Under pressure from clients eager to diversify away from China, South Korean makers of automotive batteries have pledged to develop a more affordable type of battery chemistry favoured by their Chinese rivals. But LG Energy Solution (LGES), SK On and Samsung SDI say it will be hard to go full steam ahead with lithium iron phosphate (LFP) batteries as they can't yet compete on price, executives and company officials familiar with their business strategies said. Feeding their worries is slowing growth in electric vehicle sales and the potential for changes in U.S. subsidies should President Joe Biden lose the 2024 election, they said.
Goldman Sachs is predicting good news for an electric vehicle market hit by lagging demand, with falling prices the key factor.
Stellantis (STLA) and Samsung SDI plan to invest more than $3.2 billion in an Indiana EV battery plant.