Core Viewpoint - The battery foil market is experiencing significant changes due to price reductions driven by suppliers and competitive pressures from emerging players [3][4][5]. Group 1: Price Changes and Market Dynamics - A major battery manufacturer has implemented a price reduction of 600-800 RMB per ton for battery foil processing fees, contrary to earlier rumors of a larger decrease [3]. - The price war initiated by the battery manufacturer has led to a rapid recovery in orders for the traditional supplier, with production rates increasing significantly in June [5]. - The market is characterized by high customer concentration, leading to continuous cost-cutting demands and a downward trend in processing fees [10]. Group 2: Supply Chain and Capacity Utilization - As of Q1 2025, the overall market capacity utilization rate was 63%, with an expected increase of 9 percentage points to 72% in Q2 [7]. - Despite a loose supply-demand balance, total capacity is projected to grow each quarter throughout 2025, indicating ongoing investment in the battery foil market [9]. - The market remains dominated by a few strong players, with Ding Sheng New Materials holding nearly 30% of the capacity as of Q1 2025 [5]. Group 3: Competitive Landscape - Some suppliers are using price cuts as a strategy to gain market share and push competitors out, but the substantial profits accumulated during the market boom from 2021 to 2023 provide resilience against exit [12].