China plans to ban new combustion engine vehicle manufacturers
New draft regulation on auto investment by the National Development and Reform Commission (NDRC) has revealed China’s plan to ban new manufacturers of fossil-fuelled vehicles.
The NDRC’s proposals will also see existing automakers encouraged to increase investment in the development of new energy vehicles.
The key message of the regulation is to maintain concentration on vehicle and power battery manufacturing. This will also help new energy vehicle makers enter the Chinese market, according to the analysis of China Merchants Securities.
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Another aim of the regulation is to enhance the investments access standard, prevent disorderly development and improve administration of investment into the automobile industry.
The new proposal also states that enterprises and provinces with low utilisation rates of automobile capacity should be urged to increase efforts to boost production through mergers and acquisitions.
There will also be more stringent requirements on existing auto companies in order to expand their fuel vehicle production capacity.
Support will be given to state-owned auto companies and other types of enterprises to ensure mixed ownership reform and encourage the creation of collaborative alliances and automotive enterprise groups.
China will also help social capital and companies with strong technical capabilities to invest in industries such as smart cars, energy-saving cars, new energy vehicles and key components, battery recycling technology and advanced manufacturing equipment.
This regulation by the NDRC follows the news that Bejing has selected 33 road sections with a total length of 105km for testing automotive cars. Self-driving vehicles have travelled safely for 26,000km in test areas in the capital city, according to a service provider of road tests for autonomous vehicles, Bejing Innovation Centre for Mobility Intelligent.
Timeline: Tesla's Construction of Gigafactories
Tesla's mission to accelerate the world's transition to sustainable energy
Founded in 2003, Tesla was established by a group of engineers with a drive to "prove that people didn’t need to compromise to drive electric – that electric vehicles can be better, quicker and more fun to drive than gasoline cars." Almost 20 years on, Tesla today is not only manufacturing all electric vehicles, but scaleable clean energy generation and storage too.
"Tesla believes the faster the world stops relying on fossil fuels and moves towards a zero-emission future, the better," says Tesla. "Electric cars, batteries, and renewable energy generation and storage already exist independently, but when combined, they become even more powerful – that’s the future we want. "
In order to deliver on its promise of "accelerate the world’s transition to sustainable energy through increasingly affordable electric vehicles and energy products," Tesla's Gigafactory journey began in 2014 to meet its produciton goals of 500,000 cars per year (a figure which would require the entire worlds supply of lithium-ion batteries at the time).
By ramping up its production and bringing it in-house, the cost of Tesla 's battery cells declined "through economies of scale, innovative manufacturing, reduction of waste, and the simple optimisation of locating most manufacturing processes under one roof." With this reduction in battery cost, "Tesla can make products available to more and more people, allowing us to make the biggest possible impact on transitioning the world to sustainable energy."
2014: Giga Nevada and Giga New York begin construction
Born out of necessity to meet its own supply demand for sustainable energy, Tesla began the construction of its first Gigafactory in June 2014, in Reno, Nevada, followed by its Buffalo, New York facility the same year. "By bringing cell production in-house, Tesla manufactures batteries at the volumes required to meet production goals, while creating thousands of jobs," said Tesla.
2016: Reno, Nevada grand opening
Tesla’s construction of Giga Nevada came to an end in 2016, the first of its Gigafactories to complete its construction project. The factory’s grand opening took place in July 2016, and by mid-2018 reached an annual battery production rate of 20 GWh, which made it the highest-volume battery plant in the world that year.
2017: Giga New York begins production
Two years after Tesla’s second Gigafactory began construction, Giga New York was complete, and started its production operations in 2017.
2019: Giga Shanghai construction to production in record time
In 2019, Tesla selected Shanghai as its third Gigafactory location. The company constructed the factory in record time, taking just 168 working days from gaining permits to finishing the plant's construction.
2019: Giga Berlin begins construction
Announced in November 2019, Tesla began the construction of its first European Gigafactory in Berlin. The Gigafactory is still under construction.
2020: Giga Texas begins construction
The following year in August 2020, Tesla began the construction of its Giga Texas factory. The company’s third Gigafactory in the US is still under construction.
2021: Giga Texas and Giga Berlin expected completion of construction
Looking to the future, Tesla expects to complete the construction of its Giga Texas and Giga Berlin factories in May 2021 and July 2021 respectively.