(Yicai Global) Dec. 28 -- The number of new-energy vehicles in China could reach five million by 2020, state-backed online new outlet The Paper reported yesterday, citing information learned at an electric car and green travel conference in Shanghai the same day.

NEV ownership in China makes up almost half of the global market, and annual production and volume in the country could have increased by more than 50 percent this year, forecast Liu Huibin, secretary of the parking equipment branch of the China Construction Machinery Association. He believes the growth rate will increase next year.

China's population generates huge space for market expansion, added Ji Guoping, president of the China Power Supply Association. The east of the country has a relatively developed economy and there are ample funds for research. The nation also has 30 percent of the world's lithium resources, so doesn't need to import the key material in NEV batteries.

But there are still a number of problems in the sector, Ji continued. Consumers lack awareness of new-energy vehicles, there aren't enough charging facilities and NEVs cost more than traditionally-fueled vehicles.

Chinese NEV production increased by 19.7 percent to 212,000 units in the first half, while sales climbed 14.4 percent to 195,000. For pure electric vehicles, the figures were 175,000 (up 30.4 percent) and 160,000 (up 30.4 percent), respectively.