Anhui's legislature has given the first review to a draft law on building local NEV clusters, China's first dedicated NEV-focused law.

(Image credit: CnEVPost)

The eastern Chinese province of Anhui, home to Nio's (NYSE: NIO) two factories, plans to enact a special law to boost the local new energy vehicle (NEV) industry.

On September 19, Anhui's legislature held its first review of a draft law on building local NEV clusters, China's first dedicated law focused on the NEV industry, the local Anhui Daily reported today.

The draft law encourages social entities to participate in the construction of NEV industry clusters while emphasizing the need to avoid homogenization, disorderly competition and unnecessary duplication of construction, the report noted.

The draft law encourages the development of new technology routes, expressing support for the research and development of new technologies such as hydrogen internal combustion engines, hydrogen from methanol, hydrogen from formic acid, solid-state batteries, silicon carbide semiconductors, and skateboard chassis.

The draft encourages the promotion of the use of NEVs in areas such as urban public transportation, cabs, logistics and distribution, sanitation, and vehicles used by state-owned enterprises.

The use of new energy heavy-duty trucks is encouraged in scenarios including ports, terminals and mines.

The draft also addresses the construction of the local public charging network in Anhui.

Governments at or above the county level should strengthen the construction of charging and battery swap infrastructure along highways, in suburban areas and old neighborhoods, and the construction of intercity fast charging networks.

Local governments should also prioritize the construction of smart road infrastructure into road planning, and promote the coordinated development of smart city infrastructure and smart network connected vehicles, according to the draft.

Anhui is one of the Chinese provinces with the strongest support for the NEV industry.

On April 29, 2021, Nio and the Hefei municipal government jointly announced the start of construction of NeoPark, an electric vehicle industrial park promoted by the two, with Nio's second factory being the first project in NeoPark.

Nio's vehicles are produced at two factories in Hefei, including the F1 factory, the JAC Nio advanced manufacturing base, and the F2 factory at NeoPark.

Power battery giant Gotion High-tech is headquartered in Hefei, and Volkswagen also has a manufacturing facility in the city.

Volkswagen's electric vehicle plant in Hefei is about to go into operation, with a maximum annual capacity of 350,000 vehicles, Volkswagen China CEO Ralf Brandstätter said earlier today at the 2023 World Manufacturing Convention in Hefei.

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