[Biz View] The US Targets Electric Cars, the Whole World Competes

US Electric Vehicle Imports Reach $5.2 Billion Last Year, Triple the Previous Year
New Models from Tesla, GM, Ford, Rivian Follow One After Another
Market Opens for Electric Pickup Trucks with High US Demand
Automakers Respond by Converting Existing Combustion Plants and Establishing New Facilities

Last November, U.S. President Joe Biden visited GM Factory Zero in Detroit, USA, and drove the GMC electric pickup truck Hummer EV. U.S. Senators who visited together took photos.

[Asia Economy Reporter Choi Dae-yeol] Last year, the United States' electric vehicle (EV) import value reached $5.215 billion, more than tripling compared to the previous year. It is estimated to be the third highest among individual countries, following Germany and Belgium. In terms of annual growth, it ranks the highest among major EV importing countries. In 2020, the U.S. ranked fifth in EV import value by country, following the Netherlands, Germany, Belgium, and France.

Excluding Tesla, which is considered the world's largest EV manufacturer, the U.S. still lacks a sufficient domestic EV production base, resulting in a large volume of imports from abroad. As of last year, the two major EV import countries for the U.S. were Germany and Mexico. Imports increased as European brands like Volkswagen, Audi, Porsche, and American brands such as Ford, whose EV production is based in Mexican factories, sold many EV models. Although Tesla models still dominate the top sales rankings, the overall market expansion has led to a steady increase in EVs from other manufacturers as well.

Electric pickup truck R1T from Rivian, a US electric vehicle startup funded by Amazon and Ford. It was displayed in New York Times Square at the time of its IPO in November last year.

The U.S. is considered one of the world's three largest automobile markets alongside Europe and China. However, when it comes to EVs specifically, it is often viewed as lagging behind these two regions. Both the government and consumers have shown less awareness of environmental regulations addressing climate change, which led suppliers, i.e., automakers, to focus more on traditional internal combustion engines rather than EVs. The strong preference for larger vehicles compared to Europe and China is also cited as a factor that slowed the pace of EV adoption in the past. Many global automakers developed and launched EVs mainly in the small to mid-size segments.

Now, the tide has turned. The EV expansion drive initiated after President Joe Biden took office has gained momentum, and supply chains to meet local demand, including EV production infrastructure, are gradually being established. Electric vehicles aligned with the electrification strategies of American automakers such as General Motors (GM) and Ford are expected to be introduced continuously over the next two to three years starting this year. Startups aiming to become the "second Tesla" also view large-scale mass production as a matter of time.

There is also interest in how electrified models of pickup trucks, which have uniquely high demand in the U.S., will be received in the market. The U.S. market sells over 10 million commercial vehicles annually, including pickup trucks. Starting with Rivian's R1T pickup truck launched at the end of last year, Ford's F-150 Lightning is set for customer deliveries this year. Following that, GM Chevrolet's Silverado EV, Tesla's Cybertruck?which has faced multiple delays?and traditional commercial vehicle brand Ram plan to release new electric pickup trucks. Ford initially planned to produce about 40,000 units of the F-150 Lightning annually but doubled production due to overwhelming orders. Pre-orders last year alone reached 200,000 units.

Tesla's Gigafactory under construction in Austin, Texas, USA, photographed in October last year

Following Local Brands like GM and Ford, Hyundai and Volkswagen
Foreign Automakers Establish Local EV Production Systems
EV Startups and Battery Companies Also Set Up Mass Production Systems

Most major global automakers, as well as local brands, anticipated the EV boom in the U.S. early on and have been preparing sales networks and local production systems. The market's growth potential and the Biden administration's encouragement to produce EVs domestically have influenced this trend. European brands such as Volkswagen and Mercedes-Benz are considering converting or replacing existing internal combustion engine vehicle factories, and Nissan has also decided to modify its existing plant facilities.

Toyota has decided to build a battery factory, a core component of EVs, near its U.S. vehicle assembly plants. South Korea's top three battery manufacturers (LG Energy Solution, SK On, Samsung SDI), which hold high market shares globally, have finalized large-scale investment plans for joint ventures or standalone factories in the U.S. The world's largest battery maker, China's CATL, which could face trade disputes with the U.S., has also decided to build a battery plant in the U.S. This reflects the judgment that the U.S. EV market will play a crucial role in leading the future automotive market.

The Hyundai Ioniq 5 exhibited at the Washington Auto Show held last month. Sales began in the United States at the end of last year.

Hyundai Motor Group confirmed its plan last year to directly produce and sell EVs in the U.S. and has been conducting internal reviews since. It is reported that the group is weighing whether to utilize existing vehicle assembly plants (Hyundai Alabama, Kia Georgia) or build new factories, as well as deciding on the models and timing for local production and sales.

If Hyundai Motor Group establishes EV production facilities in the U.S., it would be the fourth overseas plant after China, the Czech Republic, and India. The newly built plant in Indonesia was also constructed with future EV production in mind. Considering local market conditions in neighboring countries and domestic and international labor union factors, the decision is complex and not easily concluded. Hyundai plans to finalize its local production plans within this year.

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