Hyperdrive
China EV Battery Boom Set to Turn Ugly as Subsidies Revised
- Buffett’s BYD, CATL are best sector bets: Bernstein’s Newman
- Auto of future will need high-density, long-range batteries
This article is for subscribers only.
China’s electric-vehicle battery sector is set for a brutal reshuffle as the government reforms subsidies to meet the more exacting technological demands of next-generation transport, according to Sanford C. Bernstein & Co.
China built massive new battery capacity in recent years, aided by generous government support, creating industry heavyweights Contemporary Amperex Technology Ltd. and the Warren Buffett-backed BYD Co. Of more than 25 producers examined by Bernstein, only those two are operating at sufficient scale, and with the best technology, people and products, to have a secure future, according to the broker.