Chinese carmaker BAIC Group and US-owned Chinese battery firm Funeng Technology (Ganzhou) are to invest a total of CNY10 billion ($1.2bn) to launch a batteries plant for new energy vehicles in Shunyi, Bejing.
The Shunyi district government said it has given the go-ahead for BAIC and Funeng to manufacture battery cells and battery packs with an annual production capacity of 8GWh.
One of China’s largest state-owned carmakers has stopped production of a sports utility model following a ruling by Beijing that EV batteries must meet certain criteria before they attract State subsidies.
JAC Motors has stopped production of its iEV6s electric sports utility vehicle (SUV), which had been powered by Samsung SDI’s batteries, exclusively chosen by the carmaker.
Korean battery giants Samsung SDI and LG Chem saw shares slump by 10% and 7.1% respectively on news that Beijing will remove subsidies for nickel manganese cobalt (NMC) batteries for electric buses.
“There has not been enough safety verification or product development for new energy electric passenger vehicles,” said China’s Ministry of Equipment Industry Secretary Zhang Xiangmu, who added China had begun research into the chemistry late and could ‘not be sure’ about NMC batteries.
The decision has surprised some.