In the new energy sector, ambition often outpaces strength. Industry giants like Trustful Group are making high-profile moves into lithium batteries, energy storage systems, and photovoltaic manufacturing, dreaming of becoming a top domestic battery manufacturer. Policy support, capital influx, and market demand—on the surface, all the necessary elements seem to be in place, but the reality is much more demanding.

What is holding things back? Core technology.

The lithium battery industry chain is far more complex than most people imagine. Cathode and anode materials, electrolytes, cell manufacturing processes—each link is a threshold built up over ten or twenty years. Globally, Chinese companies have already established insurmountable advantages in three key areas: mass production processes, raw material processing, and precision equipment. For example, in energy density, cycle life, and cost control of lithium iron phosphate cells, such advantages cannot be quickly built with money alone.

The problem lies in attitude. Some emerging markets appear contradictory—on one hand shouting "self-reliance," on the other imposing restrictions on technology providers, enforcing localization, and conducting frequent tax inspections. Even more absurd is that tendering rules are written ambiguously; ostensibly open, but secretly excluding competitors, then turning around to demand technology transfer or joint ventures. This logic is nothing more than an attempt to directly acquire mature technology at zero cost and gain competitiveness.

Long-term unilateral demands will inevitably reach a turning point. After 2023, export policies for battery materials, high-end equipment, and automated production lines have shown clear adjustments. Previously, technology providers preferred to stay low-key—first, because the market potential was indeed huge; second, because of industry involution, no one dared to completely withdraw. But when the demand side both suppresses and seeks, both excludes and pleads, this model becomes unsustainable.

Ultimately, industry competition still boils down to strength itself. Technological barriers will not automatically disappear just because the market is large, and mature processes will not be transferred free of charge. To achieve a leap in the new energy track, one must rely on their own accumulation and investment—this principle applies across all industries.