CICC expects electric car subsidy cuts to lift sales of Li-ion battery materials

SHANGHAI, Mar 27 (SMM) – The research department of China International Capital Corporation (CICC) expects sales of lithium-ion battery materials to grow over 30% in 2019, bolstered by the government's push for a "high-quality development of a new-energy automobile industry".

Chinese authorities said on Tuesday March 26 that it will further scale back subsidies on electric vehicles this year, with a three-month grace period that will end on June 25.

CICC believes the new subsidy scheme will facilitate stable growth of the industry.

Sales of new-energy vehicles are expected to climb 20% from 2018 to stand at 1.53 million units in 2019, the investment banking firm estimates.

Automakers rushing out EVs during the grace period, CICC said, will also contribute to the growth in demand for lithium-ion battery materials.