K-Battery to Build 11 Production Facilities in the U.S. by 2025, Expanding Market Share to 70%

[Sejong=Asia Economy Reporter Kwon Haeyoung] Domestic battery companies will build 11 large-scale battery production facilities in the United States by 2025. If investments proceed as planned, the share of domestic companies in the total battery production facilities in the U.S. is expected to expand from the current 10% range to around 70%.

The Ministry of Trade, Industry and Energy disclosed on the 12th data on global investments and market share status of domestic battery companies and battery material, parts, and equipment (SoBuJang) companies.

According to the Ministry’s analysis of the U.S. Department of Energy (DOE) announcement at the end of last year, among the 13 large-scale battery production facilities scheduled to be constructed in the U.S. by 2025, 11 are related to the three domestic battery companies (LG Energy Solution, SK On, Samsung SDI). Eight of these 11 projects were announced last year.

LG Energy Solution plans to establish joint factories with GM and Stellantis, SK On with Ford, and Samsung SDI with Stellantis, either through partnerships or by independently building facilities.

According to the Korea Battery Industry Association, the battery facilities of domestic companies currently operating in the U.S. account for about 10.3% of the total U.S. production facilities. If the previously announced plans proceed without setbacks, this share is expected to expand to 70% by 2025.

In the European Union (EU), where electric vehicle adoption rates are high, domestic battery companies that made early investments starting in 2017 already occupy most of the market. The share of domestic companies in battery production facilities within the EU is 64.2%, and last year, the sales market share of the three domestic battery companies in the EU was 71.4%. To maintain competitiveness in the EU, domestic battery companies plan to double their production facility capacity from the current 99.7 GWh to 204.1 GWh by 2025.

In China, which has the largest electric vehicle market, the market share of domestic battery companies is below 10%, showing relatively poor performance. This is because local Chinese companies occupy more than 80% of the market.

An official from the Ministry said, "Excluding China, domestic companies hold an overwhelming first place with a 52% global market share," and added, "Considering current market shares and investment plans, domestic companies are expected to continue their strong performance in the EU and the U.S. through 2025."

Domestic battery SoBuJang companies are also maintaining growth. Compared to 2017, the sales of companies producing the four major battery materials (cathode materials, anode materials, electrolytes, separators) increased by 2 to 8 times by 2020. Last year’s sales are predicted to have increased by more than 20% compared to the previous year.

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