K-Battery Leads US Market Following EU... 11 of 13 New Investments in 2025
Domestic Companies to Increase Share of US Battery Production Facilities from 'Current 10% → 70% by 2025'
[Sejong=Asia Economy Reporter Kwon Haeyoung] Domestic battery companies will build 11 out of 13 large-scale battery production facilities to be constructed in the United States by 2025. If investments proceed according to this plan, 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 70%.
According to the Ministry of Trade, Industry and Energy on the 15th, LG Energy Solution will establish joint factories with GM and Stellantis, SK On will partner with Ford, and Samsung SDI will collaborate with Stellantis or independently build facilities.
Currently, the battery facilities of domestic companies 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 increase to 70% by 2025.
Domestic battery companies hold 64.2% of battery production facilities in the European market, where electric vehicle adoption rates are high. Last year, the sales market share of the three domestic battery companies in the European Union (EU) market was 71.4%. To maintain competitiveness within the EU, our companies plan to double the scale of production facilities from the current 99.7GWh to 204.1GWh by 2025.
However, in China, which has the largest electric vehicle market, the market share of domestic battery companies is below 10%, showing a sluggish performance. This is because local Chinese companies hold over 80% of the market share.
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An official from the Ministry of Trade, Industry and Energy stated, "Excluding China, domestic battery companies hold a 52% market share in the global market," and added, "Considering the current market share and investment plans, domestic companies are expected to continue performing well in the EU and the U.S. until 2025."
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