With the exit of new energy vehicle subsidies from the historical stage, the relationship between supply and demand slowly returned to balance. The upstream raw materials prices of battery grade lithium carbonate, nickel, cobalt, phosphorus and other power batteries gradually return to a reasonable range, driving the price of high-nickel ternary, electrolyte and other first-order materials down, the cost of battery materials has been reduced, and the prices of all products in the industrial chain and supply chain are in correction.

  Specifically, the price of Chinese power battery callback main reasons for three. First, the power battery has entered the period of centralized production capacity release, which reduces the manufacturing cost by expanding production capacity and alleviates the price rise caused by periodical supply shortage. Second, innovative technologies emerge in the field of power battery, and product competitiveness is constantly improved, including continuous optimization of material system, greatly accelerated development of low-cost materials, and system structure innovation, which improves the energy density of system products and reduces the cost. Third, the ability to coordinate industrial chains has been strengthened. Downstream enterprises stabilize the relationship between supply and demand and gradually digest or share the cost pressure of enterprises through joint ventures, holding and direct extension of distribution.

  It is expected that in the future, under the background of the gradual release of upstream capacity and the slowing down of downstream demand growth, the power battery industry competition will be further intensified, and the price competition will be more obvious.

  It should be noted that, although price competition is an important means of marketing, disorderly competition through price war, such as the price of some intermediate products and materials fluctuates wildly beyond the normal range, individual links of the industrial chain appear to hoard and disturb the order of market prices, will also make prices lose the function of regulating production, circulation and consumption. The optimal allocation of resources is adversely affected.

  At present, the power battery industry is still in the technology-driven stage, and there is still a long way to go in terms of battery energy density improvement and route determination. Meanwhile, the penetration rate of new energy vehicles in China is expected to exceed 30 percent this year, with the output reaching 9 million units, according to estimates. Superposition lithium electric energy storage as the main new energy storage market rapid growth, in the downstream application demand, Chinese power and energy storage battery industry still has great development potential.

  Power battery price correction cycle can have how long, the industry will be a full price war, remains to be seen. At present, the industrial chain enterprises are needed to work together to tackle problems, regulate competition, and promote the sustainable and high-quality development of China's power battery industry.

  In the process of industrial upgrading, the stability and strengthening of the industrial chain and supply chain is very important. We should strengthen the connection between supply and demand, guide exchanges and cooperation between upstream and downstream enterprises, and promote the formation of a stable and efficient mechanism for coordinated development. We will encourage the establishment of long-term mechanisms through signing long-term orders and technical cooperation, so as to guide the upstream and downstream to stabilize expectations, clarify volume and price, ensure supply, and achieve win-win cooperation.

  In addition to the layout of upstream raw materials, the research and development of next-generation power battery products and technologies is also a focus. We should encourage technological innovation, enhance the competitiveness of enterprises' products, increase investment in research and development at the resource end, smelting and processing end, key materials and products end, recycling end, system integration end and production and manufacturing end, give play to the leading role of leading enterprises, and support upstream and downstream collaborative innovation and integrated development of large, small and medium-sized enterprises.