Concerns about over-supply in the Korean battery cell market may materialize if the demand for electric vehicles in the US continues to decline into next year.
A recent report by Korean credit rating agency, Korea Ratings, indicates that the decline in electric vehicle (EV) demand in the US market may lead to actual over-supply issues for South Korea’s top three battery cell manufacturers—LG Energy Solution, SK Innovation, and Samsung SDI—if trends continue. The report notes that new production facilities for these companies are expected to complete by 2027, coinciding with a forecasted decrease in front-end demand for EVs, resulting in lower operating rates and increasing cost burdens for these firms. The expected production capacity for EV batteries in the US is anticipated to rise from approximately 200 GWh last year to around 400 GWh next year, continuing to elevate concerns about overcapacity.
