(image: SK Innovation)
SEOUL, May 24 (Korea Bizwire) — Sources in China say that electric cars equipped with Korean-made batteries were not included in a list of cars awarded subsidies by the Chinese government.
According to industry insiders, the Ministry of Industry and Information Technology in China announced on its website yesterday a list of car models that were awarded government subsidiaries.
Dongfeng Renault and Dongfeng Kia, both equipped with Korean batteries produced by LG Chem, were absent from the list.
Electric cars with batteries produced by Samsung SDI and LG Chem have been excluded from the list since 2016 and as such, Chinese car producers have been avoiding Korean batteries ever since.
Only this month did two car manufacturers apply for subsidies after selecting Korean-produced batteries for their vehicles, only to be delisted once again.
Sales of electric cars in China depend heavily on subsidies, which account for up to half of the car price.
Meanwhile, localized joint ventures of Korean firms such as LG Chem, Samsung SDI and SK Innovation were put on the China Association of Automobile Manufacturers’ pre-whitelist for vehicle batteries.
Although the whitelist is not directly linked to the government’s subsidies, the list may have a favorable bearing on future subsidy listings as only exemplary companies are included on the whitelist.
H. S. Seo (hsseo@koreabizwire.com)
