China's July EV output, sales hit new highs

China's new energy vehicle (NEV) production and sales refreshed record highs in July.

The country produced 284,000 NEVs in July, up by 170.8pc from a year earlier, with sales up by 164.4pc to 271,000 over the same period, according to data from the China Automotive Manufacturers Association (CAAM).

Total output rose to 1.504mn in January-July, up by 195.6pc on the year, with sales moving up by 197.1pc to 1.478mn units.

China has been accelerating development of NEVs to achieve its carbon-neutral targets by 2060. Beijing has extended government subsidies on NEVs for two years to the end of 2022 and exempted the purchase tax on NEVs for 2021-22.

CAAM forecasts the country's NEV sales will hit 2.4mn units in 2021 from an earlier prediction of 1.8mn units. This may boost demand for lithium-ion batteries and metal feedstocks.

Total output of power batteries rose to 74.7GWh during January-June, up by 217.5pc from a year earlier, with installed volumes increasing by 200.3pc to 52.5GWh over the same period, according to data from CAAM.

Strong demand from the NEV industry has bolstered lithium prices. Argus yesterday assessed prices for 99.5pc grade carbonate and 56.5pc grade lithium hydroxide, key materials in production of lithium-ion batteries used in electric vehicles, higher at 94,000-98,000 yuan/t ex-works and Yn108,000-113,000/t ex-works respectively.

China&#39;s NEV production and sales t Type 21-Jul Y-o-y &#177; % M-o-m &#177; % Jan-Jul&#39;21 Y-o-y &#177; % Total production 284,000 170.8 14.3 1,504,000 195.6 Pure-electric 232,000 180.0 13.7 1,260,000 220.0 Plug-in hybrids 52,000 150.0 20.9 244,000 110.0 Fuel-cell 32 360.0 -92.8 664 48.5 Total sales 271,000 164.4 5.8 1,478,000 197.1 Pure-electric 220,000 170.0 4.3 1,227,000 220.0 Plug-in hybrids 50,000 160.0 13.6 252,000 130.0 Fuel-cell 196 4,800.0 -27.9 675 47.7 Source: CAAM

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