Expected to Account for over 50% of EV Battery Supply
The U.S. automotive lithium battery market grew from US$1 billion in 2017 to US$1.39 billion in 2020. The size is expected to reach US$1.99 billion in 2023 and US$2.8 billion in 2025.
The Joe Biden administration is making a lot of efforts to popularize electric vehicles (EVs) against climate change and the United States’ portion is likely to continue to increase in the global EV demand. Tesla, the largest EV maker in the world, is not losing its popularity while GM and Ford are about to release a series of EVs. In addition, Toyota, Hyundai and Volkswagen are planning to supply more EVs in the United States.
According to market research firm IBISWorld, Panasonic batteries were the most widely used automotive battery in the United States last year. The company supplied batteries for use in the Tesla Model 3, S, X, and accounted for 46 percent of the U.S. market. LG Energy Solution came in second with 11 percent and the market shares of EnerSys, A123 and Samsung SDI stood at less than 4 percent.
At present, EV battery plant expansion in the United States is being led by LG and SK. LG recently announced that it would increase its local manufacturing capacity by a factor of approximately 30 to 145 GWh a year, which is equivalent to two million EVs. SK is currently building its second plant in the United States, where the company has invested approximately three trillion won so far and is planning to increase it to at least five trillion won.
According to industry sources, South Korean companies are expected to account for more than 50 percent of the EV battery supply in the United States in the near future. “LG Energy Solution and SK innovation are expected to make up 41 percent and 12 percent of the U.S. EV battery manufacturing capacity in 2025,” one of them explained, adding, “The ratio of Panasonic is estimated to fall to 19 percent.”