South Korean battery maker is increasing investment in China

According to a report in the May 5 BusinessKorea Beijing time, as the subsidies on Chinese auto makers will end at the end of next, South Korea The battery Manufacturers are increasing investment in China. The subsidy policy is aimed at cultivating its battery industry in China, so as to compete with international rivals. There are signs that the Chinese market will once again to the LG chem, Samsung SDI and SK Innovation South Korea open battery manufacturers.

According to the battery industry sources, some Chinese auto makers are battery manufacturers to negotiate with South Korea, to use their products.

"Korean battery manufacturers are taking the carmaker inquiries. This is because, with China's electric car subsidy policy will end at the end of 2019, auto makers need to prepare for their new model development, "said a south Korean battery company executives.

Since 2015, South Korea three battery manufacturers began to operate in China factory, for saic, yutong, fukuda and baicPower battery. However, since June 2016, the Chinese government will Korean battery left out of the subsidy program. Since then, South Korea battery manufacturers basically lost the Chinese customers.

However, as China plans to completely cancel subsidies for electric cars in 020, South Korea battery maker again ushered in the opportunity. Supply batteries to Mercedes and general motors, has been proved that the South Korean company in terms of price, performance and stability of competitiveness. In recent years, the public also choose South Korean companies as below an electric car battery supplier. South Korean industry experts said that China's auto manufacturers seeking to export cars abroad, so they will have no choice, only consider a south Korean company produces the battery, the battery once full of electricity can make electric cars more than 300 kilometers.

Therefore, battery manufacturers are recovery in China's investment in South Korea. Recently, SK Innovation change the company name from SK battery China holdings in order to "SK blue dragon energy", the company invested 86.4 billion won. Industry executives said: "to build a battery factory need to spend hundreds of billions of won. If SK a one-off investment funds, will bring huge economic burden for it. Therefore, SK will be diversification. This can be understood as a local production of preliminary measures."

In addition, Samsung SDI also said in its first-quarter earnings: "we will provide (China's) subsidies ended in 2020."LG chem has announced that it will invest 239.4 billion won, a battery materials production joint venture established in China.

About the battery technology is also very competitive. Mass production is expected to begin in the second half of this year, SK Innovation NCM811 batteries, can let the car with the material production of batteries to achieve the range of 500 km. LG chem plan production NCMA712 batteries in 2021, production NCMA battery in 2022. Samsung SDI is in full development aluminum nickel and cobalt (NCA) batteries.

According to market research firm SNEResearch supplied to electric vehicles, plug-in hybrid electric vehicle and hybrid electric vehicle battery in the first quarter of this year increased to 10.28 GWh, increased by 57% from a year earlier.

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