China has published a list of EV models which are approved to receive state subsidies, including those using batteries made by South Korean firms batteries
China has released a new list of recommended clean energy vehicles. This would allow 185 car models to get government subsidies. Cheating in the government programme has prompted the Ministry of Industry and Information Technology (MIIT) to ask manufacturers to reapply for subsidies. In particular, electric bus manufacturers have been blamed for claiming generous subsidies, allegedly sums in excess of US$80,000, but producing far fewer vehicles than claimed.
The approved list includes cars from BAIC Motor Corp, BYD, Chery Automobile, Chongqing Changan Automobile and Geely Automobile Holdings, according to Reuters. More models are expected to be approved later this year.
According to ChinaDaily, subsidies will be limited to 44,000 yuan (US$6,333) for EVs with a driving range of 250 km and above.
Cars approved included some with ternary lithium-ion batteries. Such nickel, cobalt and manganese (NMC) batteries are made by – among others – South Korea’s LG Chem and Samsung Electronics. Cars using these batteries were ineligible last year, ostensibly because the firms’ Chinese factories had not been open longer than a year – a condition which was not communicated in the original certification documents.
The decision marks China’s efforts to begin to get a handle on the EV market. Some automakers believes that subsidies will be scaled back each year as production grows. Earlier this month BYD’s deputy chief of branding and public relations Li Yunfei told Reuters that: “By 2020, China will have no subsidies, but your scale has expanded, your costs have come down, and you’ll be able to hit a price that consumers can accept,” he said.