Two Korean battery makers face further losses after cars using their lithium technology had their certification cancelled in China.
It comes after Samsung SDI and LG Chem both failed to meet the government’s standards for electric car batteries last year.
The Ministry of Industry and Information Technology (MIIT) cancelled certifications for five models using Samsung SDI and LG Chem batteries, according to Korean business website The Chosunilbo.
The five models were listed to be qualified for Chinese eco-friendly car’s subsidies on December 29, 2016.
Batteries from both companies failed to meet ‘The Standardized Requirements for the Automobile Power Storage Battery Industry’ (the fourth list) due to the non-satisfaction of capacity, released by the MIIT in June 2016.
The fourth list raised the standard for the annual lithium-ion capacity output from 0.2 GWh to 8GWh, as well as the supplier needing to be accident free, in reference to electric vehicle batteries, in the previous two years, according to The Chosunilbo.
Results of the new review of the fifth list conducted in December have not yet been released.