U.S. Markets closed

China’s breaking up the EV battery monopoly it carefully created

Echo Huang
China’s breaking up the EV battery monopoly it carefully created

As China phases out subsidies for electric vehicles next year, it’s also ending a related policy that effectively shut out foreign battery makers, creating the domestic monopoly we see today. China’s Ministry of Industry and Information Technology (MIIT) announced yesterday (June 25, link in Chinese) it is dropping its practice of publishing lists of battery makers that met technical standards. Supplying the information to get on the list was supposedly voluntary (link in Chinese), but in reality, using the batteries on the ministry’s lists made it more likely car makers would qualify for government subsidies.