South Korea's three largest battery companies are competing to build factories in the United States. Panasonic and Ningwang are said to be following suit.

As the global automotive industry accelerates its electrification transformation, major Korean electric vehicle battery manufacturers have chosen to establish ambitious overseas development plans. According to statistics, LG Energy Solutions, Samsung SDI and SK On, the three major battery companies, plan to build a total of 11 battery factories in the United States by 2026, most of which will be built in partnership with American automobile companies.

After the Biden administration came to power, the United States decided to accelerate the development of new energy vehicles and increase the market share of electric vehicles to 50% by 2030. To achieve this goal, the U.S. Department of Energy announced earlier this month that it would receive $3.16 billion from the bipartisan infrastructure bill for the development of the domestic electric vehicle battery manufacturing industry in the United States. Specifically, the $3.1 billion will be used to invest in the construction, renovation and expansion of facilities related to electric vehicle batteries.

On the one hand, North America has a strong market, and on the other hand, with the support of the Biden administration's policies, the United States has become the first choice for major battery manufacturers to build overseas factories.

LG Energy Solutions is the most aggressive in expansion

LG Energy Solution is the most aggressive expansion among Korean battery companies, and the company plans to build six battery production bases in the United States.

LG Energy Solutions and General Motors have established a joint battery company, Ultium Cells. Ultium Cells is currently building its first battery factory in Ohio, with a planned production capacity of more than 35 GWh. The second factory under construction is located in Tennessee, with a production capacity of more than 35 GWh. Ultium Cells plans to build a third factory in Michigan in 2025, with a planned production capacity of more than 50 GWh. The company expects to start discussions on building a fourth factory this year.

In addition, LG Energy Solution is independently building a battery factory in Arizona and plans to expand its factory in Michigan.

SK On and Samsung SDI

SK On plans to build a total of four battery factories in the United States. The company's joint venture with Ford Motor Company, Blue Oval SK, is building factories with a total production capacity of 129 GWh in Kentucky and Tennessee, which are expected to be operational in 2025.

Meanwhile, SK On is also building two factories in Georgia with a total investment of 3 trillion won. Hyundai Motor Group is said to be planning to invest 6.3 trillion won to build a battery factory in the state, which is expected to generate synergy effects.

Samsung SDI has formed a joint venture with automaker Stellantis, which plans to start producing electric vehicle batteries and modules in the United States in 2025. Once completed, the annual production capacity will reach 23 GWh, and Samsung SDI intends to expand it to 40GWh.

Panasonic and CATL are following suit

Not only are Korean battery companies rushing to build factories in the United States, other Asian battery manufacturers are also eyeing the North American market.

According to media reports, Panasonic is looking for locations to build factories in Oklahoma and Kansas, choosing these two states because they are close to Tesla's Gigafactory in Texas. Panasonic will produce the next-generation 4680 batteries for Tesla.

It is reported that CATL has also entered the final review stage for the site selection of its US power battery factory, and potential locations for the factory include Kentucky and South Carolina. CATL's US factory is expected to supply batteries to BMW and Ford.