Lithium Charge in China: Foshan Electrical Advances on Lithium Battery Venture With Hefei Guoxuan tnr.v, czx.v, alk.ax, lmr.v, tsla, rm.v, nup.ax, srz.ax, usa.ax, jnn.v, abn.v, res, mcp, avl.to, quc.v, cee.v, sqm, fmc, roc, li.v, wlc.v, clq.v, lit, nsany, byddf, gm, dai, rno.pa, hev, aone, vlnc

  China takes Electric Cars very seriously, actually, if you would like to have any car in Beijing you better hurry up and buy Electric one now. Chinese companies are moving fast into the lithium battery space, they are already very active in materials supply chain for the batteries and now moving into the lithium production and development as well. Chinese companies like Shan Shan are taking stakes in lithium junior miners like Rodinia Lithium.

"China has promoted Electric Cars to the status of strategic industry, Lithium and Rare Earths are already gaining status of strategic commodities as the base for this new disruptive technology - we will have a far reaching M&A developments from this explosive combination in these very small markets.

"Nothing is changing under the sun in the US Corp. so far - America is under the oil lobby stronghold and if you would like to understand the real situation, just talk to the junior miners in Lithium and REE sectors. Chinese, Koreans and Japanese companies are the only one on the road now, buying all available projects in Lithium and REE space.

Facebook is great, but how are we going to drive in five years time? What are we going to eat for that matter with Oil above 150 dollars again?

There is almost no money available now in U.S. or Canada to advance the Lithium and REE exploration, apart from few names everybody is talking about now. The rest of the sector will be funded by the Asian interest in the end."

"China's commitment to high efficiency vehicles

- Electric vehicles are classified as a "strategic industry" under the twelfth Five-Year plan (2011-15), and parts manufactures will receive tax breaks and subsidies. the government has pledged that it will do whatever is necessary to push Chinese auto industry into the lead on electric vehicles over the next decade.

- Premier Wen Jiabao's choice three years ago for Minister of Science and Technology, WAN Gang, was the first minister in at least three decades who is not a member of the Communist Party, but he is former Audi auto engineer and ex-chief scientist for the Chinese' government research panel on electric cars.

- Senior Chinese officials, including Wan Gang, have outlined China's aim to be the world's largest producer of electric cars within three years, with a near-term goal of producing 500k units in 2011.

- The central government has already pledged about $17B to push the electric vehicle effort, including about $2B for R&D and an $8,800/car subsidy in 26 cities (announced in June). Provincial governments have been encouraged to contribute on top of that.

- The state-owned utilities have been tasked with building out the smart grid and charging infrastructure required for a rapid ramp up in electrics. According to the State Grid Corporation (SGC), which provides about 85% of the country's power, 75 electric charging stations are planned for 27 cities by the end of 2010. The pace will accelerate next year."  

Bloomberg:

Foshan Electrical Advances on Lithium Battery Venture With Hefei Guoxuan

Foshan Electrical and Lighting Co., a Chinese electro-optical product maker, rose the most in five weeks after saying it will set up a joint venture to make lithium batteries with Hefei Guoxuan High-Tech Power Energy Co.

The shares jumped 2.6 percent, the biggest increase since March 7, to 15.27 yuan, and traded at 15.10 yuan as of 10:09 a.m. in Shenzhen.

The two companies will invest as much as 261 million yuan in the venture Guangdong Fozhao Guoxuan Power Energy Co, Foshan Electric said in a filing to the Shenzhen stock exchange.

To contact the reporter on this story: Feifei Shen in Beijing at fshen11@bloomberg.net

To contact the editor responsible for this story: Gregory Turk at gturk2@bloomberg.net"

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