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Chinese Government to Give Subsidies to Cars Loaded with LG and SK Batteries
Ban on Korean EV Batteries Lifted?
Chinese Government to Give Subsidies to Cars Loaded with LG and SK Batteries
  • By Michael Herh
  • December 10, 2019, 11:25
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Electric vehicles (EVs) loaded with Korean batteries have been included in China's white list for subsidies for the first time since 2016.

Electric vehicles (EVs) loaded with batteries from LG Chem and SK Innovation were reportedly included in China's white list for subsidies. It is the first time since 2016 that EVs running on Korean batteries are included in the subsidy list.

The Chinese Ministry of Industry and Information Technology (MIIT) recently released a list of recommended vehicles powered by new and renewable energy. Vehicles on the list, which is called the "white list," are eligible for subsidies from the Chinese government.


The list included the Tesla Model 3 EV, which is known to be powered by LG Chem's cylindrical batteries. If a subsidy is awarded to the Tesla Model 3, the Chinese government will subsidize electric vehicles loaded with Korean batteries for the first time since the end of 2016.

The list also included Beijing Benz's E-Class plug-in hybrid electric vehicle (PHEV). This model is known to be loaded with batteries jointly produced by SK Innovation and Beijing Automobile Works and Beijing Electric.

The inclusion of vehicles with Korean batteries in the white list appears to be designed to revitalize the slumping Chinese electric car market, solve a shortage of battery supply, and accelerate the localization of foreign technology, local media outlets say. The amount of the subsidy has not been determined yet. The Chinese government said that the subsidy program will run only until the end of next year.

Since January 2016, the Chinese government has maintained a sort of non-tariff barrier against Korean batteries by not giving subsidies to EVs powered by them.