[Asia Economy Reporter Yoo Hyun-seok] Daewon Chemical is showing strong performance. It appears that the news that Hyundai Motor will equip the ‘Ioniq 5’ sold in China from the second half of this year with batteries developed by SK Innovation and still receive Chinese electric vehicle subsidies has influenced the stock price. As anti-Tesla sentiment grows in China, expectations are rising that the Ioniq 5, which caused a sensation in domestic pre-orders, will also perform well in the Chinese market.
As of 10:58 AM on the 25th, Daewon Chemical was trading at 3,165 KRW, up 21.03% (550 KRW) compared to the previous trading day.
On the previous day, an economic newspaper reported that Hyundai Motor decided to use pouch-type (thin film form) lithium-ion batteries designed and developed by SK Innovation for the Chinese sales of the Ioniq 5 (local name Ioniqer). These are essentially the same batteries used in the Ioniq 5 produced at Hyundai’s Ulsan Plant 1 and sold domestically and in Europe. The Chinese government is implementing a ‘domestic company preference’ policy that provides subsidies only for electric vehicles using domestically produced batteries.
The SK Innovation batteries that Hyundai will install in the Ioniq 5 this time will be supplied through a joint venture established by SK in China. Since a Chinese company holds 51% of the shares in this joint venture, the batteries are recognized as Chinese-made.
Daewon Chemical supplies eco-friendly seat materials to the Ioniq 5 and to American electric vehicle specialist Rivian, among others.
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