Reportedly, the US Reduction Act (IRA) is speculated to augment and encourage Korean companies’ share of the North American electric vehicle (EV) battery market to around 70 percent.
While SNE Research made the prediction at the Pohang International Conference 2022. It is held at the POSCO International Pavilion in Pohang, North Gyeongsang Province. Notably, Pohang is showcasing itself as a global battery industry hub.
Notably, before the IRA took effect, SNE Research forecasted the three Korean battery manufacturers. It includes LG Energy Solution, SK On, and Samsung SDI respectively. Combinely, it will secure to achieve a battery production capacity of 280GWh in North America in 2025. While this figure depicts 53.2 percent of North America’s total battery production capacity of 526GWh.
CATL, the world’s No. 1 battery maker scratched off its investment plan
However, with the announcement of the IRA in August, the outlook was revised. This is because China’s CATL, the world’s No. 1 battery manufacturer, scratched off its investment plan in North America as the IRA aims to remove China from a U.S.-led global battery supply chain.
Also, at the same time, with the announcement that has been done in August, the outlook was revised. The reason for the same is China’s CATL, which is the world’s top battery maker, as it scratched off its investment plan in North America. Since the IRA’s motive to remove China from a US-led global battery supply chain.
SNE Research expected that the three Korean battery manufacturers will accomplish the void created by CATL’s investment cancellation. Also, their American battery production capacity is predicted to hike to 355 GWh in 2025. It indicates the amount of 67.4 percent of the total production capacity in North America.
SNE Research also expected their order backlog would increase from 700 trillion won at the end of September to 1,000 trillion won by the end of 2o23. By the year, its order backlog will climb up to 40 trillion won in 2023. While 50 trillion won in the year 2024, also more than 100 trillion won in 2026 and 2027 respectively.
For more, if you want to know about electric vehicles around the globe can switch to the site directly. @ EAutoArena On Telegram, Twitter, Google News & Youtube.