Chinese battery export dip sparks hope for Korean firms in U.S. market

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Chinese battery export dip sparks hope for Korean firms in U.S. market

Published: 20 Apr. 2025, 07:00

Audio report: written by reporters, read by AI

LG Energy Solution employees inspect battery production at the firm's Ultium Cells plant. [LG ENERGY SOLUTION]

Chinese EV battery shipments to the United States dropped sharply in February amid escalating trade tensions, bolstering hopes for Korea’s battery makers expanding their footprint in North America.

According to United States International Trade Commission data released on Tuesday, imports of Chinese lithium-ion batteries for EVs in January and February totaled $289 million, down 24.4 percent from $383 million a year earlier. While January saw a 14.8 percent year-on-year rise, February imports plummeted 58.8 percent.

China remains the top exporter of EV batteries to the United States, but its share of total U.S. battery imports fell dramatically — from 68.8 percent in the January-February period in 2024 to 42.3 percent this year.

Despite the decline in Chinese battery imports, overall U.S. battery imports rose 23.1 percent during the same period, suggesting that demand is still climbing. The shortfall from China is widely interpreted as a result of tariff pressure rather than softening demand.

The United States imposed a 10 percent general tariff on Chinese imports on Feb. 4, citing national security concerns over substances like fentanyl. That pushed the effective tariff on Chinese EV batteries from 28.4 percent to 38.4 percent.

The Trump administration has since raised tariffs further. In March, it added another 10 percent tariff, and a 25 percent item-specific tariff on auto parts is scheduled to take effect on May 3. While EV batteries are classified as auto parts, they are excluded from the 125 percent retaliatory tariff list.

Korean battery manufacturers — LG Energy Solution, Samsung SDI and SK On — stand to benefit from the trade shift. All three have established production bases in the United States.

LG Energy Solution operates three sites, including a wholly owned plant in Holland, Michigan. SK On runs its SK Battery America facility in Georgia. Samsung SDI recently launched operations at a joint venture plant in Kokomo, Indiana, with automaker Stellantis. Once their ongoing construction projects are completed, the combined U.S. production capacity of the three companies could reach 600 gigawatt-hours (GWh).

Ships are under construction at the Jinling Shipyard in Nanjing in eastern China's Jiangsu province on April 11. [AP/YONHAP]

Korean shipbuilders are also gaining ground as U.S. scrutiny of China’s shipbuilding sector intensifies. The U.S. Department of Defense recently blacklisted China State Shipbuilding Corporation, and rising tensions have led global shipowners to reconsider contracts with Chinese yards.

In March, Korea secured 820,000 compensated gross tons (CGT) in new ship orders — 55 percent of the global total of 1.5 million CGT across 58 vessels — outpacing China, which recorded 520,000 CGT, or 35 percent.

Chinese yards are seeing a marked decline in vessel orders amid growing U.S. pressure. Maritime news outlet TradeWinds, citing Britain-based shipping intelligence firm Howe Robinson, reported Tuesday that bulk carrier orders placed with Chinese shipbuilders totaled just 13 in the first quarter, the lowest since 1993 and down 90.9 percent from 143 a year ago.

The order book could grow further for Korea. U.S. liquefied natural gas (LNG) producer Venture Global is reportedly in talks to place an order for up to 12 LNG carriers with Korea’s top three shipbuilders, in a deal estimated at 4.3 trillion won ($3 billion).

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY NA SANG-HYEON, PARK YOUNG-WOO [[email protected]]