System Operator

China wants to be the largest producer of electric vehicles

China wants to be the largest producer of electric vehicles and lithium ion batteries. China will launch a plan for industrial development of electric cars and renewable energy to lead the industry in the next 10 years, with a government fund of 15,280 million dollars. Under the plan, which focuses on electric car, China seeks a leadership position with sales of 5 million electric vehicles by 2020.

In addition, to promote the development of key technologies and ensure a sustainable future for the sector, the central government will establish a total of five businesses to produce lithium batteries and electric motors for 2015. China wants to reduce the price of batteries for electric cars to 2 yuan per watt hour by 2015 and 1.5 yuan for 2020, as part of a stimulus plan for the electric car industry.

Given the production costs of electric vehicles depends primarily on lithium ion batteries, by 2012 China will have 100,000 electric cars, which will result in a lithium battery industry with a business of 6,000 million yuan.