South Korea has experienced a 1.6% decrease in the export of battery products in 2023 compared to the previous year, according to the Ministry of Trade. This decline can be attributed to a slowdown in electric vehicle sales, which has impacted the demand for rechargeable batteries.
The value of shipments of rechargeable batteries reached $9.83 billion, marking the first decline in export value since 2015. The export of rechargeable batteries had been steadily growing over the years, with a significant increase from $5 billion in 2017 to $9.98 billion in 2022.
The trade surplus in the rechargeable battery segment also witnessed a substantial decrease. In 2023, the trade surplus dropped to $900 million, a significant decline from $5.83 billion in 2019. This decrease in trade surplus can be attributed to the increased battery imports from China.
In addition to the slowdown in electric vehicle sales, the decline in battery exports can be linked to Korean battery manufacturers’ strategy of expanding their production overseas rather than domestically. Companies such as LG Energy Solution, SK On, and Samsung SDI Co. have been focusing on expanding their production facilities in the United States and Europe. These companies are taking advantage of local tax incentives, which are motivating them to increase their production capacities outside of South Korea.
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The source of the article is from the blog aovotice.cz