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