Hyundai may source vehicle batteries from China despite political tension

Hyundai Motor stated on Wednesday it might acquire electric automobile batteries from Chinese companies for a prepared China model after South Korean battery makers couldn’t make a list of authorized vendors last year.

The decision comes at a time of growing concern in South Korea that Beijing may be striking back over Seoul’s decision to release a U.S. anti-missile system. China claims the defense system could weaken its security.

Hyundai Motor stated it was now thinking about a Chinese battery for a plug-in hybrid variation of its Sonata sedan to be offered in China.

“Considering different factors Chinese market and rate competitiveness, Hyundai Motor is also looking at cooperation with Chinese battery suppliers,” the company stated in a statement to Reuters.

It refused to discuss reports that its choice was because of tension with Beijing over the U.S. Terminal High Altitude Area Defence (THAAD) system.

The news appeared the same day that South Korea’s Lotte Group said Chinese authorities have stopped construction at a multi-billion dollar real estate task in the northeastern city of Shenyang after a fire inspection – a move that has also fueled issues about retaliation.