Jul 06 2022
China has made adoption of electric vehicles a cornerstone of decarbonizing its transport sector. Despite headwinds such as removal of EV subsidies by year end and rising battery raw material prices, China's EV adoption rate is seen undented. An end to subsidies will not slow sales down as there are a broad range of models available at multiple price points supporting a wider adoption of EVs in the country, according to S&P Global Commodity Insights.
A switch to more competitively priced Lithium-Iron-Phosphate (LFP) batteries from the more common but expensive Nickel-Cobalt-Manganese (NCM) ones has further strengthened China's cost competitiveness and adoption trend despite soaring lithium prices.