VZCZCXRO9537
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #2865/01 2870951
ZNR UUUUU ZZH
R 140951Z OCT 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 6430
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RULSDMK/DEPT OF TRANSPORTATION WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
INFO RUEHOO/CHINA POSTS COLLECTIVE

UNCLAS SECTION 01 OF 02 BEIJING 002865 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: ECON ENRG ELTN EIND SENV CH
SUBJECT: China/Electric Vehicles: Participants at First US-China 
Forum Call for Joint Standards 
 
This cable is Sensitive But Unclassified (SBU) and for official use 
only.  Not for transmission outside USG channels. 
 
¶1.  (SBU) Summary.  During the inaugural meeting of the U.S.-China 
Electric Vehicle (EV) Forum held in Beijing September 29, key 
industry, government and academic leaders underscored the need for 
greater cooperation on the development of electric vehicles, 
particularly in the area of developing standards.  Although the EV 
industry is still in its infancy, participants agreed it was on the 
brink of exciting advances, but questioned which EV technologies 
would dominate.  Department of Energy (DOE) Assistant Secretary 
David Sandalow and Ministry of Science and Technology (MOST) 
Minister Wan Gang identified concrete steps for cooperation in 
research, standards, and demonstration projects.  End Summary. 
 
¶2.  (SBU) The joint MOST and DOE-sponsored conference brought 
together 142 participants, three times the expected turnout. 
Government officials, auto industry leaders, non-governmental 
organizations, advocacy groups, academics and representatives from 
think tanks discussed current trends in electrification.  Among the 
organizations represented were the State Council's Development 
Research Center (DRC), Tsinghua University, Berkeley University, 
China Automotive Engineering Research Institute Co. Ltd., Chery 
Automotive, Changan Auto, Tianjin Qingyuan, and Tianjin Lishen 
Battery. 
 
OPPORTUNITIES FOR COOPERATION 
----------------------------- 
 
¶3.  (SBU) Minister of Science and Technology Wan Gang identified 
four specific areas for U.S.-Sino cooperation: 1) establishing a 
joint roadmap for data and best practice sharing; 2) working 
together on technological support, R & D, and innovation; 3) setting 
joint testing procedures and technical standards through coordinated 
policy and legislation; 4) establishing joint demonstrations and 
pilot projects, such as cities, megacities, and fleets. 
Administrator of the National Energy Administration (NEA) Zhang 
Guobao urged greater cooperation to reduce global CO2 emissions, 
break oil dependence, and lower greenhouse gases (GHGs). 
 
NEED FOR GLOBAL STANDARDS 
------------------------- 
 
¶4.  (SBU) Minister Wan said both sides were interested in setting 
concrete standards for EVs.  Kevin Wales, President of GM China, and 
others echoed this view.  Henrik Fisker, CEO of Fisker Automotive, 
pleaded for international standards starting with the United States 
and China, "We need the governments of China and the United States 
to get together to agree on the rules and regulations, then industry 
can fall into line."  Ric Fulep, Founder of A123Systems, called for 
regulators in both countries "to understand how the battery will 
react with the grid."  White House Counselor for Energy and Climate 
Change Jody Freeman, however, pointed out the United States had a 
mix of potentially conflicting standards between the Department of 
Transportation, EPA, and state regulators.  Global standards, she 
said, would not be easy to set. 
 
NEW TECHNOLOGIES; NO SILVER BULLET 
----------------------------- 
 
¶5.  (SBU) Freeman said the EV industry was at a critical juncture 
and "on the brink of a technological revolution."  Other 
participants noted the wide-range of technological solutions for the 
future growth of EVs.  Wales outlined a spectrum of transitional 
technologies from new engines and transmissions to a clean hydrogen 
car solution.  Fulep described examples of phosphate-lithium ion 
battery advancements.  One A123Systems battery, recently debuted in 
Formula One races, was 15 times the power of a Toyota Prius. 
 
¶6.  (SBU) However, like the telecommunications technological 
development timeframe, "you can't go from the USD 10,000 black and 
white Apple desktop of the 1980s to the USD 150 iPod of 2009 
overnight," cautioned Kevin Czinger, President and CEO of Coda 
Automotives.  Others echoed that changing infrastructure at home, 
work, and transportation points in between would be a challenge, and 
that scale-up would take a long time.  However, China's State Grid 
was eager to support EV development, as EV charging at non-peak 
hours can achieve energy conservation and electricity usage 
balancing.  But before EVs become mainstream, researchers must 
continue to reduce the high costs of batteries, increase usage 
lifespan, and extend driving distance. 
 
GRASS IS ALWAYS GREENER 
----------------------- 
 
¶7.  (SBU) The World Resources Institute's Deborah Seligsohn said 
both countries think the other side has more capacity to act: 
American participants believed China had more aggressive policies, 
 
BEIJING 00002865  002 OF 002 
 
 
lower manufacturing costs, and better economies of scale in 
implementation.  Chinese counterparts viewed the United States as 
having more money for R & D, better technologies, and a more 
longstanding culture of and capacity for policy research. 
 
EV INFRASTRUCTURE STILL IN INFANCY 
----------------------------- 
 
¶8. (SBU) Participants agreed current steps toward electrification 
have been modest.  During the Beijing 2008 Olympic Games, 13 cities 
in China, including Beijing, Shanghai, and Chongqing, rolled out a 
new energy vehicle demonstration project.  The Dalian Davos Forum 
chose 257 electric vehicles to provide services for the forum. 
Additionally, the Shanghai Expo 2010 plans to showcase 1000 electric 
vehicles for visitor transportation.  Asked about the mileposts for 
EV development globally, Kevin Czinger predicted that if 5000 units 
are sold in California, the industry would be "off to the races." 
The real signal will be when the EV penetrates the "hinterland," 
answered Brian Wynne, President of the Electric Drive Transportation 
Association.  Chery Auto's Li Feng commented: "The jury is still 
out.  The next three years will be key for the industry." 
 
HUNTSMAN