Energy Insider: Beijing Names New Climate Envoy, China Books Record Coal Output, Imports in 2023

Chinese battery-makers face South Korean patent probe, Shanxi to build 150 ‘intelligent’ coal mines this year, China’s ‘new three’ exports hit a record last year

Workers at a photovoltaic panel production workshop in Huzhou, Zhejiang province produce a batch of solar panels for export in June, 2023. Photo: VCG

• Exports of the ‘New Three’ soar to new height

• Coal output and imports jump to record levels

• Beijing appoints new special envoy for climate

• Chinese battery makers face South Korean probe

• Coal hub doubles down on ‘intelligent’ mines

In focus: Annual exports of “New Three” smash 1-trillion-yuan mark

What’s new: The annual exports of China-made solar cells, electric vehicles (EVs) and lithium-ion batteries have exceeded a combined 1 trillion yuan ($140 billion) for the first time, according to Wang Lingjun, the vice minister of China’s General Administration of Customs (GAC).

The three products, branded as the “New Three” by Chinese officials, recorded 1.06 trillion yuan in overseas sales in 2023, a 29.9% year-on-year increase, Wang said at a press conference on Jan. 12.

Exports of solar cells and lithium-ion batteries to Association of Southeast Asian Nations (ASEAN), China’s biggest trade partner for intermediate goods, increased at “a high rate”, said Lü Daliang, GAC spokesperson and director of the statistics and analysis department.

Currently, one in every three vehicles exported by China is an EV, Lü noted. The world’s second-largest economy exported 1.77 million EVs over the past 12 months, up 67.1% on the year, he added.

Why it matters: The growing export of the “New Three” showcased the developmental momentum of those Chinese industries that are not only green and digital, but also have high tech and high added value, Pang Chaoran, an associate researcher at the Research Institute of the Ministry of Commerce, told state-affiliated International Business Daily in June.

But Chinese firms are facing an increasingly complicated global market. For example, the European Union launched an anti-subsidy investigation into new China-made EVs last year. Three of China’s biggest automakers — BYD Co. Ltd., Zhejiang Geely Holding Group Co. Ltd., and SAIC Motor Corp. Ltd — were subjects of the probe.

Data: Coal output and imports hit record levels in 2023

What’s new: China produced and imported more coal in 2023 than any other year on record, according to official data.

The country imported 474.4 million tonnes of the fossil fuel over the past 12 months, up 61.8% year-on-year, China’s National Coal Association said in an online post on Jan. 12, citing data from General Administration of Customs.

The jump in the volume also pushed up total spending on foreign coal by 24.1% to $53 billion last year, the post said.

Meanwhile, China’s coal output rose 2.9% year–on-year in 2023, reaching 4.66 billion tons, the National Bureau of Statistics said on Jan. 17, the third year in a row the country has set an annual output record.

Why it matters: The growth in production and imports reflect China’s effort to bolster its power supply, after shortages struck swathes of the country in 2021 and 2022.

Supply and demand of coal in the country “has been improving in general since the beginning of 2023,” Li Ming, a director at China Coal Transportation and Distribution Association, told China Coal News.

In the first 11 months of 2023, China’s demand for thermal coal increased 6% on the year, predominantly driven by the chemicals and steel industries, reported China Coal News.

Indonesia, Russia and Mongolia were the three largest coal sellers to China during the period, the newspaper said.

Diplomacy: Liu Zhenmin succeeds Xie Zhenhua as new climate envoy

What’s new: China has appointed Liu Zhenmin, a 68-year-old veteran diplomat, to succeed Xie Zhenhua as the country’s new special envoy for climate change, the Ministry of Ecology and Environment (MEE) announced on Jan. 12.

Xie — who took the role for a second time in February 2021 — is stepping down due to health reasons, the MEE said.

Liu was a vice foreign minister and under-secretary-general of the United Nations and has participated in multi-lateral climate negotiations as the leader or a member of the Chinese delegation multiple times, Mao Ning, a spokeswoman at the Ministry of Foreign Affairs, told a press briefing on Jan. 15.

Xie’s U.S. counterpart John Kerry also plans to step down from his role, according to various news outlets.

Why it matters: Xie and Kerry’s retirements herald a new chapter in the climate diplomacy between China and the U.S., the world’s two largest CO2 emitters. In November, the two countries agreed to boost their climate cooperation — a critical move in the global energy transition and fight against climate change.

The two sides have launched a climate working group, a key part of their cooperation on Jan. 12.

Liu “will continue stepping up dialogue and cooperation with all parties and contributing to the global transition to green and low-carbon development,” Mao said.

Industry: Chinese battery-makers face South Korean patent probe

What’s new: South Korea’s trade commission is investigating three Chinese manufacturers of a key material of EV batteries over alleged patent infringement.

In a statement released Jan. 12, the commission said the probe would focus on NCM811, a high-nickel cathode designed to have a higher energy intensity with a lower price compared to other types of cathodes.

The commission did not reveal the names of the three Chinese firms. But it said the investigation had been launched at the request of LG Chem Ltd., a major South Korean chemical firm. Apart from the Chinese companies, a Korean battery importer will also be probed, the commission added.

Why it matters: The investigation indicates that global competition in the rechargeable battery business “is intensifying even in the area of intellectual property rights,” an official from the Korea Trade Commission said in the release.

Chinese companies started focusing on making batteries with NCM811 cathode materials in 2016 following supportive government policies. They quickly edged out their Japanese and Korean competitors in the local market after production ballooned.

Currently, six of the world’s top 10 battery-makers are from China, with a combined global market share of 63.3%, according to South Korean market consultancy SNE Research.

Coal: Shanxi plans to build 150 “intelligent” mines in 2024

What’s new: Shanxi province, China’s coal hub, plans to build 150 new “intelligent” coal mines in 2024 as part of its effort to deepen the transition of its key industry, the official Xinhua News Agency reported.

So far, the province, China’s largest coal-producing region in 2022, has completed building 118 such mines, Miao Huanli, the deputy director of the province’s energy administration, said at a meeting on Jan. 16, according to the Xinhua report.

Fu Tianguang, a director at a local coal company, said that “intelligentization” had helped the industry to reduce workforce, enhance safety and increase efficiency, the report said. Fu added that the strategy had helped coal washing factories process an extra 300,000 tons of coal each year.

Why it matters: The central government quickened its step to promote the “intelligentization” of mines in 2020 as part of a wider plan to expand the use of artificial intelligence (AI) in China’s energy industry.

The move aims to bring a host of technologies, such as AI, cloud computing, robots and intelligent equipment, to coal mines.

It is viewed as a way to carry the coal industry into the future while bolstering the country’s energy security, the state-run Economic Daily reported in May.