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Ideanomics' electric vehicle division eyes Chinese government initiative to increase EV adoption

The Chinese State Council issued what it called the Three-Year Action Plan for the Battle of the Blue Sky

Multi-lane street in China with cars
The New York-based company has offices in Beijing, including its electric vehicle division, Mobile Energy Global

Ideanomics Inc (NASDAQ:IDEX) informed investors Tuesday about an action plan from the Chinese State Council to accelerate the country’s adoption of electric vehicles.

The New York-based company has offices in Beijing, including its electric vehicle division, Mobile Energy Global. 

The State Council, China’s primary administrative authority, issued what it called the Three-Year Action Plan for the Battle of the Blue Sky, an acceleration of its original environmental Big Sky Plan from 2018.

READ: Ideanomics’ MEG division deploys pilot program in Nanjing to monetize electric vehicle energy sales in China

The centerpiece of the 2018 plan is the development of an eco-friendly transport system with higher fuel efficiency and lower emissions with fines for pollution, carbon emissions and water contamination. The new three-year initiative includes agreements from 24 provinces and cities to speed the adoption of new energy vehicles, and MEG is working with seven priority regions in the country.

The agreements from each region, according to the company, are as follows: 

  • Inner Mongolia: Plan to promote the application of 100,000 new energy vehicles throughout the region.
  • Shandong Province: All buses will be replaced with new energy vehicles by the end of 2020. The broader target is for the number of clean energy vehicles to reach 500,000 in 2022.
  • Jiangsu Province: Plans to promote the adoption of 250,000 clean energy vehicles. By the end of 2020, charging infrastructure to support 200,000 electric vehicles will be in place. Ideanomics' MEG is actively involved in this effort through its charging station initiative with PetroChina in Nanjing – a major city in Jiangsu province.
  • Guangdong Province: By the end of 2020, new energy buses in Guangdong will account for more than 75% of all buses, and all Pearl River Delta cities will commence electrification adoption plans in 2020. Taxis in the Pearl River Delta are mandated to use new energy vehicles, of which pure electric vehicles will account for no less than 80% and increase by 5 percentage points year by year.
  • Hainan Province: Electrification of the entire island by 2030. Hainan has introduced legislation banning the sale of fossil fuel vehicles by 2030, to ensure adoption of new energy vehicles within the island.
  • Sichuan Province: Legislation has been passed to ban fossil fuel trucks in city centers. The city of Chengdu has assumed a leadership role in the promotion and application of new energy vehicles in the logistics and distribution industries. From 2017, Chengdu phased in the gradual reduction of fossil fuel cargo vehicles into the city over three years.
  • Guangxi: The promotion of all new passenger cars as new energy vehicles. All passenger vehicles in national scenic spots and national tourist attractions must use new energy vehicles, through either replacement or conversion. Municipalities, enterprises, public institutions, sanitation, logistics, postal, and airport commuting areas are mandated to all procure only electric vehicles as fleet renewals occur.

MEG has established relationships with leading manufacturers in the country, enabling it to meet the rapidly increasing demand for commercial EVs. Additionally, it has established a consortium of financial partners to allow fleet operators to secure large purchases. The plan to fast-track conversion to EVs will highlight MEG's strengths, the company said, and further solidify its position as a critical facilitator in the EV ecosystem.

Ideanomics is a global company focused on monetizing the adoption of commercial electric vehicles and developing next-generation financial services and fintech products. Its electric vehicle division, Mobile Energy Global, provides group purchasing discounts on commercial electric vehicles, EV batteries, as well as financing and charging solutions.

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

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Price: 3.18 USD

Market: NASDAQ
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