As South Korean battery manufacturers increase production in the United States, companies such as LG Energy Solution, Samsung SDI and SK On are flush with investment dollars and aggressively expanding capacity. This smart, strategic expansion comes at a time of tightening regulations against Chinese competitors. Consequently, these companies are well-positioned to capture the surging demand for electric vehicle (EV) batteries.
Photo by author LG Energy Solution and Samsung SDI recently made headlines for their announced plans to increase production facilities domestically. At the same time, SK On is significantly expanding its footprint in the U.S. market. Together, these initiatives are a clear sign of an aggressive effort to gain market share. They want to develop and reinforce relationships back home. We’ve been in this fight together to ensure a competitive, smart supply chain. Our hope is to strike the best balance possible to serve the needs of American automakers.
For Panasonic, a major Japanese technology company, this is a significant step. Lithium-ion battery production is no longer just a Central—or East—Asian endeavor to them. This change reflects a wider industry trend of re-shoring manufacturing to be closer to important markets. Panasonic’s recent foray into local production has only fueled the fire and created even more competition among battery manufacturers. They are all motivated to get a bigger piece of the action.
South Korean firms are moving at warp speed to stake their turf in the U.S. They’re booming in a culture that highly values local food production. Recent legislation to restrict Chinese battery manufacturers from participating in the American EV market has created further openings for these companies. Regulations are limiting the influx of Chinese competitors. Consequently, LG Energy Solution, Samsung SDI and SK On are ideally suited to service the burgeoning demand for EV batteries driven by consumer interest and government subsidies.
The genie is out of the bottle, and the regulatory landscape is changing very quickly. U.S. President Donald Trump’s spending legislation is making the wind, solar and electric vehicle tax incentives direct casualties. These incentives are making the market work for us, drawing investment to battery production and EV infrastructure alike. They further reward South Korean companies as they seek to establish their dominance in the marketplace.
At the recent InterBattery exhibition in Seoul on March 5, LG Energy Solution introduced a new, next-generation electric-vehicle battery pack. This additional announcement highlights their deep-rooted belief in innovation and advanced technology in battery manufacturing. This exhibition underscores the company’s technological capabilities and its intent to lead in the rapidly expanding EV battery sector.