U.S. EV Market Plunges 30%... All Three Major Korean Battery Firms See Negative Growth in January

In January 2026, the U.S. electric vehicle market saw a significant decline, resulting in all major Korean battery companies operating in the U.S. experiencing negative growth. The market share of K-batteries in the global market dropped to 12%.

On March 6, SNE Research, a secondary battery market research firm, announced that the total battery usage in electric vehicles, plug-in hybrid vehicles, and hybrid vehicles registered worldwide in January 2026 was 71.9 gigawatt-hours (GWh), representing a 10.7% increase compared to the same period last year.

During this period, the combined market share of the three major Korean battery companies—LG Energy Solution, SK On, and Samsung SDI—fell by 4.3 percentage points year-on-year to 12.0%. LG Energy Solution’s share declined from 15.6% to 13.8%, while SK On (from 4.5% to 3.2%) and Samsung SDI (from 3.2% to 2.2%) also saw decreases.

In January 2026, LG Energy Solution’s supply volume decreased by 1.9 percentage points. Similarly, SK On and Samsung SDI posted sharp declines of 21.3% and 24.4%, respectively. All three major Korean battery firms experienced significant decreases.

SNE Research analyzed that “the primary cause was the 30.2% plunge in electric vehicle sales in the U.S. market.” In the U.S., demand fell sharply after electric vehicle purchase subsidies under the Inflation Reduction Act (IRA) ended at the end of September 2025.

In contrast to the three major Korean battery companies, Japan’s Panasonic increased its supply volume by 22%, with its market share rising from 3.9% to 4.3%. Panasonic is streamlining its North American production lines to reduce dependence on Tesla and is engaging in new collaboration discussions with North American finished car manufacturers.

During the same period, China’s CATL saw its installed volume surge by 25.7%, with its market share expanding to 45.2%. CATL has broadened its base by supplying not only to major Chinese electric vehicles but also to a range of global automakers such as Tesla, BMW, Mercedes-Benz, and Volkswagen.

The substantial increase in battery installations across China, Europe, and other emerging markets, along with the trend of growing average battery capacity among Chinese battery firms, appears to have contributed to the rise in market share.

SNE Research stated, “In 2025, sales expansion driven by price was the key growth engine for the market,” adding, “This trend is expected to continue in 2026, but as regional policies, regulations, and trade environments are simultaneously strengthened, the market is likely to shift from a simple focus on expanding low-priced volumes toward a phase where price competitiveness, product value, and supply chain stability are more balanced.”

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