<article><p class="lead">Chinese state-controlled refiner Sinopec has signed a strategic co-operation framework agreement with domestic property developer Evergrande Group to develop infrastructure for new energy vehicles (NEVs). </p><p>The two firms will carry out all-round co-operation in charging and battery exchange stations for NEVs, lightweight materials for vehicles and high-performance building chemical materials. </p><p>The move is in addition to a series of Sinopec energy transition projects. It signed a similar agreement in May with domestic automotive manufacturer Great Wall Holdings to <a href="https://metals.argusmedia.com/newsandanalysis/article/2214149">develop hydrogen energy</a>. </p><p>Sinopec is on target to build 1,000 hydrogen refuelling stations, 5,000 charging stations and power battery exchange stations and 7,000 distributed photovoltaic power stations by 2025. Sinopec in April announced a plan to achieve carbon neutrality by 2050, 10 years ahead of the national target. </p><p>The firm also in April signed another strategic co-operation agreement with NEV manufacturer Nio to build power battery exchange stations. It has also teamed up with solar manufacturer Longi Green Energy Technology to develop green hydrogen projects. </p><p>Evergrande has automobile manufacturing bases in Guangdong, Shanghai, Tianjin, Liaoning and Zhengzhou, with the first phase of the combined capacity designed to be over 1mn units/yr. It plans to set up several factories to produce power batteries with a combined capacity of 60GWh/yr over 10 years. The firm is to start pilot production of its first EV Hengchi 1 model in this year's final quarter with deliveries starting next year. </p><p>China's NEV output rose to 967,000 units during January-May, up by 224pc on a year earlier, with sales rising by 224pc to 950,000 units, according to data from the China Automotive Manufacturers Association. Domestic NEV industry has maintained its rapid growth since March 2020 when the country eased Covid-19 lockdown measures. The country announced last April that it will extend government subsidies on NEVs for two years to the end of 2022 and exempt the purchase tax on NEVs for 2021 and 2022. </p><p>China's sales of new energy passenger cars accounted for 47pc of global total sales of 1.39mn units during January-April, according to the secretary-general of the China Passenger Car Association Cui Dongshu. </p></article>
