Korean Battery 3 Companies to Produce Batteries for 4 Million Electric Vehicles in the US Alone in 5 Years...

LG, SK, Samsung Confirm US Factory Expansion and New Plant Plans
Total Production of 323 GWh Around 2025 for the Three Companies
Enough for 4 Million Electric Vehicles
Supply Shortage Expected to Worsen Due to High Demand for Trucks and Large Vehicles

Prototype of GMC Hummer to be released as an electric pickup truck

[Asia Economy Reporter Choi Dae-yeol] As Samsung SDI formalizes its entry into the U.S. by building a joint factory with Stellantis, all three major Korean battery companies will have established local production systems in the U.S. around 2025. If the plans proceed as targeted, the combined annual production capacity of the three Korean companies in the U.S., including joint factories, will reach 323GWh in five years. Simply put, this amount matches the battery usage of all electric vehicles sold worldwide this year.

According to each company's announcements, LG Energy Solution plans to build two joint factories with General Motors (Ohio and Tennessee plants, each with an annual capacity of 35GWh) and a recently decided joint factory with Stellantis (40GWh). The joint factories with GM are under construction, aiming to start operations next year and the year after. In addition, there is the existing Holland plant in Michigan (5GWh), and although the operation type and location have not yet been decided, the plan to build another 35GWh-scale factory has been confirmed. LG aims to increase its annual production capacity in the U.S. to 150GWh by 2025, which is more than 70 times the current level.

SK On is undergoing large-scale facility expansion procedures centered on its joint factory with Ford. The SK-Ford joint factories (Tennessee and Kentucky plants combined) target commercial production of 129GWh around 2025. Alongside this, SK is in the final preparation stages to start commercial production of its previously planned Georgia plants 1 and 2 (9.8GWh and 11.7GWh respectively) by the end of this year and next year. SK On is also expected to raise its production capacity to about 150GWh annually within the next 5 to 6 years.

Ford's electric pickup truck F-150 Lightning prototype

Samsung SDI is entering the U.S. market for the first time by partnering with Stellantis. Although specific construction schedules have not been disclosed, it has firmly set a goal to produce 23GWh of battery cells and modules annually by 2025. Considering local demand, there is also the possibility of increasing this to 40GWh annually in the future. Unlike LG and SK, Samsung SDI does not have a cell factory?the most basic unit of batteries?in the U.S. Currently, it imports cells from factories in Korea or Hungary and assembles them into packs locally to supply to domestic automakers.

When combining the production capacities of LG, SK, and Samsung’s facilities planned in the U.S. in 5 to 6 years, the total is about 323GWh. According to SNE Research data, the battery usage in electric vehicles sold worldwide last year was about 143GWh, so this planned capacity far exceeds that.

Based on electric vehicle sales, battery usage reached 162GWh from January to August this year, and if this trend continues, the total battery usage in electric vehicles for the entire year is estimated to be around 330GWh. This means that the volume of batteries produced by Korean companies in the U.S. in 2025 will be that large. This scale can supply about 4 million typical mid-sized electric vehicles currently sold, assuming each uses 80kWh of battery capacity.

Cybertruck displayed at Tesla store in New York

Electric Pickup Trucks with High Demand in the U.S. Use More Battery Than Small and Mid-Sized Models
"Battery Supply to Meet 85% of Demand by 2025... Shortage Expected Until 2030"

However, in the U.S., electric vehicle demand is expected to grow rapidly mainly for large vehicles such as pickup trucks and commercial vehicles, so the actual number of finished vehicles that can be supplied may be much lower. Electric pickup trucks, which will be sold in earnest after next year, use about 120kWh of battery per vehicle, roughly 50% more than smaller models. The federal government’s fleet vehicles, which are prioritized for electrification, are also large van types that consume a lot of battery capacity.

Korean battery companies are aggressively expanding their factories in the U.S. because the United States-Mexico-Canada Agreement (USMCA) has increased the need to produce finished vehicle parts locally. Batteries, as a core component of electric vehicles, are receiving strong support from the federal government under President Joe Biden’s administration to expand electric vehicle adoption, so the electric vehicle and battery markets are expected to grow rapidly.

Although battery production is increasing rapidly, demand is growing even faster, and supply shortages are expected to become serious starting in 2025. According to local reports, Bank of America (BoA) forecasts that battery supply will meet about 85% of demand around 2025, with shortages continuing until 2030. Korean companies, along with Panasonic and Tesla?the largest battery makers in the U.S.?have steadily expanded their facilities, and companies like Toyota and CATL have announced plans for new battery factories in the U.S., indicating that local battery shortages are unlikely to be resolved easily in the near future.

The joint venture Ultium Cells, established by LG Energy Solution and General Motors, is building a joint factory in Ohio, USA.

Electric Vehicle Battery Factory Built by SK On in Georgia, USA

This content was produced with the assistance of AI translation services.