context: As predicted, the state is adjusting subsidies to consolidate the new energy vehicle (NEV) industry and ensure that it is environmentally friendly.
Ministry of Finance (MoF), Ministry of Science and Technology (MoST) and National Development and Reform Commission's (NDRC's) ‘Notice on improving the fiscal subsidy policy regarding wider NEV-related applications’ raises the bar for firms to qualify for national subsidies, writes Caixin. Subsidies are no longer universal but selective and target high-end capacities in public NEV infrastructure, fuel cells, battery materials and key components. The plan raises pure EV's qualification thresholds, both for battery energy density and mileage, says the report. Subsidies for fuel cell vehicles remain unchanged. Fuel cell passenger cars subsidies are based on power categories and coaches have fixed quotas.
The state will build supervision platforms to tackle subsidy fraud and enhance third-party inspection, says the report. The plan also calls for clamping down on local protectionism and integrating the national market.
Ministry of Industry and IT's (MIIT) ‘Notice on interim management measures on NEV power battery recycling' makes power battery recycling quasi-mandatory, reports The Paper. The measures put responsibility primarily with NEV manufacturing enterprises, and calls for state subsidies, fiscal and financial support for repurchasing, trade-ins, echelon utilisation, reprocessing and other recycling activities.
A first batch of batteries will be discarded in 2018, and 350,000 tonnes of batteries will need to be recycled by 2025, insiders told The Paper. Lithium batteries are most common and have high recycling value economically and environmentally, argues the report. The market will reach C¥5 bn in 2018 and C¥10 bn after 2020, predict industry experts. Supervision should ensure the entire life cycle of fuel cells is traceable, argues the article, noting only two percent were recycled in 2015.