On July 3, Tinci Materials released a statement indicating that, since the latter half of 2023, both established leaders and newcomers in the electrolyte sector have been aggressively ramping up production. Concurrently, downstream demand has not met forecasts, leading to a significant imbalance between supply and demand in terms of production capacity. This has fueled intense competition within the industry and caused a persistent downturn in market prices, thereby squeezing the profit margins of the sector. Considering the underutilization of existing electrolyte production capacity and the shifting market landscape in the fluorine chemicals industry, the company has made the strategic decision to discontinue its investment and halt construction of the Nantong Tinci project, which was planned to produce 243,000 tons of lithium battery and fluorine-based new materials annually.