Eurasian Resources Group welcomes China’s $72 billion investment in EV sector
Eurasian Resources Group (“ERG” or “The Group”), a leading diversified natural resources producer, welcomes the Chinese Government’s announcement of a groundbreaking $72.3 billion investment in the EV sector. The investment will make electric vehicles cheaper for consumers, with EVs sold in 2024 and 2025 to be exempt from purchase tax, and the exemption to be halved in 2026 and 2027.
The investment is China’s biggest package of tax breaks for EVs yet, and is set to boost growth in the Chinese EV sector as well as extending China’s status as the driving force behind the electrification of the global mobility industry.
ERG is steadfastly committed to supporting the proliferation of EV sales in China, including through its long-standing supply agreements in the country and its role as a major global supplier of the key metals and minerals required for the global energy transition. EVs require around four times the amount of copper as a conventional engine, and more than 70% of cobalt production globally now goes to the battery sector. Therefore, it is crucial that the demand for these battery materials is met in a sustainable, responsible manner.
Benedikt Sobotka, CEO of Eurasian Resources Group and Co-Chair of the Global Battery Alliance, said: “At ERG, we are excited by the growing regulatory support for the EV market. In view of China’s historic investment pledge, we would like to express our support for this package of measures in the country, which has a 60% share of the global EV market and is the driving force in the transition towards electric mobility.”
Outside of China, the growing regulatory support for regional EV markets is also anticipated to bolster global sales. ERG expects this to gather pace across the world, as governments strive to decarbonise, whilst safeguarding their technological and economic competitiveness.
ERG is one of the largest suppliers of many minerals and metals used in China. The Group has productive and long-standing relationships with Chinese partners, including cooperating on joint business development ventures in Central Asia and Africa, and China is ERG’s largest strategic sales market. ERG co-founded the Global Battery Alliance, the largest multi-stakeholder consortium in the energy storage space, which brings together over 140 members, including leading Chinese companies and organisations such as CATL, CCCMC, China EV100. This year, at the World Economic Forum in Davos, the GBA partners launched the world’s first ‘Battery Passport’ pilots, which include data from major EV producers Tesla and Audi.