Samsung SDI has failed to receive certification from the Chinese government for subsidies on batteries for electric vehicles. It's not the only Korean battery maker that has failed to qualify as LG Chem is in the same boat. Failure to get certification means both companies will not be subsidized for car batteries starting 2018 so their cost of doing business in China goes up significantly, at least for electric cars.
The Ministry of Industry and Information Technology of China recently made the fourth announcement of companies that have been certified as battery makers that meet China's regulations. No Korean company is included in the list of 31 companies that have been certified, the report suggests that they were left out due to ministry not being satisfied by their compliance with regulatory rules as well as because of some issues with documentation. If Samsung SDI does not get a subsidy in China that's equal to half of the electric vehicle's total price it's going to be very hard for the company to compete with those who will be getting subsidies. It simply won't be able to match them on price even if it has the better product and regardless of the fact that Samsung SDI opened up an electric vehicle battery plant in Xi’an just last year.
