So Western venture capitalists go on a field trip to China and after some reflection attest that Western renewable and electrification tech is “uninvestable” because Chinese companies are too far ahead.
That term univestable was applied to the Chinese stock market until recently…
In any case it’s refreshing that some Westetn finance professionals make an effort and come to China asnd see what’s happening.
Guys like hick cum VC cum VP JD Vance should do this too, but what’s he going to tell his boss then? Donald, we are scre**d?
Insightful article by Bloomberg with paywall. Below article without.
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Planet A Ventures, a Berlin-based VC, has decided that investments in Western startups spanning battery manufacturing and recycling, electrolysers, solar and hardware for wind are no longer viable, said Nick de la Forge, general partner and co-founder of the firm. He said that before the trip, he’d suspected China was way ahead, but after going there, those sectors are now “strictly off the list”.
Yair Reem, a partner at Extantia Capital, said that the trip has already led his firm to halt investments in Western battery cell manufacturers. Instead, they will look for ways to collaborate with Chinese firms across supply chains. When it comes to battery manufacturing in the West, China’s dominance means it’s now “game over”, according to Reem.
Ashwin Shashindranath, a former Macquarie Group managing director who’s now a partner at Energy Impact Partners, says what he saw on the trip made it “very clear” that Western investors live “in a bubble” in their misconceptions about China.
Al Gore, the chairman of Generation Investment Management and former US vice-president, said that China’s supremacy in the energy transition is now leading “many nations” to consider closer ties with the country. He describes America’s retreat from transition technologies as a “tragedy”.
China manufactures about 80 per cent of the world’s solar panels, supplies some 60 per cent of the planet’s wind turbines, 70 per cent of its EVs and 75 per cent of batteries, all at a lower financial cost than the West.
What’s more, China’s share of global clean energy patents stands at around 75 per cent, while the country dominates the supply chain for the critical minerals that underpin many green technologies.
[…]
#china #vc #investment #battery #renewables #solarpanels #windenergy #business #competition #hardware #manufacturing #recycling #catl
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