The Boom In New Energy Vehicles Will Boost Copper Consumption

- Oct 11, 2017-

At present, new energy vehicles are in a period of vigorous development. In order to protect the environment and save resources, the development of new energy vehicles is highly valued by governments.

Recently, many countries have been reported to ban traditional energy vehicles schedule, to China's ministry of industry and also start the related research on China's schedule, the superposition of the recently released "double integral system" will take effect in 2018, much attention has been paid to make the new energy automotive industry.

Every traditional car with copper content in roughly 20 to 30 kilograms, and new energy cars bike with copper content is about 2 times of traditional fuel vehicle, the future of new energy vehicles with the increased amount of copper will be a bright spot in the field of copper consumption.

According to statistics, in 2016 the production of 510000 cars in China's new energy, is expected to yield about 670000 vehicles in 2017, according to the government's plan, by 2020 new energy auto output will reach 2 million, keep the compound growth rate of nearly 40%, is the most determined growing industry in the future.

Began in 2013, new energy vehicles in China began to implement subsidy policy, new energy automotive industry into explosive growth, in 2014 and 2015, output growth is above 300%, and in 2016, because the new energy automobile enterprise expenses Revelations, corresponding country lowered subsidies, subsidies will be fully exit after 2020.

According to the company, the subsidy rebate has depressed the sales growth of new energy vehicles, and the growth rate of new energy vehicles in 2016 has dropped sharply to 36%, and the profits of enterprises have also declined.

The gradual withdrawal of subsidy policy is followed by a double integral policy.

On June 13, the state council issued "the average fuel consumption and new energy automobile passenger car enterprises management method integrating parallel consultation (draft)", the so-called "double integral policy", in 2018 the implementation of the policy of double integral, will greatly promote the development of new energy vehicles, realizing the goal of 2 million vehicles by 2020.

Based on the new energy vehicle output and the 50 kilograms of copper used in bicycles, the amount of copper used in new energy vehicles is calculated every year, and the amount of copper for new energy vehicles is expected to increase to about 100,000 tons by 2020.