China BAK Selected into National Support List for the New-Energy Vehicle Industry Innovation Program

December 09, 2012 by Jeff Shepard

China BAK Battery, Inc. announced that the Company's Technical R&D Program in Key Materials, Battery and Battery Pack for use in Electric Vehicles ("EV") was selected into the National Support List for the New-Energy Vehicle Industry Innovation Program as issued by the Ministry of Finance, the Ministry of Information Technology and the Ministry of Science and Technology of the People's Republic of China on December 3, 2012 ("Innovation Program").

According to the notice jointly issued by the above three ministries, to promote the development of new-energy vehicle industry in China, the Chinese government intends to provide financial supports to 25 selected new-energy vehicles related projects, among which 8 projects, including China BAK's, are battery research and development programs. The central government is expected to arrange part of the energy-saving and emission-reducing special fund to support the Innovation Program, whose support may last for three years.

The new-energy vehicle industry is one of the seven strategic emerging industries strongly boosted by the Chinese government according to the country's 12th Five-Year National Development Plan of Strategic Emerging Industries. State Council of China also adopted the Energy-Saving and New-Energy Vehicle Industry Development Plan (2012-2020), which emphasizes the importance of the commercialization of energy-saving and new-energy vehicles, the construction of supporting facilities, and the development of key core technologies. With the goal of selling 500,000 electric and hybrid vehicles by 2015 accumulatively and 5 million by 2020, the government promotes the new energy vehicle industry through a number of subsidy programs, including tax incentives and financial supports to auto and key auto parts makers, grants for research and development, commercialization, construction of support facilities projects, incentives for car purchases, and government procurement programs.

"This is encouraging news to the Company, since the government will provide support to all the selected companies, mainly including market support and financial support. We ranked No. 1 in selected EV battery companies, and it is expected that the Company will be granted a subsidy by the Ministry of Finance to fund its program in EV sector. With the government's long-term support, we are confident to expand our market share and customer base in the EV industry," commented Mr. Xiangqian Li, CEO of China BAK.