The rapid growth the electric car sales have increased the demand for lithium batteries tremendously and promote more investment in the industry.

Anbound's senior researcher, He Jun, is of the view that the development in electric car will drive the development in the lithium battery industry.

However, it is worrying that the investors have seen the focal point of the policy and a large scale of low quality investment will soon cause vicious competition. This coupled with the intervention of the capital market will force the enterprises to focus on short term return and as a result of which, it is very difficult to nurture companies with research and innovation capacity. The research and manufacturing of the battery requires and involves the application of basic, fundamental research which requires the participation of the universities and research institutes.