The hot new energy vehicle market is a double-edged sword for power battery. On the one hand, it gives power battery enterprises unprecedented opportunities for development, and on the other hand, it relentlessly squeezes power batteries, requiring that the energy density of power batteries continue to increase, the range continues to increase, but the price continues to fall. With the sharp decline of subsidies year by year, vehicle manufacturers also began to transfer part of the cost pressure to power battery enterprises.

Looking at the Q3 performance of power battery enterprises this year, it is not difficult to find that many battery enterprises with small market shares are in trouble, and battery enterprises such as Waterma, Mengshi Technology and Rongjie Shares have all suffered substantial losses.

On the other hand, as of September this year, the output of the top ten enterprises in China's power battery industry had reached 91.4%, and the market was further concentrated in leading enterprises, among which the performance of leading enterprises such as Ningde Times and BYD increased significantly.

Data shows that the number of power battery supporting enterprises in China has dropped from about 150 in 2015 to about 100 in 2017, and one-third of them have been eliminated. More enterprises will be eliminated in the future, especially small and medium-sized low-level power battery enterprises are facing the pressure of rapid elimination.