Crossroads in China's Battery Manufacturing Industry: How Experienced Exporters Can Break Through the Cost Surge?

Since its establishment in 1998, China's dry battery manufacturing industry has been an indispensable part of the global supply chain. As a manufacturer with 25 years of export history, we have witnessed the transformation of Chinese batteries from "low price quantity" to "high quality and good price". However, 2024 is undoubtedly a highly challenging year for the industry, and we are standing at a critical crossroads.

The dual pressure of policy and cost

Recently, the industry is facing two major force majeure events. Firstly, the national export tax rebate policy has been adjusted: the export tax rebate rate for battery products has been lowered from 9% to 6%, and it is planned to be fully cancelled from January 1st next year. For enterprises that rely on exports, this means that for every $1 million worth of goods exported, there is a direct loss of $30000 to $90000 in profits. This is undoubtedly a heavy blow to the long-term low profit and high-volume battery OEM field.

Secondly, the drastic fluctuations in raw material prices have intensified the pressure of survival. Affected by international geopolitical tensions and supply chain restructuring, the prices of core raw materials for batteries such as zinc, manganese, and electrolytic manganese continue to rise. As a senior manufacturer with an annual export volume accounting for over 95% of production, we must face a reality: the era of relying solely on price advantages to seize global supermarket shelves is coming to an end.

Value reconstruction from "manufacturing" to "quality manufacturing"

Despite the intense short-term pain, we believe that this is not the end of the industry, but the beginning of a new round of reshuffling. Over the past 25 years, we have provided high-quality batteries to major supermarkets and distributors worldwide, accumulating solid quality control experience and production stability. When the price advantage is weakened by policies, the true manufacturing heritage becomes a moat.

Currently, we are adopting a dual strategy to address the challenges:

Cost transmission and customer sharing: Actively communicate with overseas customers and initiate a price negotiation mechanism based on the reality of rising raw material prices and cancellation of tax refunds. High quality products should not be undervalued for a long time. We are screening high-value customers and eliminating low-end orders that simply compare prices.

Digging inward for efficiency: relying on mature supply chain management, digesting some cost pressures through automation technology upgrades, ensuring that the quality stability of products in high-end markets such as the European Union and North America is not affected.

Looking ahead to the future

The 'low-cost carnival' of China's battery exports has come to an end. For companies like ours with 25 years of export experience, 2025 will be a watershed. Only manufacturers that can provide stable and high-quality products, have bargaining power, and can flexibly adjust market strategies can find new growth poles in the global demand for green energy and daily consumption.

We believe that after the pain, the surviving Chinese battery companies will be more resilient.

(About us: Directly supplied by the source factory, established in 1998, with exports exceeding 95%. We welcome global buyers to inquire directly and discuss long-term cooperation plans.)