SHANGHAI, Jun 26 (SMM) – China will open its auto battery market to foreign suppliers by scrapping its list of recommended battery suppliers, as part of its efforts to wean the sector off government support.
The Ministry of Industry and Information Technology said on Monday June 24 that the Standards for Automobile Power Battery Industry, along with the list of 57 battery suppliers that meet the standards, was abolished from June 21.
The standards were first published in 2015, and the list did not include foreign leading battery-makers.
South Korea’s LG Chem said in January that it will invest 7.3 billion yuan to build battery production lines in the eastern city of Nanjing,
It also signed an agreement with China’s Geely to set up a joint venture to produce batteries for electric vehicles, according to the company’s statement earlier this month.
Lower government subsidies are also weighing on China’s electric vehicle sector. On June 26, the new scheme, which has raised the bar for electric cars that qualify for subsidies and reduced the amount it is willing to provide, took effect after a three-month grace period.
The subsidy cuts have slowed growth in new energy vehicle sales in recent months after rapid increases in past years.