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South Korea's Economy

Batteries and the Green Industries

How Korean firms like LG, Samsung SDI and SK became major battery makers for electric vehicles, and the competition with China.

Korean companies are among the world’s biggest makers of EV batteries.

The big three

  • LG Energy Solution.
  • Samsung SDI.
  • SK On.

Why Korea succeeded

  • Electronics experience with small batteries.
  • Chemical industry skills.
  • Early investment in lithium-ion technology.

Global plants

Korean battery makers built large plants in the US and Europe, partly to benefit from policies like the US Inflation Reduction Act (2022).

Hyundai and Kia

Hyundai and Kia became leading EV makers, with models winning international awards.

Competition from China

  • Chinese firms like CATL and BYD dominate global battery markets.
  • Chinese LFP batteries are cheaper, winning market share.
  • Korean firms focus on high-performance batteries and new technologies.

Risks

  • EV demand slowdowns.
  • Raw material dependence on China for processing.
The American battery plant

A Korean battery maker builds a giant factory in the US, supplying American carmakers and qualifying for US subsidies.

Thinking China is the only battery giant

Korean firms are major global battery makers too.

Key takeaways
  • LG, Samsung SDI and SK are major battery makers.
  • Electronics and chemical skills helped Korea.
  • Korean firms built plants in the US and Europe.
  • China's cheaper batteries are a strong challenge.
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