(Seoul/Shanghai Comprehensive News) Chinese companies are competing to invest in the Korean battery industry. It plans to use South Korea as a portal to enter the US market and avoid the United States' rules set by the United States to weaken China's participation in electric vehicle supply chains.
Comprehensive Bloomberg and Reuters reported that China -Enterprise and South Korean partners have announced that in the past four months, they have announced that they have invested about 5.1 trillion won (about S $ 50.03 billion) in five new battery factories in South Korea.South Korean officials said that at least one local government is negotiating with Chinese enterprises on more projects.
Chinese and Korean enterprises try to use the free trade agreement between South Korea and the United States to make batteries in South Korea, and then install electric vehicles manufactured in the United States to obtain a preferential discount on tax reduction policy under the United States.
In August 2022, the US House of Representatives passed the reduction of inflation. It stipulates that enterprises shall not contain any battery components manufactured or assembled by "attracting foreign entities".The bill aims to reduce its dependence on Chinese batteries.
The US Department of Finance has not clearly defined what is "attracting attention from foreign entities" and how related rules will be applied.An analyst at Hyundai Motor Securities believes that because the details have not yet been clear, the operation of the Korean -China joint venture battery company may become complicated.
Nevertheless, Chinese enterprises are still actively seeking cooperation with Korean partners.Ningbo Rongbai New Energy Technology announced last week that it was approved to invest in the construction of a three -dollar front -drive body and supporting sulfate production base of 80,000 tons of production.Ningbo Rongbai said that in South Korea's products that meet the United States to reduce inflation, the relevant requirements for qualified key minerals are required, and the export of the European and American markets can enjoy tariff policies.
Chinese companies lead the global battery and battery material supply chain, producing cathode, anode and front -drive body for the three major electric vehicle battery manufacturers in South Korea.The three companies LG New Energy, Samsung SDI and SK ON provide batteries for electric vehicle manufacturers such as GM, Tesla and Volkswagen.
