A “Company Shutdown, Employee Leave and Training Notice” issued by Jiewei Power is circulating on the internet. The notice states that due to objective factors such as market conditions and the upstream and downstream industry chain, in order to ensure the sustainable development of the company’s business, after research and decision-making by management, Tianjin Jiewei will begin a shutdown from December 1st, 2023. This shutdown reflects the reality of excess capacity in power and energy storage batteries. According to data recently disclosed by Gao Gong Industrial Research Institute, the utilization rate of power batteries has decreased from over 75% in 2022 to an average of less than 65% this year, while the utilization rate of energy storage battery capacity has dropped from over 85% last year to less than 55% this year.