NEV cooperation among RCEP members fuels green development

This photo taken on Oct. 10, 2023 shows the NIO Second Advanced Manufacturing Base in Hefei, east China's Anhui Province. [Photo/Xinhua]

From new energy vehicles (NEVs) to shared visions of a greener future, low-carbon development brought China and its fellow Regional Comprehensive Economic Partnership (RCEP) member states closer together at a recent dialogue in Hefei, east China's Anhui Province.

The dialogue was focused on NEVs and advanced photovoltaic industrial and supply chains, and spotlighted the growing resolve of participating countries to transform mobility and advance sustainable development.

It was a key part of the 2025 RCEP Local Governments and Friendship Cities Cooperation (Huangshan) Forum, which ran from June 4 to 6 and brought together approximately 300 delegates from all 15 RCEP member states. The forum yielded 27 cooperation deals spanning trade, technology and sister-city ties.

Under the RCEP framework, a number of joint projects were unveiled and signed during the event, reflecting a shared commitment to sustainability and deeper regional collaboration.

As protectionism and unilateralism continue to challenge global supply chains, the electric vehicle industry is facing increasing uncertainty.

Against this backdrop and as the world's largest free trade agreement by population and trade volume, the RCEP is emerging as a stabilizing force, bringing greater certainty to the global economy. This perspective was echoed by many forum participants.

Under the RCEP framework, NEV cooperation between member states is gaining strong momentum. In May, PT SGMW Motor Indonesia (Wuling) celebrated the production of its 3-millionth electric vehicle globally, and has manufactured 40,000 units at its plant in Cikarang, West Java. Geely reached a key milestone with the trial production of its EX5 model at its factory in Purwakarta, Indonesia, which is set to begin mass production in the third quarter.

Meanwhile, Chinese electric vehicle giant BYD has begun construction on a passenger vehicle plant in Cambodia's Sihanoukville Special Economic Zone. With a planned annual capacity of 10,000 vehicles, the plant is expected to start operations by the end of this year.

Representatives at the forum noted a clear shift in NEV cooperation among RCEP members -- from early-stage vehicle exports to deeper local integration. This transition has been marked by the establishment of regional manufacturing hubs and the development of full supply chains, including battery materials and key components.

SAIC-GM-Wuling Automobile's factory in Indonesia, for example, has adopted a comprehensive setup encompassing both car manufacturing and the supply of parts to support the upgrade of the country's auto industry.

Major Chinese battery makers such as China Aviation Lithium Battery (CALB), Gotion High-Tech and SVOLT Energy Technology have also expanded into RCEP countries, building factories in Thailand, Vietnam and beyond. Some have already begun local production, accelerating the regional growth of an electric vehicle ecosystem.

"ASEAN represents a vibrant and dynamic region, with rising demand for mobility solutions, growing environmental awareness, and a youthful population that embraces change," said Edmund Araga, president of the Electric Vehicle Association of the Philippines.

In recent years, RCEP members have set goals to cut carbon emissions. Cambodia is aiming to achieve net-zero emissions by 2050 and increase its renewable energy share to 70 percent by 2030. Thailand is planning for electric vehicles to account for 30 percent of its car production by 2030, and to reach carbon neutrality by 2050.

"Together, we represent more than 2.3 billion people and around 30 percent of global GDP. That is not just economic scale -- it is social responsibility," said Bhokin Bhalakula, former president of the National Assembly of Thailand and chairman of the Thai-Chinese Culture and Economy Association, speaking of the RCEP member states.

"RCEP has established a mechanism for long-term cooperation for us," said Dennis Chuah, president of the Electric Vehicle Association of Malaysia, adding that battery development and recycling are expected to become key areas of long-term cooperation between Malaysia, China and other RCEP members.

As the host city of the dialogue, Hefei is making big strides in the new energy sector. In 2024, the city's NEV output exceeded 1.37 million units, with the total value of its industrial chain hitting 260 billion yuan (about 36.19 billion U.S. dollars). Its solar and energy storage sectors also saw rapid growth, exceeding 180 billion yuan.

According to the China Association of Automobile Manufacturers, China produced nearly 4.43 million NEVs in the first four months of 2025, up 48.3 percent year on year, with sales rising 46.2 percent to 4.3 million units. NEVs accounted for 42.7 percent of all new vehicle sales during the period.

"China has become a global leader in NEVs -- not just in terms of production, but in R&D, battery innovation, infrastructure and scale," Araga said. "Together, we have the power to shape the future of mobility in Asia and the world."