China has scrapped its white list of domestic auto battery suppliers, the country's Ministry of Industry and Information Technology (MIIT) said on Monday, a move that could open up the world's largest electric car battery market.
The white list, first published in 2015 by the ministry to guide and regulate the development of China's auto battery industry, included 57 domestic auto battery manufacturers. It was abolished as part of government management reforms, the ministry said on its website.
The list set requirements and standards for battery makers with regard to production capacity, safety level and R&D capabilities.
A prerequisite for new energy vehicles (NEV) sold in the Chinese market to get subsidies was also that they were equipped with batteries on the white list.
This spurred Chinese car makers to chose domestic batteries over foreign ones, helping leading companies like Contemporary Amperex Technology (CATL) and BYD Co Ltd grow into giants in the sector.
China, the world’s largest new energy vehicle (NEV) market, has seen increased investment from South Korean battery makers LG Chem Ltd and Samsung SDI Co Ltd amid expectations of a gradual change in policy.
China has raised its standards for new energy vehicles that qualify for subsidies and reduced the amount it is willing to provide to relevant companies, as it looks to wean the sector off government support.
Growth in NEV sales has slowed in recent months after growing rapidly in past years.
（With input from Reuters）