China’s cumulative investment in new-energy cars has topped RMB8.5 billion (US$1.27 billion), according to Zhang Zhihong, deputy director of the Ministry of Science and Technology’s high technology department.
Zhang said the ministry invested US$299.8 million in new-energy cars during the 11th Five-Year Plan which began in 2006 and ends this year. That may sound much but it pales in comparison with Renault-Nissan, which invested US$5.3 billion in electric cars in September.
McKinsey & Company asserts that while China is underdeveloped in the traditional auto industry, its new-energy auto industry is as advanced as other car-producing countries.
CapitalVue reported Chen Qingtai, former vice chairman of the Development and Research Center of the State Council, as saying China has abundant lithium and rare earth metals, two ingredients essential to the manufacture of electric cars.