Hyundai may source car
batteries from China amid political tension
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[February 08, 2017]
By Hyunjoo Jin
SEOUL
(Reuters) - Hyundai Motor <005380.KS> said on Wednesday it may procure
electric vehicle batteries from Chinese companies for a planned China
model after South Korean battery makers failed to make a list of
approved vendors last year.
The decision comes at a time of growing concern in South Korea that
Beijing may be retaliating over Seoul's decision to deploy a U.S.
anti-missile system. China argues the defense system could undermine its
security.
Hyundai Motor said it was now considering a Chinese battery for a
plug-in hybrid version of its Sonata sedan to be sold in China.
"Considering various factors in Chinese market and price
competitiveness, Hyundai Motor Company is also looking at cooperation
with Chinese battery suppliers," the company said in a statement to
Reuters.
It declined to comment on reports that its decision was due to tension
with Beijing over the U.S. Terminal High Altitude Area Defence (THAAD)
system.
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The
news came on the same day that South Korea's Lotte Group said Chinese
authorities have halted construction at a multi-billion dollar real estate
project in the northeastern city of Shenyang after a fire inspection - a move
that has also fueled concerns about retaliation.
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![](../images/020817pics/busine33.jpg)
The logo of Hyundai
Motor is seen on a steering wheel at its dealership in Seoul, South
Korea, December 15, 2016. REUTERS/Kim Hong-Ji
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Beijing last year declined to award certification to LG Chem Ltd <051910.KS> and
Samsung SDI Co Ltd <006400.KS>, both among the world's largest players,
potentially excluding them from state subsidies and eroding their price
competitiveness.
"As a company which has to sell vehicles in China, we have no choice but to
consider a China battery maker under the current conditions," said a Hyundai
source, who was not authorized to speak to the media and declined to be
identified.
The current Sonata Plug-In Hybrid, sold in South Korea and the United States,
uses a battery made by South Korea's LG Chem <051910.KS>.
Hyundai also said it now plans to launch the Sonata Plug-In Hybrid in China in
2018, a year later than previously planned, without elaborating on the reason
for the delay.
(Reporting by Hyunjoo Jin; Editing by Tony Munroe and Edwina Gibbs)
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