Energy Insider: China’s NEV Sales Hit Record, Local Governments Flock to Rooftop Solar
In today’s Caixin energy news wrap: China’s NEV sales hit record high; Qinghai Salt Lake unit hooks up with BYD for battery project; and domestic coal prices are set for a short-term skid.
China’s NEV sales hit record high in July
China’s market for new energy vehicles (NEV) is booming, according to the Ministry of Commerce. Both the production and sales of NEVs in July set new monthly records, with output surging 170% year-on-year to 284,000 units and sales jumping 160% to 271,000 units. In contrast, overall auto sales fell 11.9% year-on-year. In the January-July period, sales of NEVs — which include vehicles powered by battery, plug-in hybrids, and hydrogen fuel cells — tripled from a year earlier to nearly 1.48 million units, surpassing sales for the whole of 2020. NEVs have also raised their share of China’s total vehicle exports.
Qinghai Salt Lake unit hooks up with BYD for battery project
Qinghai Salt Lake Industry Co. Ltd. (000792.SZ) said the company indirectly holds a 51.42% stake in Qinghai Salt Lake Fozhao Lanke Lithium Co. Ltd., a battery producer with an annual production capacity of 10,000 tons of industrial-grade lithium carbonate and 20,000 tons of battery-grade lithium carbonate. Salt Lake is also working with major Chinese electric-vehicle maker BYD Co. Ltd. on a project to build a facility capable of producing 30,000 tons of battery-grade lithium carbonate.
Local governments flock to rooftop solar installation pilot
A total of 25 provincial-level governments have submitted plans to trial installations of rooftop distributed photovoltaic (PV) devices after a National Energy Administration document on June 20 put out a call for participants in a pilot program to promote rooftop solar power. Around 20 counties in each region want to take part, the Shanghai Securities News reported. It’s estimated that this will involve around 500 projects in total with a combined installation capacity in excess of 100 gigawatts.
Coal prices to fall short term, report says
Coal prices in China are expected to suffer a short-term drop, with demand showing signs of a seasonal slowdown as the country emerges from a period of peak summer demand, analysts at Anxin Securities Co. Ltd. wrote in a report. On the supply side, the suspension of mining operations in some areas due to overproduction and environmental concerns has offset the increase in production from the resumption of operations at suspended coal mines in Ordos in North China’s Inner Mongolia autonomous region.
LNG prices continue upward trend on strong demand
China’s liquefied natural gas (LNG) prices continued to trend upward on firm demand. The LNG index came in at 5,462 yuan ($843) per ton on Friday, up 113.9% from a year earlier, according to the Shanghai Petroleum and Natural Gas Exchange (SHPGX), a national oil and gas trading center. The persistence of high prices in the off-season is raising concerns that supply may not increase quickly enough to keep pace with demand and that prices will rise even more in the peak season. Overall, gas prices are expected to fluctuate at a high level on firm demand, but the country should be able to avoid a repeat of the surge in prices seen last year if the industry makes adequate preparations.
Guizhou cuts first-half electricity costs for industry by nearly 3 billion yuan
Market-oriented reforms to Guizhou province’s industrial electricity sector and the implementation of national measures to cut the cost of power saved industrial users nearly 3 billion yuan in the first half of the year, the state-run Xinhua News Agency reported. That’s despite a 28.9% jump in the volume of electricity transacted through the market, amounting to 31.7 billion kilowatt-hours (kWh).
Sino-Platinum Metals faces ownership change as SASAC approves stake transfer
Sino-Platinum Metals Co. Ltd. (600459.SH) announced that the State-owned Assets Supervision and Administration Commission (SASAC) of Yunnan province approved the transfer of a 39.6% stake held by Sino-Precious Metals Holding Co. Ltd. to Yunnan Investment Group. The move may lead to a change in Sino-Platinum Metals’ controlling shareholder.
Yunnan Tin’s net profit surges on price increases
Yunnan Tin Co. Ltd. (000960.SZ) reported a net profit of 960 million yuan in the first half, a year-on-year increase of 375%, while revenue rose 30.9% to 29.46 billion yuan. The company attributed the improvement to surging prices of commodities such as tin, zinc and copper, as demand was fueled by the global economic recovery and loose monetary policies in some major developed economies.
Real estate licenses revoked in Kunming beauty spot
Local environmental and rectification watchdogs have revoked 321 sale contracts for commercial housing and 282 certificates of title for properties being built in a protected area in the Changyao Mountain area of Dianchi Lake, one of Kunming’s best known scenic spots. Started in January 2015, the real estate project on Changyao Mountain being developed by Northstar Group involved building on almost 230 hectares (568 acres), roughly 92% of the mountain on the south side of Dianchi Lake, which has resulted in severe damage to the local ecosystem, according to a release from the Ministry of Ecology and Environment.
Contact editors Flynn Murphy (email@example.com) and Nerys Avery (firstname.lastname@example.org)
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