Korean Battery Firms Prepare for Global Challenges

Trade, Industry and Energy Minister Ahn Duk-geun, alongside executives from various Korean battery companies, cut the ribbon to officially open the InterBattery 2025 trade show at COEX in Seoul on Wednesday. This significant event, running for three days, brought together 688 battery firms from around the world to display their latest technologies.

On the first day, many visitors, particularly those speaking Chinese, explored the exhibition hall. The presence of numerous Chinese companies highlighted their intention to establish a stronger foothold in the increasingly competitive Korean market, especially in light of escalating global trade tensions.

This year's InterBattery featured 79 Chinese firms, including notable newcomers like BYD and EVE, both of which ranked highly in the global electric vehicle (EV) battery market last year. Although BYD displayed batteries primarily for consumer electronics and motorcycles without presenting its EV batteries, the growing involvement of Chinese firms posed a challenge for Korean exhibitors already facing U.S. tariffs and a slowdown in global EV demand.

In response to these challenges, Korean exhibitors showcased their advanced technologies, asserting that they could overcome competition from cheaper Chinese products in the global market. LG Energy Solution CEO Kim Dong-myung stated, "With our leading products, such as the 46-series cells and lithium iron phosphate (LFP) batteries, we will gain a competitive edge over Chinese companies." He expressed confidence in overcoming concerns about trade policies from the U.S., emphasizing their investments in American factories.

During his opening remarks, Kim labeled the current global political and economic uncertainties as opportunities for growth rather than risks.

Samsung SDI CEO Choi Joo-sun highlighted the company's plans for mass production of 46-phi cylindrical batteries, in addition to its collaborative efforts with Hyundai Motor Group in the robotics sector. He acknowledged the battery industry’s vulnerability to environmental policies and tariffs but remained optimistic about the impact of U.S. trade policies on their operations in Hungary, which have already adjusted due to the EV slowdown.

POSCO Future M presented its development of cathode materials for lithium manganese-rich batteries, claiming that these innovations could outperform LFP batteries primarily supplied by Chinese firms in terms of price and energy density. In response to concerns about competition from low-priced Chinese anode materials, CEO Eom Gi-chen noted that the South Korean government is considering support to stabilize the supply of battery materials.

SK On reported on its ongoing initiatives to mass-produce prismatic batteries and collaborate on immersion cooling technology for EVs with its subsidiary SK Enmove. During InterBattery, Park Ki-soo, the head of SK On's R&D division, shared the company's commitment to investing in research and development.

Despite these efforts, the major Korean battery firms are cautious about a swift recovery in global EV demand and expect a prolonged period of uncertainty, forecasting that the market will continue to face challenges into at least the first half of next year.

At the exhibition, Industry Minister Ahn Duk-geun, who recently returned from the U.S., promised that the government would implement measures to enhance battery demand and assist domestic firms in navigating the impacts of U.S. trade policies. He affirmed his commitment to communicate regularly with his American counterpart to ensure that Korean companies can continue their investment projects in the U.S. without interruptions.

Korea, Batteries, Trade