SHANGHAI, Sep 8 (SMM) – China sold 1.007 million NEVs in H1, up 220.9% year on year, becoming the world's largest NEVs market. The best-seller list include Hongguang Mini, Li Auto, BYD Han, Changan Benben and Tesla Model 3. Sales of Wuling Hongguang Mini registered 30,142 units in July.
The booming NEVs market benefits a lot from policy stimulus. The New Energy Vehicles Industry Development Plan (2021-2035) proposes that the average power consumption of new pure electric passenger vehicles will be reduced to 12 kWh/100 kilometers, the sales of new energy vehicles will reach about 20% of the total sales of new vehicles, and highly autonomous vehicles will achieve commercial in limited areas and specific scenarios. Pure EVs will become the mainstream of new sales vehicles by 2035, public vehicles will be fully electrified and fuel cell vehicles will be commercialised. Highly autonomous vehicles will be used on a large scale, effectively promoting energy conservation, emission reduction, and increasing social operating efficiency. The rapid growth of NEVs will directly drive the installed capacity of motive power batteries. The installed capacity of motive power batteries is expected to maintain a rapid growth of 32% from 2021 to 2025 and will reach 390GWh by 2025.
More battery plants planned to expand production amid the booming NEVs market. Guoxuan Hi-Tech, Farasis Energy, Sunwoda Electronic, Jiangsu Azure Corporation announced lithium battery expansion plans in August.
Downstream battery plants have placed orders to upstream producers to ensure raw materials supply amid rising battery projects. BYD signed an agreement with YanAn Bicon Pharmaceutical, Guangdong Tonze Electric and Do-fluoride New Materials to ensure the supply of lithium hexafluorophosphate products. Zhejiang Hangke Technology received the bid-winning notice sent by BYD on September 3, with a total bid of 522 million yuan for lithium battery equipment.