Analysts said the development of NEVs will not only improve the level of China's energy security by lowering dependence on imported oil, but also improve China's environment at the same time.

New demand for copper and nickel has been driven by greener technologies and product innovations, while greater investment in processes to tackle climate change may spur higher metal intensity in applications, said Zhu Yi, a senior analyst for metals and mining at Bloomberg Intelligence.

According to a report released by Automotive Data of China, an arm of the China Automotive Technology and Research Center, on Tuesday, China is currently heavily reliant on imports of battery raw materials. For instance, for lithium, 80 percent of required lithium ore has to be imported.

China is currently the biggest market for NEVs and home to some of the world's leading battery producers. NEV sales are growing rapidly in the country and present both huge market potential and great growth opportunities for market participants.

As this trajectory plays out, reliable and sustainable supply of raw materials like nickel for batteries will be critical to support the transition to NEVs, Automotive Data said.

With such a strong domestic foundation, China also has the potential to become a major exporter of NEVs and NEV batteries in the coming decades, said McKay.

"We expect that China will outgrow its current mix of battery chemistries and Chinese firms will be capable of competing in all key vehicle segments globally, as well as at home where more prosperous consumers will demand higher-performance vehicles," he said.

"China's leading position as both a consumer and manufacturing base for renewable power, both solar and wind, has been extremely beneficial for global emissions reduction to date, and we expect this will be a very exciting area of future collaboration."