From providing subsidies to restricting foreign competitors, with the support of government policies, China's battery enterprises have begun to dominate the industry led by Korea and Japan for the past 30 years.

The fastest growing battery manufacturer in China -- the headquarters of new energy Polytron Technologies Inc (CATL) in Ningde era, is located on the edge of Ningde city. Not far from here is fish ponds and a street. The street is full of cheap noodle shops and repair shops frequented by migrant workers. Inside this huge factory, the battery parts move silently on the automatic conveyor belt. The slogans on the wall encourage workers not to waste material and time, and not to be addicted to "unnecessary bending" for their safety.

The factory looks no different from a large number of factories across China. But the $11 billion 500 million valuation of the company is not the common people. It will become a national champion enterprise, equivalent to China's Panasonic (Panasonic), and become a key part of Beijing's ambitious plan, aiming to rewrite the global battery market layout and make use of the growing demand from electric vehicles.

"We want to be a leading enterprise, like the head of the whole supply chain," said Yang Qi (Neill Yang), director of marketing at CATL. His office overlooks a number of cranes and concrete mixers, which are building dormitories and office buildings that can accommodate 20 thousand employees.

According to Goldman Sachs (Goldman Sachs) data, last year's CATL battery capacity of 7.6 GWH (GWh). The company said it plans to increase its capacity to more than gigafactory, Tesla Motors and Panasonic joint venture by 2020. It will be put into operation in Nevada in January of this year, and is expected to become the largest battery manufacturer in the US. That will make it possible for the CATL to become the largest battery enterprise in the world.

In the radical policy -- from the government subsidies to limit foreign competitors for the electric vehicle support, China battery enterprises are beginning to dominate the industry, and the industry in the past 30 years has been from South Korea and Japan battery manufacturers (such as Tesla Motors manufacturing power batteries Panasonic) lead.

Not long ago, the Chinese government called on domestic battery companies to double the capacity of electric car batteries by 2020 and encourage them to invest in factories abroad. As automakers increase their investment in electric vehicles, lithium ion batteries will be a key technology in the next 10 years, creating a huge market. According to Goldman Sachs, the market will be worth $40 billion by 2025 and will be led by China.

"It's not easy to go beyond Japan and South Korea," Yang Qi said. "But we think that in the next 10 years, there will be only 10 lithium battery manufacturers left. The strongest 3 will occupy 60% of the market."

Since 2012, China has been spending billions of yuan to subsidize domestic electric vehicle manufacturers, making Shenzhen based BYD (BYD) the world's largest electric vehicle and bus manufacturer, with a market value of 18 billion 700 million dollars. The Berkhire Hathaway Inc (Berkshire Hathaway) of Warren Buffett (Warren Buffett) owns about 10% of BYD. While boosting supply, China is also creating demand: by 2020, electric vehicles are expected to increase from the current 1 million to 5 million.

The strategy of developing the battery industry in China reminds us of the road to the development of the solar power industry in China 10 years ago. McKinsey (McKinsey) - former chairman of Asia Europe Gordon (Gordon Orr) said, China by reducing costs and prices fell 70%, leading the solar power industry, now in the field of batteries may also make these achievements. This will make the ev more competitive (the battery cost up to half of the total cost of the electric vehicle), but this may also mean that the battery manufacturers in other parts of Asia, the US and Europe will lose a lot of market share.

"We know the end of the solar industry. China got the final results it wants, but this process is accompanied by the huge value destroyed, "Gordon orr said," I do see the battery industry is embarked on the same path characteristics, but can't predict the CATL or other enterprises can have the last laugh."

For each electronic device

Since the commercialization of lithium ion batteries by SONY (Sony) in 1981, the battery has completely changed the consumer electronics market. From Walkman to iPhone, they become the central components of all electronic devices in everyday life. Now, they are bound to play an equally important role in the field of transportation to help people reduce their dependence on oil.

Since the 80s of last century, the battery production in the electronics industry has been dominated by Korean and Japanese companies, but China has come up. In 2013, China surpassed South Korea and became the world's largest supplier of lithium batteries for electronic devices, according to Goldman Sachs. A year later, as the electric vehicle market in China began to take off, this leading advantage was further expanded. In 2016, China sold 507 thousand pure electric and plug - in hybrid cars, up 50% over the previous year.

Data compiled by Research Institute Bernstein (Bernstein) show that although Matsushita is still the world's largest supplier of electric vehicle batteries, China's BYD and CATL are following.