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According to Sinochem New Network, as of April 13, out of the 42 listed companies in the upstream and core material sectors of the lithium battery industry, 24 had released their annual reports for 2025 as well as announcements of increased profits; all of these companies achieved profit increases or managed to turn losses into profits； The net profits of 5 companies, including Shengxin Lithium Energy, China Minmetals Resources, and Shida Shenghua, declined. By 2025, driven by factors such as the industry’s effort to counter excessive competition and a reversal in supply and demand, the profitability of industries related to lithium batteries will further improve, thereby strengthening the resource foundation for the development of new energy in China. In 2025, the Lithium Industry Branch of the China Non-ferrous Metals Industry Association issued an \"Initiative for the Healthy Development of the Lithium Industry\" to strengthen industry self-discipline. The Ministry of Industry and Information Technology held seminars to address the irrational competition in the power and energy storage battery sectors. At the same time, efforts to regulate lithium mining rights continued, with the aim of reshaping the ecosystem of the lithium battery industry. Lithium ore is the foundational resource in the lithium battery industry chain. Eight out of the 13 listed lithium resource companies saw growth in their performance. Data shows that by 2025, Ganfeng Lithium and Tianqi Lithium will achieve net profits of 1.613 billion yuan and 463 million yuan respectively, turning from losses to profits on a year-on-year basis. Ganfeng Lithium stated that, influenced by changes in the supply and demand dynamics as well as fluctuations in the lithium product market, prices of lithium products dropped to new lows before rebounding strongly, resulting in an improvement in the company’s operational performance on a year-on-year basis. Tianqi Lithium stated that its financial performance has improved, thanks to factors such as a significant reduction in the impact of pricing cycle mismatches and a substantial year-on-year increase in the performance of its key affiliate, Chile Chemical Mining Company. Meanwhile, the new energy vehicles and energy storage markets are exerting strong demand on the lithium battery sector. In the key material sectors such as positive and negative electrodes, separators, and electrolytes, 16 companies achieved an increase in net profit by 2025. Among them, Rongbai Technology, Tianli Lithium Energy, and Longpan Technology managed to turn losses into profits or significantly reduce their losses. Tianli Lithium Energy stated that its competitive position in the niche market of new energy cathode materials, along with technological advancements, have enabled the company to transform several product models, which has had a positive impact on profit growth. Hunan Yueneng stated that the rapid development of the new energy vehicle and energy storage markets has driven up the demand for lithium battery cathode materials, resulting in a structural supply shortage; as a result, the company’s sales of phosphate cathode material products have increased significantly. According to statistics from the China Association of Automobile Manufacturers, the total sales volume of new energy vehicles in China in 2025 was 16.49 million units, representing a year-on-year increase of 28.2%, which drove battery-grade lithium carbonate prices to experience a \"V\"-shaped recovery. In the first half of last year, the price of lithium carbonate dropped to a historical low of below 60,000 yuan per ton, pushing the entire industry into a loss-making situation ； In the second half of the year, the supply and demand dynamics reversed, leading to a continuous rise in prices; by the end of the year, the price of battery-grade lithium carbonate climbed to 119,000 yuan per ton, which directly helped leading companies improve their financial performance. “Following the reduction of excessive competition and the consolidation of production capacity in the four main material segments of the lithium battery industry chain, the supply-demand balance has improved, leading to a substantial recovery in prices and profitability. Among these segments, electrolytes and separators are expected to see the most significant improvements in profitability due to tight supply and demand conditions. ”Zhu Hualai, a senior investment advisor at Shaanxi Jufeng Investment Information Co., Ltd., said. As policy interventions, corporate self-discipline, market clearing, and surging demand work together, the lithium battery industry is shifting from scale-based competition to value-driven competition. 2026 will be a crucial year for the rapid increase in the penetration rate of lithium batteries. As the supply and demand dynamics in the power battery industry improve, it is expected that both the volume and price of power batteries will rise. Wanlian Securities predicts that by 2026, the global lithium battery industry will enter a new period of growth. Power batteries will benefit from the increasing sales of new energy vehicles, higher energy capacity per vehicle, and the accelerated electrification of heavy trucks, while energy storage batteries will benefit from rising demand both domestically and internationally; as a result, the overall growth rate in shipments is expected to remain above 20%.