The United States restricts the purchase of batteries by Chinese companies, and South Korea is the first to ask for an exemption
This article is original, please do not plagiarize and repost, offenders will be investigated!
With the rapid development of China's industry, almost all industries will become the target of US attention. From chips to communications, and then to today's new energy vehicle batteries.
The U.S. has implemented a restrictive rule that from January 1, 2024, U.S. companies will not be able to receive subsidies of up to 7,500 yuan if they buy batteries from Chinese companies, which has led to a reduction in the number of cars eligible for the subsidy from 43 to 19. Unexpectedly, the United States restricted the purchase of batteries from Chinese companies, and South Korea was the first to be untenable and asked for an exemption.
U.S. battery restrictions for China.
China's new energy vehicle industry is developing rapidly, with data showing that by 2023, China's motor vehicle exports will reach 4.91 million units, of which 1 in 4 vehicles is a new energy vehicle. This shows that China's export volume of new energy vehicles has reached a considerable proportion.
In addition, China is also the world's largest lithium producer and has the most important lithium resources for the production of electric batteries. This provides a huge advantage for China's new energy vehicle industry, allowing it to have a complete industrial chain in the field of electric batteries.
Because of this, the United States began to feel anxious and made small moves behind the scenes without being able to compete directly.
Entering 2024, the United States has implemented a rule that restricts American companies from purchasing batteries from Chinese companies, otherwise they will not be able to receive a subsidy of 7,500 yuan. Initially, 43 cars were eligible for the subsidy, but the number dropped to 19 after the restrictions came into effect.
During 2023, Chinese companies such as CATL and Guoxuan Hi-Tech went to the United States to build factories and cooperate with American companies to build battery production lines, but they were subject to multiple scrutiny in the United States. Although it was finally released, it is enough to see that the United States is vigilant about the development of China's new energy vehicle industry.
The United States is the most traditional power, GM and Ford have a history of 100 years, but they have missed the opportunity in the field of new energy vehicles. China has taken the lead in providing and is developing rapidly, the United States is now rushing to intervene in the restrictions, and South Korea is in a quagmire.
South Korea requested a derogation.
South Korea is starting to shoulder this burden due to U.S. regulations restricting Chinese batteries. South Korea's Hyundai Motor Co) issued a statement to the United States, saying that China refines and produces 100% of the global total for spherical graphite and 69% of the global total, and that no other country will be able to replace China anytime soon from 2022. Finally, Hyundai asked for a temporary exemption from the United States.
Hyundai is of course in a hurry, as the U.S. restrictive regulations on Chinese batteries mean that South Korean automakers can no longer get enough batteries from China**, and if the status quo of the regulations persists for a long time, Korean automakers may face instability and pressure from the battery ** chain.
In fact, not only South Korean manufacturers, but also Tesla in the United States are increasing their purchases of battery components in China and stockpiling more materials ahead of a full lockdown in the United States. The question is: can the United States effectively block Chinese batteries?
Apparently impossible. What's more, China has mastered most of the core technologies such as lithium batteries, mining, and processing, and its market share cannot be replaced by the United States at will. CATL is the world's largest battery manufacturer, with a market share that surpasses South Korea's three major manufacturers, Samsung, SK and LG. Although Japan has a certain amount of battery technology, it cannot make waves.
The U.S. doesn't have a great electric battery industry on its own, and China is wrestling with its hands, which will only hinder its own development.
If you agree, please give a thumbs up and feel free to **, comment and share.