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Balqon Corporation China EV Growth

Article by Jennifer Obodoa

Balqon Corporation (OTCBB: BLQN) developer and manufacturer of zero-emissions heavy-duty electric vehicles, lithium battery energy storage products and electric drive systems, similar to companies like Tesla Motors Inc. (NASDAQ: TSLA) and A123 Systems Inc. (NASDAQ: AONE), is well positioned to capitalize on China’s growth in electric vehicles.

China’s EV Market Could be the World’s Largest

China has a large problem with pollution. Approximately one third of 113 cities surveyed by the Environmental Protection Ministry failed to meet national air standards last year. According to the World Bank, 16 of the world’s 20 cities with the worst air pollution were located in China. In fact, only 1% of China’s city dwellers breath air considered safe by EU standards!

China’s electric vehicle market represents a solution to this problem. Last March, the country adopted its 12th Five Year Plan that called for a number of measures to promote EVs. The country will setup five businesses to produce batteries and electric motors within a few years and implement the supporting infrastructure for EVs throughout its major cities.

Pike Research believes that China will lead EV sales in the Asia Pacific by 2015. While Japan is currently the largest EV producer, expected to grow at 10% between 2010 and 2015, China is rapidly closing the gap with a CAGR of around 40% over the same period. And many analysts believe it’s only a matter of time before it becomes the world’s largest EV market.

Balqon Capitalizes on Chinese EV Demand

Balqon is a leading provider of electric vehicle technologies to China from the United States. In early 2011, the company received a .9 million order for 300 electric drive systems from Winston Global Energy. The order created 150 jobs in Los Angeles, CA and will be used to power a fleet of 15-40 passenger buses in Chinese municipalities.

Balqon CEO Balwinder Samra elaborated on this agreement in a Fox Business News interview:

The move could pave the way for many more orders in China, particularly with its agreement with Winston Global Energy. Winston Global Energy is a Chinese green energy company founded by Winston Chung, a leading lithium battery innovator and fuel cell research philanthropist based in China.

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