Pyongyang battery storage subsidy policy

Why do Korean cars get subsidies for NCM batteries?

The decision is based on factors such as battery energy density, recycling value, and charging speed. As a result, subsidies for Korean vehicles using NCM (Nickel Manganese Cobalt) batteries, known for their high energy density and recycling value, will see an increase.

How will South Korea subsidize electric vehicles?

Starting this year, the South Korean government will implement varying subsidies for domestically produced electric vehicles and imported electric vehicles. The decision is based on factors such as battery energy density, recycling value, and charging speed.

How do battery subsidies work?

The key factor in new subsidy payment conditions is the energy density of batteries. The formula involves granting higher subsidies for batteries with greater energy density, using the battery cells as the basis. Subsidies remain unaffected as long as the battery density exceeds 500Wh.

What is Korea's new EV subsidy policy?

The new EV subsidy policy is in response to price cuts on Tesla’s Model Y and BYD’s models, which use lower-cost LFP batteries. The revised EV policy is Korea’s attempt to give domestic automakers an edge as they look to level the playing field.

How much does Korea's new EV policy cost?

According to The Korea Herald, the new plan sets the maximum grant at around $4,800 (6.5 million won). That’s $225 (300,000 won) less than last year’s policy. The vehicle’s range, price, and battery type determine its eligibility. The last part, the type of battery, has become a focus of Korea’s new EV policy.

How much do Korea's EV subsidies cost?

The report notes Tesla’s Model Y accounted for about $24 million of Korea’s subsidies granted last year alone. Meanwhile, subsidies for Hyundai and Kia EVs, like the IONIQ 5 and EV6, remain mostly unchanged. The IONIQ 5 and EV6 Long Range have 458 km (284 mi) and 475 km (295 mi) range, respectively, with prices around $38,000 and $36,000.