Transformation of the Lithium Battery Industry: Driven by Policy Tightening and Efficiency Optimization

For a long time, some enterprises in the lithium battery industry have been caught in a vicious cycle of low-price competition for orders. This not only dragged down the overall profitability of the industry, but also restricted the investment in technological R&D and the pace of industrial upgrading. With the continuous deepening of supply-side structural reforms, anti-involution has become an industry consensus, and enterprises have successively shifted their focus to technological breakthroughs and full-chain efficiency optimization. The revised Mineral Resources Law, officially implemented on July 1, 2025, has emerged as a crucial turning point for the standardized development of the industry. The law explicitly classifies lithium as a strategic mineral resource, implements a protective mining system, and strengthens the approval and supervision of resource exploitation. Tighter policies have forced the industry to optimize its layout from the source. Previously, a number of lithium mining enterprises in core lithium resource-producing areas such as Yichun in Jiangxi Province and Qinghai Province have been required to complete reserve verification or suspend production for rectification. Inefficient production capacity in the industry is accelerating its exit, and leading enterprises have further consolidated their market positions by virtue of their resource endowments and compliance advantages, making the Matthew Effect increasingly prominent. Against this backdrop, cost reduction and efficiency improvement across the entire industrial chain have become the core demands of the industry. From the standardization of lithium mining to the intelligentization of battery production, the industry is undergoing a transformation towards high-quality development through full-process optimization.