70% of US Subsidized Electric Vehicles Use Korean Batteries

K-Battery is making strides in the U.S. market. The U.S. government recently expanded the number of subsidized electric vehicle models from 10 to 43 at the end of last month, and 72% of these vehicles are identified as using Korean batteries.

At the end of last month, the U.S. Department of Energy increased the number of subsidized electric vehicle models eligible under the Inflation Reduction Act (IRA) from 10 to 43. Of these, 31 models use batteries from South Korea’s top three battery manufacturers: LG Energy Solution, Samsung SDI, and SK on. LG Energy Solution leads with 17 models, followed by Samsung SDI with 12 and SK on with 10.

Among the 43 subsidized electric vehicle models, all brands except Nissan use at least one model equipped with Korean batteries. The only exceptions are Nissan’s Leaf S and Leaf SV Plus, which use products from Chinese battery manufacturer Envision AESC.

The battery industry expects continued favorable conditions, as a large number of new electric vehicle models are set to be released in the second half of this year. Additionally, the decision to grant a two-year grace period for the use of Chinese graphite is expected to work in favor of the three major Korean battery manufacturers.

LG Energy Solution is anticipated to supply batteries to General Motors’ (GM) new models, SK on to the upcoming Hyundai Ioniq 9, and Samsung SDI to its major clients BMW and Volkswagen for their new models.