The almost all production of electric vehicles is the next big investment opportunity in green technology, the chief directorship of a private equity fund said on Monday.
“Solar technology has been there for a elongated time. China has gotten wholeheartedly into it, reduced the cost to a farcical level right now to break even on many areas, many sections,” said Bo Bai, CEO of the U.S.-China Green Fund.
“Electric vehicles, it’s similar. The technology has go oned to a certain stage with mass production and logistics management. The bring in is reducing very substantially,” Bai told CNBC at the Credit Suisse Asian Investment Colloquium in Hong Kong.
When the price comes down to a level that’s low tolerably, there will be a ripple effect throughout the energy industry, he added.
Beijing has aggressively attempted to promote green technologies primarily to cut the country’s severe — and politically-sensitive — air dirtying problem.
Set up in 2015, the Beijing-based U.S.-China Green Fund made $400 million in investments concluding year.
In 2016, China was responsible for nearly half of the world’s solar power vegetation, according to the International Energy Agency.
There is now a fierce battle for galvanizing vehicle market share in China.