Polish batteries are facing the challenge of achieving a yearly export value of $10 billion, despite the slowdown in the battery industry in South Korea, which is close to reaching a record annual export of $10 billion. The slowdown is due to a decrease in demand for batteries related to the slowdown in the electric vehicle (EV) industry, as well as the relocation of battery production bases by Korean battery manufacturers to Europe and the United States, leading to a slowdown in exports.
According to the Ministry of Trade, Industry, and Energy as of February 4th, the export of Korean secondary batteries amounted to $9.83 billion last year, a decrease of 1.6% compared to the previous year. This is the first time since 2015, eight years ago, that annual export of secondary batteries has declined compared to the previous year.
The export of Korean secondary batteries exceeded $5 billion for the first time in 2017 and grew dynamically, reaching nearly $10 billion in 2022. However, the decrease in exports last year prevented the threshold of $10 billion from being surpassed, signaling a slowdown in the growth trend.
The slowdown in the export of secondary batteries has accelerated this year, with the export value in January reaching $590 million, a decrease of 26.2% compared to the same month last year.
Despite the overall revival of exports, where 13 out of the 15 largest export product categories indicated by the government, including semiconductors, are experiencing growth, the only categories with declining exports are secondary batteries and wireless communication devices (a decrease of 14.2%).
The share of secondary battery exports in South Korea’s overall exports has also decreased. It was 1.6% last year, higher than home appliances (1.3%), but it dropped to 1.1% in January, below home appliances (1.2%).
As the growth of exports slows down, the import of secondary batteries, mainly from China, has rapidly increased, leading to a reduction in the surplus of secondary battery trade. South Korea’s position as a net exporter of batteries is gradually weakening.
The surplus of secondary battery trade, which reached its peak at $5.83 billion in 2019, fell to $900 million last year.
The short-term slowdown in the export of secondary batteries is the result of a slowdown in demand for electric vehicles since the second half of last year.
In response to changes in the trade environment, such as the American Inflation Restriction Act (IRA), major battery manufacturers such as LG Energy Solution, SK ON, and Samsung SDI have accelerated the establishment of overseas production bases in North America and Europe. This has resulted in a structural factor affecting the slowdown in the export growth of “domestic secondary batteries.”
According to the Korean Trade and Investment Promotion Agency (KOTRA) in its latest report “Global Trends in the Secondary Battery Market,” the secondary battery market will continue to grow as the electric vehicle market develops under the carbon neutrality policies of major countries. The report emphasizes the need to enhance the competitiveness of products through the development of high-performance technologies as the market matures.
Frequently Asked Questions:
Q: What are the causes of the slowdown in the export of secondary batteries in South Korea?
A: The slowdown is due to a decrease in demand for batteries related to the slowdown in the electric vehicle (PEV) industry and the relocation of battery production bases by Korean battery manufacturers to Europe and the United States.
Q: What are the statistics for the export of Korean secondary batteries?
A: The export of Korean secondary batteries amounted to $9.83 billion last year, a decrease of 1.6% compared to the previous year. This is the first decline since 2015.
Q: What was the value of the export of Korean secondary batteries in 2022?
A: The export of Korean secondary batteries reached nearly $10 billion in 2022.
Q: How did the slowdown in the export of secondary batteries affect imports?
A: The import of secondary batteries, mainly from China, has rapidly increased as the export growth slows down, leading to a reduction in the surplus of secondary battery trade. South Korea is gradually losing its position as a net exporter of batteries.
Q: What are the prospects for the secondary battery market according to the KOTRA report?
A: According to the KOTRA report, the secondary battery market will continue to grow with the development of the electric vehicle market under the carbon neutrality policies of major countries. The report emphasizes the need to enhance the competitiveness of products through the development of high-performance technologies.
Key Terms and Jargon Definitions:
– Secondary batteries: rechargeable batteries.
– Ex: export.
– PEV: electric vehicles.
– Slowdown of growth: decrease in the rate of growth.
Suggested Related Links (to main domain, not subdomains):
1. Korean Trade and Investment Promotion Agency (KOTRA)
2. Ministry of Trade, Industry, and Energy
The source of the article is from the blog kewauneecomet.com