Policy efforts to curb industry "involution"; the lithium battery concept becomes active again, and Foryou Holdings hits the daily limit-up.

MaticHoleFiller · 2026-04-01T19:52:55+00:00

By 2026, global lithium battery demand is expected to reach 3065 GWh, a year-on-year increase of 33.7%, driving the growth of electrolyte demand. Recently, lithium battery concept stocks have risen, while regulatory policies aim to prevent malicious competition and promote the industry's transition toward high-quality development. Although domestic sales face pressure, strong export performance is helping to boost the growth of power battery installations.

MaticHoleFiller

2026-04-01 19:52:55

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(Source: Finance News)

          According to institutional estimates, global lithium battery demand will reach 3,065 GWh in 2026, up 33.7% year over year, corresponding to an electrolyte demand of 3.67 million metric tons.

On April 1, the lithium battery concept gained activity again. The electrolyte industry chain led the rally. Furu Sun Co., Ltd. (002083.SZ) hit the daily limit. Tianji Shares (002759.SZ), Fuxiang Pharmaceutical (300497.SZ), Haichen Pharmaceutical (300584.SZ), Shinfon Holdings (300037.SZ), and Yongtai Technology (002326.SZ) followed suit.

In terms of the news, according to institutional estimates, global lithium battery demand will reach 3,065 GWh in 2026, up 33.7% year over year, corresponding to an electrolyte demand of 3.67 million metric tons. Of this, VC demand is 110,000 metric tons and FEC demand is 44,000 metric tons. On the supply side, VC’s effective production capacity in 2025 and 2026 will be 79,000/114,000 metric tons, while FEC’s effective production capacity is about 40,000/57,000 metric tons. Taken together, the price center is expected to remain in a high-end range of 150,000–200,000 yuan/ton.

On March 30, the State Administration for Market Regulation issued a notice on further implementing the “Anti-Unfair Competition Law of the People’s Republic of China,” which clearly calls for comprehensive efforts to rectify “involution-style” competition, with a focus on curbing vicious price wars in key industries and fields such as lithium batteries and new energy vehicles. This move is expected to guide the lithium industry to shift from homogeneous, low-price competition toward high-quality development, accelerating the reshaping of industry patterns and the concentration of industry leadership.

CITIC Securities said that the lithium battery industry chain is currently in a peak season characterized by “quantity leading, price following.” Although domestic new energy vehicle sales face short-term pressure, export performance is strong. Combined with the ongoing rise in electrification rates for commercial vehicles, heavy trucks, and construction machinery, the installed volume of power batteries continues to grow year over year. According to data from the China Association of Automobile Manufacturers, in March 2026, exports of new energy vehicles reached 583,000 units, up 110% year over year. This boosted the cumulative year-over-year increase in power battery volume to 37.4%, reflecting that overseas demand and structural growth momentum are becoming the core support for the industry.

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