China's new energy policy in recent years has attracted global attention, the Financial Times reported. In the competitive lithium battery market, China is becoming the dominant country.

Recently, the Chinese government called on domestic battery companies to double the capacity of electric vehicle batteries by 2020, encouraging them to invest in overseas factories, the report said. As automakers invest more in electric vehicles, lithium-ion batteries will be a key technology for at least the next 10 years, creating a huge market.

By 2025, Goldman estimates, the market will be worth $40 billion and dominated by China.

In 2013, China surpassed South Korea as the world's largest supplier of lithium batteries for electronic devices, according to Goldman Sachs. A year later, as China's electric vehicle market began to take off, this leading advantage further expanded. In 2016, China sold 507000 pure electric and plug-in hybrid vehicles, an increase of 50% over the previous year.

As for the rapid development of lithium battery scale in China, Duncan Goodwin, head of global resources equities of baring fund management company, commented that "the Japanese invented it, the Koreans sought to expand the production scale, and the Chinese finally occupied the leading position, because the market was ultimately in China."

The reason why lithium batteries in China can catch up is mainly due to price.

For foreign battery manufacturers, they are more worried than not getting subsidies or encountering obstacles, according to the analysis of the report. It is the biggest advantage of Chinese battery manufacturers compared with competitors such as Tesla: access to raw materials. In the past year, Chinese companies have sold lithium-ion supply chain successively, buying mining assets such as cobalt and lithium to reduce costs.