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SK Innovation hails Chinese EV subsidies

Economy 15:23 December 10, 2019

SEOUL, Dec. 10 (Yonhap) -- SK Innovation Co., a major energy and chemical company in South Korea, on Tuesday welcomed China's decision to give subsidies for new energy vehicles.

The Mercedes E-Class plug-in hybrid, powered by SK Innovation's batteries, is one of the vehicles recommended for Chinese government subsidies.

"We welcome the development as it paves the way for increased sales of electric batteries," an official of SK Innovation said. He asked not to be identified, citing policy.

The Chinese subsidies could give a boost to SK Innovation, which has built its first electric vehicle (EV) battery cell manufacturing plant in the world's largest EV market.

Meanwhile, LG Chem Ltd., South Korea's leading chemical company, did not make any official comment on the issue and declined to confirm whether its batteries are used in Tesla Model 3 vehicles.

Tesla Model 3 vehicles are on a list recommended for Chinese subsidies.

LG Chem said it has supplied batteries to more than 2.7 million electric vehicles, including those of GM, Ford, Renault, Volvo, Audi, Volkswagen and Daimler, as well as South Korea's largest carmaker, Hyundai Motor Co., and its smaller affiliate, Kia Motors Corp.

LG Chem operates electric vehicle battery plants in the United States, China, Poland and South Korea.

The subsidies, if implemented, would mark the first time since 2016 that China has given handouts for electric vehicles powered by South Korean batteries.

entropy@yna.co.kr
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