À̹ÌÁö È®´ë The Chinese government has once again excluded electric vehicles equipped with South Korean batteries from its subsidies list, turning down hopes of Korean lithium-ion battery manufacturers to expand business in the neighboring country where demand for green cars is burgeoning.
According to multiple industry sources on Tuesday, car models loaded with batteries manufactured by Korean suppliers have been excluded from the list of new energy vehicles qualifying for subsidies recently released by China¡¯s Ministry of Industry and Information Technology. The list - which is the third of its kind - newly included 304 models by 94 manufacturers but it did not include a single model quipped with Korean batteries.
An unnamed official from Korea¡¯s battery industry said that the latest development suggested that there is no viable market for Korean batteries in China where subsidies account for half of the car sale price.
The news comes as unexpected for many battery manufacturers in Korea that have had high hopes that the models fitted with Korean batteries would qualify for the Chinese government¡¯s subsidies following an official move to end diplomatic dispute between the two countries last year after months of tense relations caused by Seoul¡¯s deployment of U.S. anti-missile system.
The disappointment has also followed after Chinese State Councilor Yang Jiechi reconfirmed the conciliatory gesture during his visit to Korea late last month as President Xi Jinping¡¯s envoy by saying that China would end all retaliatory measures against Korea as soon as possible. His comments immediately raised hopes that electric car models with batteries manufactured by Korea¡¯s Samsung SDI Co. and LG Chem Ltd. would be included in the subsidy list this time after they were excluded in December, 2016.
Market observers, however, noted that the situation seems direr and that it may take longer for Korean battery manufacturers to enter the vast market. It may also be tough for them to receive government approval and win orders, they said.
Korean battery manufacturers have been moving swiftly to resume business in China following the normalization of bilateral relations between the two countries. SK Innovation Co. has recently set up a battery-related entity in China to prepare for the possibility that the Chinese government would lift its regulation on Korean-made batteries. The company set up a booth at Beijing International Automotive Exhibition to promote its battery business in China.
By Lee Dong-in and Lee Eun-joo
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]