·The Korean industry pays attention to the new changes in the revision of the regulatory conditions for China's automotive power battery industry
The Ministry of Industry and Information Technology of the People's Republic of China recently announced a draft for the revision of the regulatory conditions for the automotive power battery industry. Among them, the standard for the annual production capacity of automotive lithium battery manufacturers has been raised to 8 billion Wh, which is nearly 40 times higher than before.
The industry said that the new standard is too high. If it is to meet the standard, it needs to invest 10 billion yuan. Only BYD (55.750, 0.06, 0.11%) and Ningde era companies are eligible for this standard. The amendment will have a negative impact on the establishment of joint ventures in China, Samsung SDI and LG Chem. The two companies have already produced batteries in China. The annual production capacity of Chinese factories is 2 billion to 3 billion Wh. To meet the revised standards, It is in fact difficult to achieve a 3-4 times increase in production capacity. However, the amendments removed the content of the standard as a condition for granting subsidies.
At present, the Korean battery industry is evaluating and analyzing the background and future impact of this amendment. There are observations that this amendment, in addition to protecting China's domestic industry, also has the intention of countering South Korea's deployment of the "Sade" system.
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