China has completely scrapped its list of recommended battery suppliers. This decision could open up the world’s biggest market for electric vehicle batteries, foreign companies believe. The list was initially launched in 2015.
Namely, Reuters reports that China has seen growing investment from South Korean battery makers, while expectations are high for China to change its policy.
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The list, which did not contain foreign companies when it was launched in 2015, was scrapped on June 21, under China’s management reforms.
Foreign firms were making complaints that the list was hurting competition and became linked to generous subsidies for recommended domestic companies.
Commenting on the new policy, an official at one foreign battery maker, stated that foreign companies are relieved, but they are not convinced yet that China is committed to abolish subsidies.
As for China, it has raised its standards for new energy vehicles (NEV) that qualify for subsidies. It also reduced the amount it aims to provide to these companies, as it looks to strip the sector off government support.
In fact, a rise in NEV sales has been halted the past months after having increased quickly in the past.
