In less than two decades, China has become the global leader in electric vehicles (EVs) and
batteries. This was achieved through a combination of strategic state planning, local government
experimentation, and entrepreneurial innovation.
Motivated by serious urban pollution, dependence on imported oil, and vulnerability to global
price shocks, China built a complete EV ecosystem—from lithium mining to auto assembly,
battery production, charging infrastructure, and end-of-life recycling. China now produces over
60% of the world’s EVs and dominates low-cost lithium-iron-phosphate (LFP) battery
technology and is on the verge of introducing even lower-cost sodium batteries.
While the future is still uncertain, China’s EV policies have positioned it to for leadership in the
“Electric Age”. This paper explores lessons and implications from the development, government
policies, and current state of the Chinese BEV industry.
