Signal 1: Curbing Overcapacity and "Involution"

A key concern is severe overcapacity. Zhang Tianren, a National People's Congress (NPC) deputy and Chairman of Tianneng Holding Group, highlighted that the planned overcapacity rate for power batteries exceeds 150%, and for energy storage cells, it surpasses 300% .

To combat this, Zhang proposes a dynamic capacity control system. Relevant ministries should use big data to monitor national capacity, utilization rates, and demand, issuing regular overcapacity warnings . He also calls for raising market entry barriers and promoting mergers to consolidate the fragmented industry .

Zhang warned that vicious price wars are pushing some companies to compromise safety by using inferior cells, eroding the industry's foundation .

Signal 2: Boosting Next-Gen Batteries with Tax Breaks

To foster future growth, the government is turning its attention to solid-state and sodium-ion batteries. Yang Quanhong, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), stated that solid-state batteries are the "bridgehead" for the next iteration of the lithium industry .

A significant policy recommendation is to include these new types of batteries in the consumption tax exemption scope to ease cost pressures during their initial commercialization .

Hu Chengzhong, another NPC deputy, suggests accelerating the formulation of national standards for automotive solid-state batteries and using government guidance funds to channel capital into the sector .

Signal 3: New Horizons from the Low-Altitude Economy

The booming low-altitude economy is creating a vast new market for power batteries. Li Liangbin, an NPC deputy and Chairman of Ganfeng Lithium, emphasized that the competition in this sector is fundamentally a contest of battery technology.

He noted that while current eVTOL cells exceed 300Wh/kg, reaching 400-500Wh/kg is essential for routine operations . Li suggests establishing national special projects to tackle challenges like high energy density and wide temperature range, and to develop specific industry standards .

This view is echoed by Zeng Yuqun, Chairman of CATL, who stated that the company will increase R&D investment in new materials and chemistries, using AI to accelerate the development cycle .

Outlook

The 2026 Two Sessions are guiding the lithium battery industry away from extensive expansion toward a future defined by technological prowess and ecosystem building. For industry players, navigating this policy landscape will be key to securing their position in the next phase of global competition.