CCM: SG Automotive Group cooperates with Samsung SDI: doubtful product marketing 10-11-2016

On 7 Sept., 2016, Liaoning SG Automotive Group Co., Ltd. (SG Automotive Group) announced that it would establish Ruichi New Energy Power System (Dalian) Co., Ltd. (Ruichi New Energy) jointly with Neusoft Ruichi Automobile Technology (Shanghai) Co., Ltd. (Neusoft Ruichi) and Samsung SDI Co., Ltd. (Samsung SDI), covering the production and marketing of power Li-ion battery pack and charging device used in alternative energy vehicles. 



Source: Baidu


It is believed that the registered capital of Ruichi New Energy amounts to USD14.97 million (RMB100 million), in which SG Automotive Group invested USD5.24 million (RMB35 million), Neusoft Ruichi invested USD7.49 million (RMB50 million), and SDI invested USD2.25 million (RMB15 million). 


What’s worth mentioning is that Ruichi New Energy is closely connected with enterprises from Japan and South Korea. Except for Samsung SDI which is a South Korean enterprise, Neusoft Ruichi is actually a Sino-Japanese joint venture. 


The major shareholders of Neusoft Ruichi are Neusoft Corporation, Shenyang Furuichi Enterprise Management Centre (Limited Partnership), and Alpine Electronics (China) Co., Ltd. which is a sole-funded company established in Beijing by Alpine Electronics, Inc. 

 



However, since Samsung SDI has not been listed into the enterprise catalogue of Regulations on Vehicle Power Battery Industry, relevant downstream users (automakers) will unable to acquire national subsidy, imposing doubts on the marketing of the power Li-ion battery of the newly-built joint venture.


It is reported that, as early as April, 2016, Anhui Jianghuai Automobile Co., Ltd. has decided to terminate the manufacturing of the new type iEV6S because the use of 18650 ternary Li-ion battery provided by Samsung SDI makes it fail to acquire subsidy from the government. 


The insiders pointed out that influenced by the investigation on subsidy frauds, the national subsidy policies have not been issued. Therefore, domestic alternative energy vehicle enterprises may be rather discreet in selecting supporting power Li-ion battery. As to the marketing of the products from Ruichi New Energy (currently all its battery packs are manufactured by battery cells provided by Samsung SDI), it all depends on the policies to be issued and Samsung SDI needs to spare no efforts to get enlisted in that enterprise catalogue.

 

This article comes from China Li-ion Battery E-News 1609, CCM

 



About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.

 

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Tag: Li-ion battery

 

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