Korean battery majors actively preparing to lead global market in 2023

Logos of Korean battery majors [Sources : LG Energy Solution, Samsung SDI, SK on]

South Korea’s three battery majors LG Energy Solution, Samsung SDI and SK on are doubling down on their expansion in North America with efforts to develop cylindrical batteries and add more partnerships with carmakers in a heated race to lead the global market.

According to industry sources on Wednesday, the three battery makers are accelerating preparations for global businesses next year with focus on the North American market ahead of a full-scale implementation of the Inflation Reduction Act in the U.S.

“Competition will be intensified between companies seeking expansion to achieve their goals in North America. With the implementation of IRA, Korean batteries will be able to grow,” said an industry official.

LG Energy Solution eager for growth in the North American market is expected to focus more on cementing its leadership. The first battery plant in Ohio in a joint-venture with General Motors started commercial operation recently, and the second plant in Tennessee will become fully operational next year. Combined output of the two plants reaches 70 GWh, the largest among all Korean makers.

Samsung SDI, which has not been active in investment in North America, will likely speed up efforts to penetrate into the market. It announced a plan to build a plant in Indiana with Stellantis, and industry experts expect additional investment in North America.

SK on is building the second plant in Georgia for completion next year. The facilities will be capable of producing 10 GWh of batteries that would be entirely supplied to Volkswagen.

The three rivals will be spurring efforts to develop cylindrical batteries as well.

Cylindrical batteries [Source : LG Energy Solution]

LG Energy Solution and Samsung SDI have already unveiled their plans to develop next-generation cylindrical batteries for market dominance. Tesla has been using cylindrical batteries, but more are considering using them in North America, including GM and BMW.

New joint ventures and supply contracts will likely increase. Global carmakers including Toyota, Renault, Ford, BMW and Volvo have been in close contact with Korean battery makers for related discussion.

“Decisions for some of these projects will be out from as early as the first quarter of next year. Various JVs will be formed also in 2023,” said an official from the battery industry.