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In 2017, many people in the power lithium battery industry saw it as a year of industry reshuffle.

Under government subsidies, the domestic new energy vehicle industry has experienced explosive growth in recent years, becoming the world's largest new energy vehicle market. The battery industry, the core component of new energy vehicles, has also seen a rapid rise. According to the "Development Report of China's New Energy Vehicle Industry" released by the China Automotive Research Center, in 2016, the total amount of power lithium batteries for new energy vehicles in China reached 28.14 billion WH (watt hours), with an absolute leading industrial scale. Among the top ten companies in the global power lithium battery shipment volume, seven are Chinese companies.

In China, the new energy vehicle industry is still a significantly affected industry by policies, and the battery industry pattern is also affected accordingly. Starting from the acceleration in 2014, it broke out in 2015, and then swayed by the impact of fraud and verification in 2016. The industry waited for nearly a year for a new subsidy policy to be released at the end of 2016, with a clear trend of subsidy decline. The battery industry subsequently experienced a shortage of production in 2015, a significant expansion of production in 2016, and a competitive pattern of structural surplus in 2017.

In the first quarter of this year, due to changes in subsidy policies, there was a rare downward trend in the production and sales of new energy vehicles. However, the overall trend has not changed, and it has gradually returned to normal since the second quarter. The latest statement by officials from the Ministry of Industry and Information Technology regarding the timetable for the withdrawal of fuel vehicles from the market, has made the market optimistic about the future prospects.

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