On August 27th, Cui Dongshu of the China Passenger Car Association highlighted in an article that the export prices of lithium batteries have been on a downward trajectory. Specifically, prices fell from 142,900 yuan in 2024 to 112,300 yuan in 2025, marking a 26% decrease, and further dropped to 105,000 yuan in 2026, representing an additional 11% decline. In July, the average export price of batteries from China stood at 106,000 yuan, a 3% year-on-year decrease. From April to July, following the reduction in tax rebates, the extent of battery price reductions improved significantly compared to the previous year. Recently, as the automotive market has expanded its production scale and the Producer Price Index (PPI) has risen, the cost of upstream lithium carbonate has increased. However, despite this, the export prices of lithium batteries have continued to decline, while domestic battery prices have surged. Automakers, who lack bargaining power due to their non-involvement in battery manufacturing, have witnessed a continuous decline in their profits. When combined with the downward trend in profit margins observed in previous years, it becomes evident that the profit decline in the automotive industry remains substantial. Despite the clear advantages offered by new energy policies, mainstream automakers still face significant profitability pressures. As the country steps up its efforts to combat excessive internal competition, profits in upstream industries are expected to improve. Nevertheless, the pressures on downstream automakers are likely to remain high.