China's January-November EV Output Exceeds 3mn

China's new energy vehicle (NEV) production and sales refreshed new highs in November, driven by the country's initiative to accelerate its transformation to a low-carbon society.

NEV output reached 457,000 in October, up sharply by 127.8pc from a year earlier and by 15.1pc from October, with sales also surging by 121.1pc on the year and by 17.3pc from October to 450,000 units, according to data from the China Automotive Manufacturers Association (CAAM).

China's NEV sales in November accounted for 17.8pc of its total vehicle sales, and 19.5pc of total passenger vehicle sales, CAAM data show.

NEV output and sales during January-November reached 3.023mn and 2.99mn units, up by 167.4pc and 166.8pc from a year earlier, respectively, with the share of NEVs reaching 12.7pc of the country's total vehicle sales during this period.

Beijing has announced a development plan for the NEV industry for 2021-35, targeting a 20pc share of NEVs in the country's total vehicle sales by 2025. Current rapid growth in the NEV market is expected to help achieve this target in advance, within the next two years. Beijing is also eyeing a 40pc share of NEVs in China's total vehicle sales by 2030, double from the target of 20pc by 2025, according to an action plan issued by the country's state council in October.

Buoyant demand from the NEV sector has boosted lithium and cobalt salt prices. Argus on 9 December assessed prices for 99.5pc grade carbonate and 56.5pc grade lithium hydroxide, the key raw materials in the production of lithium-ion batteries used in electric vehicles, at 215,000-225,000 yuan/t ($33,912-35,489/t) ex-works and Yn206,000-211,000/t ex-works respectively, the highest since Argus launched these assessments in 2016. Cobalt sulphate, another essential ingredient in battery production, was assessed at Yn93,500-96,500/t ex-works on 9 December, having risen by 68pc since the start of this year.