China’s EV Agenda Is Driving Demand For Aluminum

China knows it has big emissions problems and has upped the ante yet more toward mandating EVs to the point now it is projected to significantly move the market for aluminum.

According to Bloomberg, the nation is now calling for no fewer than 30 percent of all government vehicles to be powered by alternative energy by 2016, and their construction will include light-weight aluminum.

“China has a very aggressive target for using electric vehicles,” said Shashi Maudgal, president of aluminum supplier Novelis Asia yesterday. “If this project takes off, this 30 percent increase will be much more.”

Presently China, Japan and South Korea use around 50,000 metric tons annually. For at least the next decade estimates are for 30-percent year-over–year growth of demand as China significantly increases its use in car bodies.

Last winter, Premier Li Keqiang and other leaders began pushing harder for the world’s largest carbon emitter after smog levels crested to hazardous levels.

In 2009, China set carbon reduction goals to be as great as 45 percent compared to 2005 levels by 2020. Its action mirrored similar moves by the U.S. and Europe to attempt a more-serious curtailing of CO2 emissions.

In the process, it’s being said China may wind up being a driver of the global EV industry in due time.

“China may surprise us by growing faster than anyone else,” Maudgal said. ’’China probably has upside.’’

The aluminum news is just one more indicator of seriousness of intent for a country for which emissions are not just about global environmental concerns, they are at a level where human health for its citizens is being more clearly affected.

Bloomberg