China targets 20pc NEV share by 2025: Correction

Spanish Market: Metals, Oil products
06/11/20

Corrects target date in headline, first paragraph

China's state council has announced a development plan for the new energy vehicle (NEV) industry during 2021-35, targeting a 20pc share of NEVs in the country's total vehicles sales by 2025.

China aims to lower the average power consumption of a new battery electric passenger car to 12kWh/km by 2025, according to the plan, which also makes clear the country's ambitions to fully electrify public vehicles, commercialise fuel cell vehicles and realise the scale application of highly autonomous vehicles.

Battery electric vehicles (EVs) by 2035 will become the mainstay of new vehicle sales in the country, the plan said.

The government also wants to strengthen innovations to improve the industry's infrastructure of key components such as power batteries and new generation automotive motors, while promoting integration and a co-ordinated development of electric, network and intelligent technologies.

The plan is also designed to accelerate the development and application of automotive operating systems, build an efficient power battery recycling system and speed up the development of infrastructure such as power and hydrogen charging and battery replacing facilities.

The plan calls for the merger and reorganisation of competitive enterprises to strengthen industry integration. The government will implement preferential tax policies for NEVs, optimise traffic management and financial services, provide financial support for building charging points as public facilities, while providing preferential policies for parking and charging of NEVs.

The government is aiming for at least 80pc of NEVs by next year to be used in areas such as public transport, taxi services and logistics in the country's "ecological civilisation" pilot zones and key areas for air pollution prevention and control.

The plan comes after Beijing announced new development plans for strategic industries, including EVs, new energy resources and technology infrastructure, in response to the impact of the Covid-19 economic downturn and trade tensions with the US.

Chinese NEV output totalled 738,000 during January-September, down by 18.7pc from a year earlier. Sales fell by 17.7pc to 734,000, with higher output in recent months outweighed by the overall impact from the Covid-19 pandemic.

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

16/05/25

US House panel votes down Republican megabill

Washington, 16 May (Argus) — A key committee in the US House of Representatives voted today to reject a massive budget bill backed by President Donald Trump, as far-right conservatives demanded deeper cuts to clean energy tax credits and social spending programs. The House Budget Committee failed to pass the budget reconciliation bill in a 16-21 vote, with four House Freedom Caucus members — Ralph Norman (R-South Carolina), Chip Roy (R-Texas), Josh Brecheen (R-Oklahoma) and Andrew Clyde (R-Georgia) — voting no alongside Democrats. A fifth Republican voted no for procedural reasons. The failed vote will force Republicans to consider major changes to the bill before it comes up for a vote on the House floor as early as next week. Republican holdouts say the bill would fall short of their party's promises to cut the deficit, particularly because it would front-load increased spending and back-load cuts. The bill is set to add $3.3 trillion to the deficit, or $5.2 trillion if temporary provisions were permanent, according to estimates from the nonpartisan Committee for a Responsible Federal Budget. Some critics of the bill said the proposed cut of $560bn in clean energy tax credits is not enough, because the bill would retain some tax credits for new wind and solar projects. "A lot of these credits have been in existence for 30 or 40 years, and you talk about giveaways, we want to help those who really need help," Norman said ahead of his no vote. "That's the heart of this. Sadly, I'm a no until we get this ironed out." Negotiations will fall to House speaker Mike Johnson (R-Louisiana), who can only lose three votes when the bill comes up for a vote by the full House. But stripping away more of the energy tax credits enacted in the Inflation Reduction Act could end up costing Johnson votes among moderates. More than a dozen Republicans on 14 May asked to pare back newly proposed restrictions on the remaining clean energy tax credits. Ahead of the failed vote, Trump had pushed Republicans to support what he calls the "Big Beautiful Bill". In a social media post, he said "Republicans MUST UNITE" in support of the bill and said the party did not need "GRANDSTANDERS". The failed vote has parallels to the struggles that Democrats had in 2021 before the implosion of their push to pass their sprawling "Build Back Better" bill, which was later revived as the Inflation Reduction Act. Republicans say they will work over the weekend on a compromise. The House Budget Committee has scheduled another hearing at 10pm on 18 May to attempt to vote again on the budget package, but any changes to the measure would occur later, through an amendment released before the bill comes up for a vote on the House floor. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Deere sees paying $500mn in US tariffs through Oct

16/05/25

Deere sees paying $500mn in US tariffs through Oct

Houston, 16 May (Argus) — Heavy equipment manufacturer John Deere expects US import tariffs to cost the company $500mn in the fiscal year that ends in October. The Illinois-based company paid roughly $100mn in tariffs in its fiscal second quarter, which ended 27 April. It expects to pay the US government another $400mn in tariffs during the second half of its fiscal year, executives said Thursday on an earnings call. Deere plans to recoup its tariff costs through a combination of charging higher prices and reducing its costs, chief financial officer Joshua Jepsen said. Tariffs also are expected to contribute to lower demand for tractors and other farm equipment produced by Deere. Large agricultural equipment sales across the industry are projected to fall by 30pc in the US and Canada in 2025 due to trade uncertainty and high interest rates, Deere said. Deere domestically produces 79pc of the completed goods it sells in the US, and 76pc of the components used at its domestic facilities are sourced from US-based suppliers. The company is prepared to invest $20bn to expand its domestic manufacturing over the next decade, chief executive John May said. The company imports 10pc of the components used in its US plants from Mexico and has begun qualifying its products for exemptions under the US-Mexico-Canada free trade agreement (USMCA) to mitigate the impact of tariffs. US sales of the company's roadbuilding machinery are subject to the US' 10pc global import tariff rate, as the equipment is predominantly made in Germany. The company reduced the low end of its profit forecast for the fiscal year to $4.75bn-$5.5bn, down from $5bn-$5.5bn. John Deere's second-quarter profit fell to $1.8bn, down by 24pc compared with the year-prior period. By Jenna Baer Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Liberty cancels Speciality Steel restructuring plan

16/05/25

Liberty cancels Speciality Steel restructuring plan

London, 16 May (Argus) — Liberty Steel has cancelled the restructuring plan for its Speciality Steel business in the UK. Liberty axed the plan as it was not going to receive sufficient creditor support to approve it, sources at the company said. Greensill creditors, and a majority of other plan creditors, had voiced their opposition to the restructuring in recent court proceedings. A sanction hearing to approve or reject the plan had been scheduled for 15-16 May, but that has now been cancelled as a result. The winding up petition by major creditor Harsco is scheduled to be heard on 21 May, so there is a risk the company could now be wound up if not placed into administration. In a note to creditors obtained by Argus , Liberty said it will "consult with UK government" and other stakeholders ahead of the petition. "The court's ability to sanction the [restructuring] plan depended on finalisation of an agreement with creditors," a company spokesperson told Argus . "This has not proved possible in an acceptable timeframe and so Liberty decided to withdraw the plan ahead of the sanction hearing on 15 May and will now quickly consider alternative options." The company remains "committed to doing all it can" to maintain the business, he said. The Speciality business has operated at a tiny fraction of its nameplate capacity in recent years, along with all of Liberty's operations in the UK, some of which have been technically mothballed already. Some sources have suggested the government could take control of Speciality Steel, as it has with British Steel, citing synergies between the two plants. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Lynas produces separated heavy rare earths in Malaysia

16/05/25

Lynas produces separated heavy rare earths in Malaysia

Sydney, 16 May (Argus) — Australian mineral firm Lynas Rare Earths has produced separated dysprosium at its Malaysian rare earths plant, becoming the first producer of separated heavy rare earths outside China. But Lynas today declined to comment on the volume of dysprosium produced at the plant. The company built dysprosium and terbium processing circuits , capable of separating up to 1,500 t/yr of heavy rare earths, at its Malaysian plant in January-March. It will start producing separated terbium at the site next month. The circuits will allow Lynas to eventually expand its heavy rare earth production line to include separated dysprosium, terbium, and holmium concentrate, as well as unseparated samarium/europium/gadolinium and unseparated mixed heavy rare earths. The company's first production of dysprosium comes less than a month after some Chinese rare earth suppliers limited offers for rare earth minerals , including dysprosium and terbium, in response to the Chinese government tightening export controls. The company produced 1,911t of rare earth oxides in January-March, including 1,509t of NdPr oxide, down by 46pc on the year because of improvement and maintenance works in Malaysia and WA. The company is also developing another rare earth plant in Texas with US government support . The plant will produce separated heavy and light rare earths. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Sherritt 1Q nickel, cobalt production dips

15/05/25

Sherritt 1Q nickel, cobalt production dips

Houston, 15 May (Argus) — Canadian miner Sherritt International said it produced less nickel and cobalt in the first quarter from a year earlier but expects to boost production in the second half of 2025. Sherritt's nickel production dropped by 18pc to 2,947 tonnes (t) and cobalt production decreased by 6pc to 323t from the same quarter last year. In February, the company raised its nickel and cobalt guidance for 2025, which remains unchanged despite lower first quarter production. Operations at the company's Moa nickel and cobalt project in Cuba has faced increased pressure from US sanctions, according to Sherritt chief executive Leon Binedell. Sherritt started the second phase of an expansion project at Moa, which the company expects to ramp-up in the second half of the year to full capacity. The company expects higher average realized cobalt price in the second quarter. In the first quarter, the company's average realized price for nickel rose by 1pc to C$9.98/lb while cobalt fell by 8pc to C$13.29/lb compared to the first quarter of 2024. Sherritt sold 3,439t of nickel in the quarter, down 15pc from a year earlier, while cobalt sales were up 26pc to 456t. Demand drove sales above production volumes, according to the company. Sherritt reported a C$40.6mn loss in the first quarter, slightly down from the C$40.5mn loss in the first quarter of 2024. Revenue rose 33pc to C$38.4mn. By Reagan Patrowicz Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more