Wednesday, October 23, 2019
Is Samsung SDI Affected by Anti-Korea Sentiment in China Due to THAAD?
Samsung SDI Battery in China
Is Samsung SDI Affected by Anti-Korea Sentiment in China Due to THAAD?
  • By Cho Jin-young
  • July 12, 2016, 02:00
Share articles

Samsung SDI electric vehicle battery factory in Xi’an, China.
Samsung SDI electric vehicle battery factory in Xi’an, China.

 

A Chinese carmaker has stopped producing an electric vehicle (EV) equipped with Samsung SDI batteries. Industry watchers are paying attention to whether Samsung SDI batteries failed to get official nod from the Chinese government due to an anti-Korea sentiment caused by the Terminal High Altitude Area Defense, or THAAD, system.

According to a report by Bloomberg and Samsung SDI on July 11, Anhui Jianghuai Automobile Co. (JAC) has recently stopped producing the iEV6s sport utility vehicle (SUV) featuring Samsung SDI's circular batteries.

JAC said the decision was made because the company’s batteries failed to receive approval from the Chinese government. Samsung SDI currently supplies circular batteries to the iEV6s, the next flagship model of JAC.

Industry sources believe that JAC took a preemptive action on concerns it may be stuck with unsold stock if the model is disqualified from government subsidies because the Korean supplier isn’t on a list of approved vendors, though it hasn’t come to a definite decision yet. However, they are also paying attention to whether the anti-Korea sentiment has led to the decision due to the THAAD system.

An official from Samsung SDI said, “JAC has decided to stop producing the model instead of changing the model. It means that the Chinese carmaker can resume manufacturing the iEV6s when Samsung SDI makes it onto the government’s approved list. We will prepare for the fifth approval review without a hitch.”