China’s BYD Automobile Co Ltd said yesterday it will start mass production of rechargeable electric cars next year after conquering cost difficulties by using cheaper raw materials.

The first model, powered by both hybrid and electric technologies, will be launched in the second half of next year after nearly four years of research and development, the Shenzhen-based car maker said yesterday.

Started as a battery maker for cell phones, BYD said its new electric cars take both gasoline and can be recharged with batteries.

The environmentally friendly car could not only reduce fuel consumption but also improve driving dynamics.

BYD uses an iron-based battery instead of a lithium battery to reduce high production costs, which has prevented car makers from starting commercial manufacturing worldwide.

"The iron battery proves to have better safety performance and larger capacity. The cost could also be lowered by using abundant resources and affordable raw materials," BYD said in an e-mail statement.

Last year, the Hong Kong-listed company showed off an electric concept car, powered by the same iron-based battery, that can be 70 percent recharged in just 10 minutes.

Most car makers from home and abroad are making efforts to develop new-energy vehicles for lower pollution.

The Chinese government is encouraging domestic car makers to work hard on rolling out vehicles using alternative fuels or applying fuel-cell and hybrid technology to lead the global automotive industry.

Shanghai Automotive Industry Corp showed a concept car earlier this year using a hydrogen cell to generate electricity and power the vehicle at speeds up to 120 kilometers per hour.

Commercial production could begin as early as 2010, when SAIC aims to be making 50,000 clean-energy vehicles.

BYD started making cars in 2005 with its first model, the F3 sedan. Its sales jumped to 51,000 in the first half of this year, and its range includes a new hatchback F3.

The company aims to sell 100,000 cars this year, an increase of 67 percent from last year's 60,000 units.

(Shanghai Daily October 9, 2007)