China cuts subsidy for NEVs; CICC expects this to boost lithium-ion battery materials sales

According to a recent update from Shanghai Metals Market, China, on March 26, announced its plan to cut subsidies for new energy vehicles (NEVs), in a bid to encourage innovation and promote high-quality development of NEVs.

The Ministry of Finance, Ministry of Industry and Information Technology (MIIT), Ministry of Science and Technology, and Development and Reform Commission jointly released a document that says the national subsidy for pure electric passenger cars with a driving range of 400 kilometres and above will be reduced to RMB 25,000 per unit. NEVs with a range below 250 kilometres, on the other hand, will not get any subsidy, according to the document.

MIIT also updated on its website that around seventy-two models of NEVs are removed from the catalogue of cars exempt from vehicle purchase tax.

SMM update there is a transition period from March 26 to June 25 for local government subsidies. During the period, NEVs meeting the technical standards for 2019 will receive 60 per cent of 2018’s local government subsidies, while electric cars below the technical standards for 2019 will get only 10 per cent. Fuel cell vehicles will get a subsidy of 80 per cent during the period.

After the three-month period of transition, local governments will stop the subsidies for NEVs purchase. They will rather use the funds for the improvement of charging facilities and other supporting services.

The research department of China International Capital Corporation (CICC) expects that this movement towards the quality development of NEVs will boost the sales of lithium-ion battery materials by over 30 per cent in 2019.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.