(JW Insights) Aug 25 -- China's BYD and South Korea's KG Mobility are in talks to jointly build an electric vehicle (EV) battery plant in South Korea, reported Reuters on August 23.
The Chinese battery and EV maker and the South Korean automaker hope to secure stable battery supplies through the venture, according to the source with direct knowledge of the matter, declining to be identified due to the sensitivity of the matter, reported Reuters.
Bloomberg said the factory aims to start mass production in January 2025, citing unnamed industry sources.
Their venture would be the first joint factory between a Chinese battery cell maker and South Korean carmaker in South Korea.
Analysts said BYD's entrance to South Korea, home to the world's three big battery producers, could help expand its customer base, reported Reuters.
"It is indeed a significant event, a major cell maker like BYD having production capacity in South Korea, where local cell makers have not yet mastered technology to offer low-cost batteries BYD could offer to automakers," said Kang Dong-jin, an analyst at Hyundai Motor Securities.
Chinese battery materials firms are ramping up investment in South Korea, announcing projects worth billions of dollars this year to try to circumvent U.S. electric vehicle (EV) tax credit rules aimed at lowering reliance on Chinese supply chains, said the Reuters report.
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