China: "Electric vehicle batteries 'must improve'" Govt. to Spend $15.4 Bil. (BRK.B)

From China Daily:

Government plans to invest $15.4b over 10 years to stimulate industry
BEIJING - China's new-energy vehicle production capacity is expected to hit around 300,000 units by 2012, according to the latest research from the Ministry of Science and Technology.
The number includes domestic automakers' production capacity of hybrids and pure electric and fuel-cell vehicles, excluding the production capacity of joint ventures, Zhen Zijian, deputy director of the office for electric vehicles, told China Daily.

The office, under the Ministry of Science and Technology, is deeply involved in mapping the nation's strategy for electric cars. However, the actual output will depend on market demand and government policies, he said.

China currently has more than 5,000 new hybrid buses on the roads. Electric cars are mainly used for taxi demonstration programs in some cities.

"Electric vehicles have yet to develop the strength to compete with conventional vehicles or serve as a substitute due to technical constraints such as immature battery technology," Zhen said. 

However, 2015 might be the turning point in the market share for electric vehicles in China as the required technologies are likely to experience big breakthroughs, he added....MORE