The export of products with Korean batteries has experienced a 1.6% decline in 2023 compared to the previous year, as reported by the Ministry of Trade. This is the first drop in seven years and is attributed to the slower pace of electric vehicle sales.
The value of battery shipments amounted to $9.83 billion, marking the first decrease since 2015. Export has been driving growth, surpassing $5 billion in 2017. However, in the past year, the trade surplus in the lead-acid battery segment significantly decreased from $5.83 billion in 2019 to $900 million. This is due to the increased import of batteries from China.
The decrease in battery exports can also be attributed to Korean battery manufacturers focusing more on foreign production rather than developing domestic facilities. The three major battery companies in the country – LG Energy Solution, SK On, and Samsung SDI Co. – have expanded their production efforts in their overseas plants in the United States and Europe to take advantage of tax incentives offered there.
Despite the decline in battery exports from South Korea, the electric vehicle industry still holds promising prospects. Investments in charging infrastructure development, growing environmental awareness, and potential regulatory changes favor further growth in electric vehicle sales.
FAQ:
1. What was the growth in Korean battery exports in 2022?
Battery exports declined by 1.6% in 2023 compared to the previous year.
2. What was the value of battery shipments in 2023?
The value of battery shipments amounted to $9.83 billion, marking the first decrease since 2015.
3. What caused the decrease in battery exports?
The decrease in battery exports resulted from the slower pace of electric vehicle sales and increased foreign production by Korean battery manufacturers.
4. Which companies increased production in their foreign plants?
The three major battery companies in South Korea – LG Energy Solution, SK On, and Samsung SDI Co. – increased production in their overseas plants in the United States and Europe.
5. Does the electric vehicle industry still have growth prospects?
Yes, investments in charging infrastructure, growing environmental awareness, and potential regulatory changes favor further growth in electric vehicle sales.
Terminology and Technical Language:
– Export: Trading products or services in foreign markets.
– Battery: A device used for storing and supplying electrical energy.
– Lead-acid battery: A type of battery that utilizes sulfuric acid and lead for energy storage.
– Import: Bringing products or services from foreign countries into the domestic market.
– Charging infrastructure: Systems and devices that enable the charging of electric vehicles.
– Regulations: Rules and regulations established by governments to control and regulate economic activities.
Recommended Related Links:
– https://www.lgessbatterysolutions.com/
– https://www.samsungsdi.com/
– https://www.skinnovation.com/
The source of the article is from the blog foodnext.nl