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China will adjust its subsidization scheme for electric vehicles to be launched in 2018, reducing or cancelling subsidies for entry-level models and increasing subsidies for high-end ones, according to China-based media reports.
In terms of driving range per charge, the current subsidy of CNY20,000 (US$3,030) for a vehicle with a range of 100-150km will be canceled and the CNY36,000 for one with 150-200km will be lowered to CNY20,000. And the 150-200km range will become the minimum requirement for subsidization, the reports said.
For powering batteries, the required minimum energy density is likely to be upward adjusted from 90Wh/kg currently to 95Wh/kg. According to China-based battery makers, the upward adjustment will negatively impact batteries with cathode material of lithium iron phosphate (LiFePO4) because it is difficult to hike such batteries’ energy density. But it will favor batteries with cathode materials of nickel-cobalt-aluminum (Ni-Co-Al) polymer or Ni-Co-Mn (manganese) polymer as well as solid-state batteries of which energy density is three times the level of lithium ion ones.
China-based electric vehicle makers indicated that the adjustment will affect about 70% of the electric vehicles for sale in the China market. The adjustment will cause changes in electric vehicle makers’ original plans to develop and produce models for launch in 2018.
The adjustment does not concern fuel-cell batteries.
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