A subsidiary of state-owned electric firm State Grid has signed a new agreement with Chinese carmaker BAIC Group to collaboratively support the country's new energy vehicle support facilities. State Grid's wholly-owned subsidiary State Grid Electric Vehicle Service Co had also agreed to work with BAIC to help revitalize China's energy and transportation industries after months of reduced growth due to the global health crisis.
Under the agreement, the two companies will be working hand-in-hand to further develop new technologies and infrastructures to support the growth of the country's new energy sector. This will include the building of new EV charging stations and battery-replacement outlets, along with supportive measures to bolster technologies such as battery packs, green energy production, and smart cities.
State Grid EV Service chairman, Quan Shengming, mentioned in a statement that having the necessary infrastructure to support the growing number of new energy vehicles will be vital in promoting further industrial development in the sector. He added that China's Government Work Report had highlighted this fact, outlining the need for "new infrastructure" to support the country's continued growth.
In line with the government's mission, China's Ministry of Industry and Information Technology had stated that it is already laying the groundwork for new guidelines to support the country's further electrification. This will include guidelines for the establishment of infrastructures such as charging piles and EV battery replacement stations.
Apart from constructing EV battery replacement stations, State Grid had launched a multi-billion dollar project aimed at placing up to 78,000 charging piles across the country. The SOE expects the project to be completed before the year ends. As of this month, State Grid had more than 658,500 interconnected charging piles under its smart car network.
State Grid EV Service revealed that the construction of new EV battery-replacement stations in Qingdao and Ji'nan had already started since Monday. Unlike typical electric vehicles, replaceable battery-powered cars can easily get back on the road by swapping their used batteries with newly charged units.
BAIC Group and State Grid EV Service mentioned that they will both be playing into their own respective advantages to achieve their goals. By doing so, BAIC can benefit from the increase in new energy vehicle demand, while State Grid EV Service can continue to provide energy to the sector more efficiently and effectively.
Both companies will also be working together to come up with better and more innovative solutions to make owning a battery-powered vehicle much more convenient for end-users. The companies hope to develop new charging and battery replacement modes that are as convenient when compared to traditional gasoline-powered cars.