From ground to low altitude, from liquid to solid, and from domestic to global, the lithium battery industry is ushering in a new era of development.
<img src="https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/OOQnyQER5BEuhl8CSODZR5mqMEclmwvWCCoK6IyodiGNAAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/OOQnyQER5BEuhl8CSODZR5mqMEclmwvWCCoK6IyodiGNAAA/641"/>
Hua Xia Energy Network observed that during the 2026 National Two Sessions, lithium batteries once again became a high-frequency keyword mentioned by representatives and committee members. However, this time, the focus of the discussion has quietly elevated: it is not just about growing larger, but about becoming stronger; not only discussing output but also standards, data, and the dominance of rules; not only reflecting on past achievements but also focusing on new opportunities for the future.
Unlike the narrative of rapid capacity expansion in previous years, this year's discussions on the lithium battery industry at the Two Sessions present a depth and coolness that have been tempered by cyclical experiences.
How can the dilemma of overcapacity be resolved? What risks does China's lithium battery industry face when going global under trade barriers? How can we seize the commanding heights of the next generation of application scenarios? Proposals and voices from multiple representatives and committee members have accurately &#34;diagnosed&#34; China's lithium battery industry and pointed out directions for breaking through.
Innovation and Standards: Competing for Global Lithium Battery Discourse Power
On the afternoon of March 4, at the first &#34;Committee Channel&#34; of the 14th National Committee of the Chinese People's Political Consultative Conference, Zeng Yuqun, chairman of CATL, stated that from the &#34;11th Five-Year Plan&#34; to the &#34;14th Five-Year Plan,&#34; the country has continuously promoted the development of renewable energy over the years, &#34;This strategic determination has provided a 'compass' for the entire industry and its practitioners.&#34;
<img src="https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/OqnvxeiXQWsDIFLCH2sLjTTCDFjsdTT7cEZ98vR1bbNYMAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/OqnvxeiXQWsDIFLCH2sLjTTCDFjsdTT7cEZ98vR1bbNYMAA/641"/> Zeng Yuqun, chairman of CATL
In the past twenty years, China's lithium battery industry has grown from nothing to something, from following to leading, evolving from a technical concept in a laboratory to a vast industrial chain encompassing mining, materials, batteries, applications, and recycling.
CATL is an outstanding representative of enterprises that have developed in line with the direction of the times, with a cumulative R&amp;D investment exceeding 80 billion yuan, over 20 billion yuan annually in recent years; more than 21,000 R&amp;D personnel; over 50,000 patents; products covering dozens of countries and regions worldwide, supporting over 20 million new energy vehicles, and serving over 3,000 energy storage stations.
Behind these numbers is the company's relentless pursuit of technological innovation. Zeng Yuqun stated that the most important aspect of the industry is not just the layout of the industrial chain and ecological chain, &#34;the most important thing is the insistence on independent innovation; we cannot just stay in the current model.&#34;
So, how can we break the existing model? Where is the focus of innovation? Zeng Yuqun identified five focal points: new materials, new chemical systems, new structural systems, new energy systems, and new manufacturing systems, namely intelligent manufacturing. He particularly emphasized the need to &#34;utilize more artificial intelligence methods&#34; to increase R&amp;D investment
In addition, Zeng Yuqun emphasized that China should not only sell its products to the world but also promote &#34;technology and standards&#34; globally.
However, after rapid advancements in technology and standards in China's lithium battery sector, it has encountered the &#34;iceberg&#34; of global trade rule games and non-market, irrational competition. The frequent imposition of tariffs by the United States and the implementation of the EU's &#34;New Battery Law&#34; have brought compliance costs, data sovereignty, and full-chain traceability issues to the forefront, becoming a &#34;roadblock&#34; for Chinese companies going abroad.
Zhang Tianren, a representative of the National People's Congress and chairman of Tianneng Holding Group, clearly stated that a Chinese version of the &#34;Battery Act&#34; system should be established, covering various categories such as lithium batteries and lead-acid batteries, to break down data barriers in the industry chain, promote green and intelligent upgrades of the industry, and effectively safeguard national industrial security and data security.
<img src="https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/O1IEnaIfFz-BX7m5m3HDgj6JZbZyMvNnLns4DziwygH0EAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/O1IEnaIfFz-BX7m5m3HDgj6JZbZyMvNnLns4DziwygH0EAA/641"/> Zhang Tianren, chairman of Tianneng Holding Group
Zhang Tianren pointed out that although China has already started pilot projects in building the &#34;battery ID&#34; information system, and some leading enterprises have established internal traceability systems, there are still significant shortcomings in overall advancement: the top-level design is not yet perfect, and cross-departmental coordination needs to be strengthened; the participation of the entire industry chain is uneven, with some enterprises still in a passive compliance stage; the authority and binding force of existing group standards are relatively weak and urgently need to be upgraded to national or industry standards; the digitalization process of different battery categories is unbalanced, and there is a lack of international mutual recognition mechanisms, posing significant challenges at the implementation level.
He suggested breaking the deadlock from four dimensions: improving collaborative mechanisms and perfecting the institutional system; accelerating standard construction and deepening pilot applications; deepening international connections and proactively leading rules; integrating advantageous resources and focusing on collaborative breakthroughs.
In his view, &#34;Building a digital ID system for new energy batteries that covers all categories and spans the entire lifecycle is a strategic foundational project related to the high-quality development of the industry and the new competitive advantages of the country.&#34;
Technology and Scenarios: Grasping the New Opportunity of Solid-State Batteries
The competition between innovation and standards belongs to a soft game, while the research and development race for the next-generation battery technology is a close, hardcore competition.
It is well known that the energy density and safety performance of liquid lithium batteries are approaching physical limits, and further iterations and upgrades depend on solid-state batteries.
&#34;Our solid-state battery industry has entered a critical stage of exploring large-scale production from technological breakthroughs,&#34; said Hu Chengzhong, chairman of the board of Delixi Group and a representative of the National People's Congress, noting that significant progress has been made in policy support, technological research and development, and industrial application of solid-state batteries.
<img src="https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/OmlPbGJiuxEuix5BCmO54eRJziMCFXq0mnhEaGFYYwgw8AA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/OmlPbGJiuxEuix5BCmO54eRJziMCFXq0mnhEaGFYYwgw8AA/641"/> Hu Chengzhong, chairman of the board of Delixi Group
Institutions predict that China's solid-state battery shipments are expected to exceed 65GWh by 2030 and further expand to over 300GWh by 2035
However, Hu Chengzhong is not blindly optimistic about the prospects of solid-state batteries. He pointed out several critical issues in the industry: the investment intensity of solid-state battery production lines is several times that of traditional lithium battery production lines, and equipment costs are high; the product certification cycle lasts 2-3 years, far exceeding the R&amp;D iteration cycle of enterprises; the lack of unified standards and excessive battery specifications lead to continuously rising adaptation costs.
In addition to high costs, slow certification, and chaotic standards, there is also a fatal flaw in the supply chain. Hu Chengzhong noted that there is insufficient collaboration in the industrial chain and weak self-control, with upstream ultra-pure raw materials and high-end testing equipment relying on imports, monopolized by companies from Japan, South Korea, and the United States; the midstream solid electrolyte has a structurally short supply capacity, and the high prices of core raw materials push up manufacturing costs; downstream application scenarios are highly concentrated in new energy vehicles, with insufficient market validation in other fields.
In response, Hu Chengzhong provided five suggestions: first, accelerate the formulation and implementation of national standards for automotive solid-state batteries; second, focus on core technology areas such as solid electrolyte materials, interface modification, and dry electrode, supporting enterprises and research institutions to form innovation alliances for collaborative research; third, cultivate and strengthen leading enterprises in the industrial chain to form a collaborative development ecosystem; fourth, optimize the way of fiscal investment to guide social capital towards the solid-state battery industry; fifth, carry out demonstration projects for solid-state battery applications, selecting key regions and enterprises in new energy vehicles, energy storage, and electric aviation for pilot demonstrations.
In terms of the application of solid-state batteries, the low-altitude economy is one of the most promising scenarios, with some institutions predicting that by 2035, the market size of China's low-altitude economy is expected to reach 3.5 trillion yuan.
&#34;Currently, the low-altitude flight market is at a window period transitioning from technological research and development to industrialization,&#34; said Li Liangbin, a representative of the National People's Congress and chairman of Ganfeng Lithium. The power systems of electric vertical takeoff and landing aircraft (eVTOL), large drones, and other aviation equipment face requirements that far exceed those of ground vehicles. This not only tests the energy density and discharge rate of power batteries but also demands extreme reliability under extreme conditions such as thunderstorms, low temperatures at high altitudes, and high wind speeds.
<img src="https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/OiGbg1puPFz7YL6ORVna6BEQLqPMg9y06b6lKbJRDwy-AAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/OiGbg1puPFz7YL6ORVna6BEQLqPMg9y06b6lKbJRDwy-AAA/641"/> Li Liangbin, Chairman of Ganfeng Lithium
Li Liangbin pointed out that although the energy density of commercially leading eVTOL battery cells has entered the range of over 300Wh/kg, meeting initial demonstration needs, to achieve economic operation of urban air traffic, it must evolve to a higher level. At the same time, existing battery standards cannot fully cover the harsh conditions of aircraft.
In response, Li Liangbin proposed five suggestions: strengthen top-level design and planning collaboration; enhance industry-university-research cooperation to accelerate the R&amp;D of high-performance batteries; establish and improve the industry standard system; provide financial, tax, and talent policy support to build an industrial ecosystem; and ensure supply chain security and the recycling of key elements.
Involution and Surplus: Calling for a New Industry Ecosystem
The high prosperity of the industry can sometimes obscure its cracks. Although the signs of recovery in the lithium battery industry, especially in the energy storage sector, are more apparent compared to the first half of 2025, the dilemmas of involution and surplus are still becoming increasingly severe
Data shows that the planned production capacity surplus rate for power batteries exceeds 150%, while the planned production capacity surplus rate for energy storage cells is as high as over 300%.
Zhang Tianren clearly pointed out, &#34;Currently, there is a serious phenomenon of 'rushing in and rushing out' in the industry, with raw material prices fluctuating violently, impacting the stable development of the entire industry.&#34; If these issues cannot be resolved well, the good development momentum of the industry will be shattered.
In his view, this disorderly competition has evolved into a systemic risk: some enterprises monopolize upstream and downstream resources, forming a monopoly advantage in the industrial chain, and bid below cost in project tenders, trapping the industry in a vicious cycle of &#34;low-price dumping—profit decline—quality shrinkage&#34;; some enterprises cut safety configurations in battery production, falsely report parameters, or use inferior cells to reduce costs, posing significant safety hazards to end applications.
Hua Xia Energy Network has noted that in the past three years, the prices of energy storage system products have plummeted by 80%, with some bidding prices breaking through the industry's cost red line. A more obvious data comparison is that the average price of 314Ah cells was 1 yuan/Wh at the beginning of 2023, and by mid-2025, it had dropped to as low as 0.28 yuan/Wh.
Zhang Tianren revealed that low-price competition has led to over 30 small and medium-sized integrators exiting the market in the first half of 2025, with the net profit margin of leading enterprises generally falling below 3%.
&#34;This irrational competition has forced some enterprises to compromise on key aspects such as cell quality control, system integration, and safety redundancy design. The practice of sacrificing product reliability and safety for short-term market share severely affects the healthy and sustainable development of the industry,&#34; said Zhang Tianren.
Regarding how to solve the industry's &#34;involution&#34; problem, Zhang Tianren proposed systematic suggestions from multiple levels: establish a dynamic capacity regulation system, where relevant national ministries rely on big data to monitor national battery capacity, output, utilization rate, and market demand, and regularly release capacity surplus warning indices; raise market access thresholds to prohibit low-level capacity from entering the market; promote industry mergers and acquisitions to enhance industry concentration; improve the energy storage bidding system by incorporating core value indicators such as full lifecycle costs, long-term reliability commitments, and safety redundancy configuration levels into the scoring system, cutting off the transmission chain of &#34;bad money driving out good money&#34; from the demand side.
With the explosive growth of the energy storage industry and new energy vehicles, safety issues are also a highly concerned topic in the industry, frequently discussed by representatives and committee members at this year's two sessions.
National People's Congress representative and Chairman of Taihe New Materials Group, Song Xiquan, approached the issue from the source of materials, proposing a fundamental proposition: &#34;Materials are the cornerstone of industry, and many safety hazards at the application end ultimately need to seek solutions from the source of materials.&#34;
<img src="https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/OrvKTQuKkE4vhe_zCtK4lTXbc17v3SbyB6GY5b2WuETysAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://inews.gtimg.com/news_bt/OrvKTQuKkE4vhe_zCtK4lTXbc17v3SbyB6GY5b2WuETysAA/641"/> Chairman of Taihe New Materials Group, Song Xiquan
Song Xiquan called for the country to further improve safety standards and industry regulations for lithium batteries, promote the unification of testing standards, and clarify core parameters such as puncture testing, establishing a quantifiable and comparable testing system. He also suggested setting up a special science and technology innovation fund to promote the demonstration application of battery cells using high-safety materials (such as high-performance aramid separators), achieving a systematic breakthrough in the intrinsic safety technology of lithium batteries from the cell level.
&#34;Only by preventing thermal runaway from the source of materials can we fundamentally enhance battery safety, extend passenger escape time, and ensure that the public can use them with confidence,&#34; said Song Xiquan.
From the past rough pursuit of shipment volume and installed capacity to the current fine-tuning of core technologies, industry standards, and underlying safety dimensions, China's lithium battery industry is undergoing a profound &#34;transformation.&#34; The insightful suggestions from representatives and committee members at the Two Sessions are a prescription for the current industrial pains, a directional map for China to grasp global discourse power in new energy, and a driving force for the transformation of China's lithium battery industry.
The transformation of China's lithium battery industry is by no means an overnight success, nor is it a smooth path. Building a good industrial ecosystem requires a two-way effort from both policy and enterprises. In this journey from &#34;scale-led&#34; to &#34;quality-led,&#34; those in the Chinese lithium battery sector need to maintain strategic determination, abandon short-sighted thinking aimed at quick profits, and contribute a more reliable, cleaner, and more economical Chinese solution to reshape the global new energy landscape

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China's lithium battery industry is entering a new era of development, with the focus of discussions shifting from production capacity to the dominance of standards and rules. During the National Two Sessions, representatives and committee members expressed concerns about how to resolve overcapacity, respond to global trade barriers, and seize new application scenarios. CATL Chairman Zeng Yuqun emphasized the importance of independent innovation and proposed five focal points to promote industry development

Farewell to "barbaric growth," Zeng Yuqun, Zhang Tianren, and Li Liangbin prescribe a remedy for China's lithium battery industry