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Why are storage prices still rising, but storage stocks have already fallen? Because the stock market looks further ahead. Everyone basically knows how high the profits are today; the biggest controversy now is whether there will be an oversupply in two to three years. This scenario has already played out once in the last round of new energy vehicles. In 2021, demand for new energy vehicles exploded, global lithium mine supply couldn't keep up, and battery-grade lithium carbonate prices rose from about ¥60,000/ton to nearly ¥600,000/ton, increasing nearly 10 times in two years. In the industry chain, whoever is the scarcest gets the profits concentrated there first. Lithium mining companies made huge profits, while battery manufacturers and car companies had to bear increasingly high raw material costs. In 2022, CATL's gross margin once dropped from nearly 28% to about 15%, simply because lithium prices rose too fast and battery price increases couldn't keep up. High profits quickly attracted a lot of capital. Mine expansions, rising capital expenditures, and increasing long-term purchase agreements. The market also began to worry whether lithium would still be so scarce when these new capacities come online in two to three years. Therefore, lithium mining stocks often start to fall before lithium prices actually peak. When lithium carbonate prices plummeted in 2023, many thought car manufacturers could finally turn all cost reductions into profits. But the auto industry immediately entered a price war. Tesla cut prices, BYD followed, and more brands competed for market share. Batteries did get cheaper, but the saved money did not all stay with the car manufacturers; a large part eventually turned into lower car prices. Raw material cost reductions and downstream profit improvements are separated by industry competition dynamics. $PI