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Competition for battery technology is also fierce. In the second half of this year, SK Innovation will begin mass production of NCM811 batteries, which will allow cars to achieve 500 kilometers of range. LG chemical plans to produce NCMA712 batteries in 2021 and mass production of NCMA batteries in 2022. Samsung SDI is working hard to develop nickel cobalt aluminum (NCA) batteries.
With subsidies for Chinese automakers ending at the end of next year, Korean battery manufacturers are increasing their investment in China. This subsidy policy in China aims to cultivate the battery industry in China and compete with international rivals.
There are signs that the Chinese market will open up again to Korean battery manufacturers such as LG Chemistry, Samsung SDI and SK Innovation.
According to battery industry sources, some Chinese automobile manufacturers are negotiating with Korean battery manufacturers to adopt their products.
"Korean battery manufacturers are receiving enquiries from manufacturers. That's because, as China's subsidies for electric vehicles expire at the end of 2019, automakers need to be prepared for their new model development, "said an executive at a Korean battery company.
Since 2015, Korea's three major battery manufacturers have been operating factories in China to supply batteries for SAIC, Yutong, Fukuda and Beiqi. However, since June 2016, the Chinese government has excluded Korean batteries from subsidized projects. Since then, Korean battery manufacturers have basically lost their Chinese customers.
However, with China planning to completely eliminate subsidies for electric vehicles by 2020, Korean battery manufacturers are once again facing an opportunity. Supplying batteries to Mercedes-Benz and General Motors has proven Korea's competitiveness in terms of price, performance and stability. In recent years, the public has also chosen Korea Companies as the battery supplier of its next electric vehicle. Korean industry experts say that Chinese automakers are looking to export their cars abroad, so they will have no choice but to consider using batteries made by Korean companies that can charge electric cars and drive more than 300 kilometers at a time.
Therefore, battery manufacturers in Korea are recovering their investment in China. Recently, SK Innovation changed its name from SK Battery China Holdings to SK Blue Dragon Energy and invested 86.4 billion won in the company. "Building a battery factory costs hundreds of billions of won," industry executives said. If SK comes up with investment funds at once, it will bring huge financial burden to them. Therefore, SK will diversify its investments. This can be understood as a preliminary step in localized production. "
In addition, Samsung SDI also said in its first quarter earnings: "We will prepare for the end of [China's] subsidy policy by 2020." LG chemical announced that it will invest 239 billion 400 million won to establish a joint venture of battery materials in China.
Competition for battery technology is also fierce. In the second half of this year, SK Innovation will begin mass production of NCM811 batteries, which will allow cars to achieve 500 kilometers of range. LG chemical plans to produce NCMA712 batteries in 2021 and mass production of NCMA batteries in 2022. Samsung SDI is working hard to develop nickel cobalt aluminum (NCA) batteries.
Batteries supplied to electric vehicles, plug-in hybrid vehicles and hybrid vehicles increased to 10.28 GWh in the first quarter of this year, up 57% from the same period last year, according to market research firm SNE Research.
Source: Phoenix Network Technology