Deputy Secretary-General Tang Yan of the China Chemical and Physical Power Industry Association: Establishing capacity warning mechanisms to guide the lithium battery industry in "anti-insulation."

On November 18th, the seminar on the cost research of lithium iron phosphate materials industry was held in Beijing. Tang Yan, the deputy secretary-general of the China Chemical and Physical Power Industry Association, stated that the lithium battery industry is facing the most severe "internal competition" challenge in its development history. The lithium iron phosphate materials industry has become the most competitive and profit-pressured link in the lithium battery industry chain. In response to this, Tang Yan proposed three industry collaborative initiatives on behalf of the industry association. First, using cost index as a measure to reestablish market pricing logic. The association will work with mainstream enterprises to build a cost accounting system covering raw materials, production, logistics, and the entire network, providing transparent value references for enterprises to prevent vicious competition below cost, and provide data support for government regulation to make policy regulation more precise and efficient. Second, using innovation and upgrading as a breakthrough point. The association will continue to promote cutting-edge technology research and development, transitioning the industry from scale competition to quality competition. Third, focusing on supply-demand balance to build a collaborative development ecosystem. By establishing a capacity warning mechanism, promoting long-term strategic cooperation between material enterprises and downstream leaders, guiding the orderly release of production capacity to avoid the issue of demand growth not leading to profit growth.