Rare Earth Demand to Benefit as China Unveils New Policy for New Energy Car

SHANGHAI, Oct. 14 (SMM) – Rare earth demand will grow as the Chinese government recently unveiled new policy stimulus targeting new energy car market, www.cre.net reported. 

Insufficient charging networks is one of the major bottlenecks that has long hampered development of new energy vehicle market.

The Chinese government issued a guidance on its official website on October 9 that urges acceleration in construction of charging facility for electric vehicles. Under the guidance, charging facility must satisfy over 5 million electric vehicles by 2020; at least one public charging station must be built for each 2000 electric vehicles. The guidance also sets requirement on the ratio of charging facility in newly built residential area and public area. 

Permanent magnet motors and motive batteries made of rare earth are important parts of new energy vehicles. Now that the bottleneck has been lifted, rare earth demand will get a great boost.     

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