Foreign media: Lithium iron phosphate batteries are revived again, and Chinese battery companies are at the forefront of the industry

First of all, in terms of technology, the incentives of the free market do not seem to have played the role they should. In 2019, the European Union approved 3.2 billion euros (about 23.044 billion yuan) of state aid to support the development of electric vehicle technology, and another 2.9 billion euros (about 2.088 billion yuan) at the beginning of this year. But the authorities only focus on the amount of money invested, not the type of technology or projects they fund.

Secondly, the huge supply chain and manufacturing facilities required to expand the scale of the industry have also been ignored by Western authorities. Therefore, many automakers that hope to lead the electric market can only expand their supply chains on their own. Toyota recently announced an investment of US$13.7 billion (approximately RMB 83.748 billion) in batteries; Volkswagen CEO Diess also said that due to factors such as battery supply and factory capacity, the pressure on Volkswagen's electrification transformation is gradually increasing; BMW has also increased its battery orders to more than 20 billion euros (approximately RMB 127.516 billion).

South Korea and Japan, the two countries that initially had a leading position in technology, have temporarily lost in terms of battery costs. As a result, more and more automakers are now highly dependent on China's battery supply chain and turning to lithium iron phosphate batteries.

Conclusion: China's battery industry will maintain its leading position in the next decade

Last year, China's Ministry of Industry and Information Technology set safety standards for used battery packs. This year, China has begun regulating battery recycling, with an estimated 420,000 tons to be recycled by 2022 as the number of electric vehicles increases.

While China is not a battery technology pioneer, nor does it yet have the world’s best electric car or even an internationally recognized brand, it has made steady progress.

With the healthy cooperation between the authorities and Chinese private battery manufacturing companies, China will be at the forefront of the global battery industry in the next decade.