China to Support Hydrogen and Fuel Cell Vehicles to Go Green

U.S.-listed Chinese electric vehicles saw their stocks trading higher Tuesday after Beijing once again proclaimed support for the industry.

Author: CapitalWatch Staff   

China will push ahead with the development of China's hydrogen energy and fuel cell vehicle industry, a government official said on Tuesday, as part of wider efforts to promote green energy in the world's largest auto market.

"Hydrogen fuel cell vehicles and pure electric vehicles with lithium batteries are important technical routes for new energy vehicles," said Libin Huang, a spokesman for the Ministry of Industry and Information Technology (MIIT).

Pure electric vehicles are more suitable for urban and short-distance passenger travel, while hydrogen fuel cells are more suitable for long-distance and large commercial vehicles, Huang said.

"We believe that hydrogen fuel cell vehicles and pure electric vehicles will coexist and complement each other for a long time to meet the needs of transportation and people's travel," Huang said.

The announcement sent the stocks of Chinese electric vehicles higher intraday Tuesday.

Electric vehicle maker Kandi Technologies Group Inc. (Nasdaq: KNDI) was up 2 percent, at $5.53 per American depositary share. Nio Inc. (NYSE: NIO), which is said to challenge Tesla with its cheaper SUVs, was trading at $4.85 per share, up 7 cents mid-day. Niu Technologies (Nasdaq: NIU), which makes electric scooters, jumped 8 percent to $9.96 per share. Lastly, shares in Borqs Technologies Inc. (Nasdaq: BRQS), which delved into the electric vehicles business last year, also rose 8 percent to $4.85 apiece.

Senior industry executives and academics in China have urged the government to support hydrogen fuel cell technology due to its suitability for commercial vehicles.

Japan's Toyota Motor Corp. plans to supply fuel cell components to China's commercial vehicle makers after launching a joint research institute with Tsinghua University last week.

(Reuters contributed to this article)