Korean battery manufacturers are rushing to China as the Chinese electric vehicle (EV) market is showing rapid growth. The Chinese government decided to extend the subsidies for those purchasing EVs, which were going to expire in early 2015.
Samsung SDI is planning to set up joint-stock companies with Anqing Huanxin Group and a state-run enterprise located in Shanxi Province by April. SK Innovation has already completed the establishment of a joint corporation, back in July last year, with Beijing Automotive Industry holding. LG Chem is going to set up an additional plant in Nanjing, where it has run EV battery pack manufacturing facilities.
The Chinese government is planning to increase the supply volume of EVs and hybrid cars in the local market to 0.5 million units by 2015 and five million units by 2020. It has also provided subsidies for these types of cars, since September last year, in an effort to slow down the pace of air pollution in major cities.
Specifically, a consumer purchasing an EV in China is given 60,000 yuan (US$9,761.34), and a hybrid car purchase nets you 35,000 yuan (US$5,694.11). The local demand for EVs is likely to show consistent growth with the government having decided to extend the policy.