Good timing just like CATL or SHANSHAN /CMOC
and who gets the remaining 15% remaining placement facility.?
OR China is going to let Manono remain idle ??? Considering the expansion plans below .
Although not yet official, Beijing would like Chinese manufacturers to have a production volume of at least 3 to 5 GWh per year. Separately, Beijing released draft guidelines at the end of 2016 stipulating that battery manufacturers would need to have at least 8 GWh of production capacity in order to qualify for subsidies. As a signal to the market, the government is planning to back the development of only those battery companies with annual production capacities of 40 GWh or more.
Want to produce EV cars in China then will need to get your battery from approved government battery manufacturers.
Imported cars are disadvantaged by a 25% import tariff and by sneaky rules that require government-approved batteries to qualify for government subsidies. The approved batteries are all made by Chinese manufacturers. If Tesla would produce its cars in China, at least the 25% customs tariff would go away. However, car production in China requires that the fortunes are shared 50-50 with a Chinese joint venture partner. No wonder the repeated talk of Tesla production in China has remained just talk.
AVZ Price at posting:
21.5¢ Sentiment: Buy Disclosure: Held
