The US automotive lithium battery market was worth US$1 billion in 2017 and that has grown exponentially in 2020 at US$1.39 billion. Experts predict that the market is likely to reach 1.99 USD by 2023 and 2.8 billion USD in 2025. The business of electric vehicles has been one of the most profitable, and its growing popularity owing to climate concerns only solidifies this.
As of now, Tesla is the world’s largest electric vehicle manufacturer. GM and Ford are also joining the electric car bandwagon. Toyota, Hyundai, and Volkswagen also plan to provide more electric vehicle models in the United States.
Keeping all of these in mind, Panasonic Battery has been deemed the number one car battery market in the US in 2020. The company provides batteries for Tesla Model 3, S, and X; moreover, Panasonic also owns a 46% share of the US EV battery market. LG Energy Solutions came second with an 11% share. Both LG and SK are expanding their business in the US in the EV battery field.
LG is looking forward to increasing its local manufacturing capacity at a rate of 30 to 145 GWh per year which means LG is looking for manufacturing almost 2 million electric vehicles. On the other hand, SK wants to increase its local manufacturing in the US and likewise has planned to invest at least 5 trillion won. The company has currently invested about 3 trillion won in the United States.
A few reports are claiming that South Korean battery companies are likely to account for more than 50% of the US electric vehicle battery supply. A source claimed, “By 2025, LG Energy Solutions and SK Innovation are expected to account for 41% and 12% of U.S. electric vehicle battery manufacturing capacity, respectively. Panasonic’s ratio is estimated to drop to 19%.” Panasonic will continue to reign for the upcoming future.