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At that time, although Samsung and LG did not surpass Panasonic in battery performance, they were significantly higher than domestic manufacturers in several indicators such as energy density, consistency, and cycle life.

At that time, domestic manufacturers were still wavering in their technical direction. Except for CATL, most manufacturers were hoping for lithium iron phosphate because they felt that this technical direction was not valued by Japan and South Korea and was more likely to overtake on curves. But as the advantages of ternary lithium batteries gradually emerge, the disadvantages of lithium iron phosphate are amplified. Moreover, in order to seize the market, the two companies almost broke through costs in battery pricing.

When facing the crazy and powerful Samsung and LG, domestic manufacturers have almost no strength to fight back. As of 2015, six of the top 15 domestic passenger car companies in terms of shipment volume have reached preliminary supply agreements with Samsung SDI and LG, accounting for one-third of China's passenger car market.

However, the control of high-tech has never been just about commercial competition.

In 2016, the Ministry of Industry and Information Technology of the People's Republic of China announced the company catalog of "Standards and Conditions for the Automotive Power Battery Industry". Any vehicle model that does not use the battery products of the catalog company will not be eligible for national new energy subsidies.

Samsung and LG are naturally excluded from this directory.

As soon as the catalog was released, a group of downstream car manufacturers quickly understood the policy direction and turned to seek cooperation with domestic manufacturers, which saved domestic battery companies from death.

However, as mentioned earlier, new energy subsidies have shifted towards higher technological requirements and will be completely withdrawn by 2020. Some manufacturers that fail to meet technical requirements will gradually be eliminated and absorbed, and leading companies in the industry will face Japanese and Korean giants directly after subsidies disappear.

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