Save
Print
Mining giant BHP Group said it will support the growth of electric vehicles or EVs in China, the world's largest auto market.
One of its top executives said on Tuesday that BHP is anticipating more growth opportunities in the country amid urbanization.
BHP, he said, sees China's new energy vehicle or NEV revolution as a big opportunity. "We aim to increase our exposure in the years to come, and are committed to the building of the broader electric vehicle ecosystem in China," said Huw McKay, chief economist at BHP.
As the new energy vehicles in China are to become more prevalent in the years to come, the company is committed to further increase its presence in the country and supply more reliable, sustainable supply of raw materials such as nickel for batteries, he said.
BHP, he said, anticipates that demand for nickel from the battery sector will grow by over 500 percent in the coming decade.
"BHP has a business that's very complementary to China, as the country's extraordinarily successful urbanization and industrialization drive over the last 40 years has led to a mutually beneficial relationship in steel, copper and energy commodities," he said.
"The next wave of Chinese development, characterized by late-stage urbanization, high-value manufacturing like new energy vehicles, emissions and energy intensity reduction, will breathe fresh life into traditional commodities and open up a range of new areas of mutual interest."
China has become the most important partner, the largest market, as well as an increasingly significant supplier of goods and services for BHP, he said.
Analysts said the development of NEVs will not only improve the level of China's energy security by lowering dependence on imported oil, but also improve China's environment at the same time.
New demand for copper and nickel has been driven by greener technologies and product innovations, while greater investment in processes to tackle climate change may spur higher metal intensity in applications, said Zhu Yi, a senior analyst for metals and mining at Bloomberg Intelligence.
According to a report released by Automotive Data of China, an arm of the China Automotive Technology and Research Center, on Tuesday, China is currently heavily reliant on imports of battery raw materials. For instance, for lithium, 80 percent of required lithium ore has to be imported.
China is currently the biggest market for NEVs and home to some of the world's leading battery producers. NEV sales are growing rapidly in the country and present both huge market potential and great growth opportunities for market participants.
As this trajectory plays out, reliable and sustainable supply of raw materials like nickel for batteries will be critical to support the transition to NEVs, Automotive Data said.
With such a strong domestic foundation, China also has the potential to become a major exporter of NEVs and NEV batteries in the coming decades, said McKay.
"We expect that China will outgrow its current mix of battery chemistries and Chinese firms will be capable of competing in all key vehicle segments globally, as well as at home where more prosperous consumers will demand higher-performance vehicles," he said.
"China's leading position as both a consumer and manufacturing base for renewable power, both solar and wind, has been extremely beneficial for global emissions reduction to date, and we expect this will be a very exciting area of future collaboration."
Source: China Daily
Copyright © 2013 Ferro-Alloys.Com. All Rights Reserved. Without permission, any unit and individual shall not copy or reprint!
- [Editor:kangmingfei]
Daily News
Research
Magazine
Company Database
Customized Database
Conferences
Advertisement
Trade
Online inquiry
Contact
Tell Us What You Think