© Reuters. The employees work on the production line of Hefei Octillion Electric Vehicle (EV) Battery Manufacturer
HEIFE, China (Reuters) – China’s push toward carbon neutrality coupled with its growing manufacturing of electric cars (EV) could allow it to compete on par with standard cars by 2030 and push the sector to new heights, the head of a leading Chinese electric battery maker said.
“It’s clear that the cost of the battery is the main driver,” said Peng Chu, CEO of Octillion Power Systems, a lithium-ion battery supplier based in Hefei, Anhui Province. “Economies of scale alone, combined with innovation, will be sufficient to reach the parity line by 2030.”
China, the world’s largest producer of greenhouse gases, aims to peak emissions before 2030 and become carbon neutral by 2060.
Stricter emissions standards, more competitive electric vehicle models, and a national commitment to curbing greenhouse gas emissions are factors driving growth into growth, Zhu said, as his company designs and builds custom battery modules for automakers and calculates Total and Softbank (OTC 🙂 And Samsung (KS 🙂 among its shareholders.
“We assume that a carbon peak will happen and that carbon neutrality will happen, and this drives the entire sector,” he said.
The company supplied 10% of the country’s electric vehicle market in the second half of 2020, and aims to increase production capacity from 1.4 gigawatt hours last year to more than 22 gigawatt hours by 2025. It shipped 95,191 units in 2020, up from 24,844 a year ago.
It also aims to diversify geographically and build on existing businesses in Brazil, India and North America.
Environmental groups have warned that the boom in electric vehicle ownership will lead to an increase in battery waste. Chinese cities responded to the challenge by putting in place recycling plans.
The batteries contain rare resources like nickel and cobalt, Chu said, and he was not worried about an impending “pollution nightmare”.
“With absolute economics, there is money to be made to get everything back,” he said. “I don’t think people are going to throw them away or randomly throw them somewhere because there is value there.”
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