Making joint ventures with Korean companies to advance overseas
Chinese batteries are rapidly infiltrating the domestic electric vehicle market. There is a perception that Chinese products are inferior in quality, but the proportion of installed products continues to rise. Chinese battery makers are moving to set up production bases in Korea to get rid of the ‘made in China’ label and circumvent the US Inflation Act ( IRA ).
According to the automobile industry on the 30th, Hyundai Kona Electric, Kia Niro EV , Ray EV (to be released), and KG Mobility EVX are all equipped with Chinese batteries. Tesla Model Y RWD (rear wheel drive) and Mercedes-Benz EQE are also equipped with Chinese batteries.
Usually, ternary (nickel, cobalt, manganese) lithium-ion batteries are installed, but recently, lithium iron phosphate ( LFP ) batteries , which are evaluated one level lower, are also increasing. Kia Ray EV, Tesla Model Y RWD , and KG Mobility Torres EVX
, which are scheduled to be released in September, will each use토토사이트 LFP batteries from CATL and BYD in China . Hyundai Motor’s Casper Electric (tentative name) to be released early next year will also be equipped with CATL LFP batteries. The downside of LFP batteries is their low energy density. However, the structure is stable, so the possibility of fire is low compared to the ternary system, and the price is cheap because it is made of common materials. Recently, LFP batteries with increased energy density are also being developed one after another. In general, the higher the energy density, the longer the driving range of an electric vehicle.
Chinese battery companies have also started preparations for production in Korea. According to a Bloomberg report, Chinese and Korean companies have decided to build five new factories in Korea with a total joint investment of 5.1 trillion won (about $4 billion).
BYD establishes a battery joint venture with KG Mobility. The size and location of the factory are unknown, but it aims for mass production in January 2025. Ningbo Ronbei New Energy Technology decided to build a ternary precursor battery factory with an annual capacity of 80,000 tons in Saemangeum, North Jeolla Province. The company said, “Products produced in Korea meet the requirements for key minerals required by the IRA ,” and “can enjoy tariff benefits when exporting to European and American markets.”
China’s largest battery precursor company Gerinmay decided to establish a joint venture with SK On to produce battery materials in March. Huayou Cobalt, the world’s No. 1 cobalt producer, decided to carry out a joint venture with POSCO Future M earlier this year to produce precursors and high-purity nickel raw materials.
The precursor is a raw material for the cathode active material, which is the core material of lithium batteries. The performance of the precursor is so important that it affects the overall battery performance.
Chinese companies mass-produce these precursors in Korea and supply them to Korean battery companies such as LG Energy Solutions, Samsung SDI , and SK On, and the batteries produced in this way are installed in electric vehicles made by Tesla, GM , Hyundai Motors, and Volkswagen.