the government regarding land use [7][8]. Group 2: Industry Context - The termination reflects a broader trend in the lithium battery industry, where there is a noticeable slowdown in capacity expansion across various segments, including lithium carbonate, anodes, cathodes, and electrolytes [8]. - Jiangsu Guotai's decision is seen as aligning with market competition trends, preserving financial strength amid a market characterized by low prices and excess low-end capacity [8]. - The industry is shifting towards higher-level competition, moving beyond mere capacity expansion [8]. Group 3: Financial Performance - In the first half of 2025, Jiangsu Guotai reported a revenue of 18.597 billion yuan, a year-on-year increase of 5.48%, and a net profit attributable to shareholders of 545 million yuan, up 10.85% [9]. - The chemical products segment, which includes battery chemicals, accounted for only 5.24% of total revenue, indicating a relatively small contribution to overall performance [9]. - Jiangsu Guotai has established long-term partnerships with leading battery manufacturers, and its products are being applied in various markets, including power, energy storage, and consumer electronics [9].