WSJ report: Geely is using China-made Korean batteries for Volvo EVs
According to a new Wall Street Journal (WSJ) report, Chinese automaker Geely’s Volvo electric vehicles (EVs) are using Korean batteries which are being manufactured in China.
The report has revealed that Geely has, for its Volvo electric vehicles, found a workaround for averting China’s EV-related protectionist laws. The workaround has enabled Geely to circumvent China’s stringent restriction which requires that Chinese EVs should be powered by Chinese batteries.
As per the WSJ report, a subsidiary named Zhejiang Henguyan has been set up by Geely for licensing and manufacturing exactly the same high-end batteries as manufactured by LG Chem in Korea.
The report is based on the information shared by a Geely spokesman who has confirmed that the company inked a deal in late 2017 “to license LG battery technology.” The spokesman has also told WSJ that Geely’s Zhejiang Henguyan subsidiary has set up a battery production line with help from LG Chem.
Furthermore, the Geely spokesman has also disclosed that the batteries produced by Zhejiang Henguyan will not only be used in Geely’s Volvo EVs, but also in electric cars manufacturing by Lynk & Co., which is another Geely brand. Asserting that the workaround found by Geely “isn’t the use of a loophole or a back channel,” the spokesman said that other companies “with the proper foresight could realize and create the same deal if required.”
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