Possible loophole? Geely to use LG batteries made in China
Geely may have found a loophole in the protectionist laws surrounding Chinese subventions, which only allow for vehicles with batteries made in China.
According to the Wall Street Journal, Geely will be supplying vehicles from their brands Volvo and Lynk & Co with Korean batteries produced in China. The automobile manufacturer has set up a subsidiary company named Zhejiang Henguyan, who will be producing batteries designed by LG Chem under license, to facilitate the process.
LG Chem also helped Zhejiang Henguyan set up a production line. Other foreign manufacturers have also begun complaining to the Chinese government, as they claim to be treated unfairly, as they do not have the possibility to do what Volvo and Lynk & Co are capable of thanks to their Chinese owner Geely.
wsj.com (paywall), electrek.co
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