Chinese automaker Anhui Jianghuai Automobile has stopped the production of an electric SUV model that uses batteries manufactured by Samsung SDI. The automaker said that Samsung SDI batteries are not on the list of approved vendors, a fact which could lead to the SUV models being disqualified from government subsidies.

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Anhui Jianghuai Auto executive Wang Fanglong said that the company would resume the production of the iEV6s sports utility vehicle once Samsung SDI makes it to the list of government approved vendors. The iEV6s SUV costs 234,800 yuan (roughly $35,000) before subsidies, making it one of the most expensive electric car model in the country.

In a statement acquired by Bloomberg, Wang said, "We are cautious about selling iEV6s because of the huge policy risks. The policy may change any time."

Aside from Samsung SDI, another South Korean company, LG Chem was dropped from the list of approved vendors in China.

The two companies have expressed their concerns that being dropped from approved vendors could seriously hurt their respective consumer base. China is considered as a major market not only for traditional cars but also for hybrid cars. The two companies also said that they have already invested a considerable amount of resources to upgrade their EV battery production.

According to Korea Herald, since November 2015, Samsung SDI has delivered at least eight million battery cells, which should be sufficient enough to power 1,800 vehicles.

TagsSamsung, Samsung SDI, Samsung SDI China, Samsung SDI news, Samsung SDI battery, EV, EV cars