South Korean battery makers SK On, LG Energy Solution, and Samsung SDI are experiencing mounting pressure in the US market as major automakers cancel or delay electric vehicle projects, disrupting planned battery supply agreements, according to The Korea Times.
US EV Project Cancellations Impact Battery Supply Plans
SK On is reviewing a US$10 billion supply plan with Nissan following the carmaker’s decision to drop a US$500 million EV SUV project. Nissan had earlier ended a joint venture with Ford. LG Energy Solution ended a Canadian joint venture with Stellantis in February and faces a first-half shutdown at Ultium Cells with General Motors. Samsung SDI remains in discussions with both Stellantis and GM regarding delayed projects.
Market Contraction and Financial Toll
US battery electric vehicle sales fell an estimated 28% in the first two months of 2026 following the Trump administration’s end of consumer tax credits. Ford has taken charges exceeding US$19 billion to shrink EV plans, while Stellantis recorded charges of US$26 billion for similar reductions.
The impact has reached South Korean suppliers directly. LG Energy Solution recorded its first first-quarter operating loss at 207.8 billion won (US$141 million). Stellantis also sold its 49% stake in NextStar Energy, a Canadian battery venture with LG Energy Solution once valued at approximately 1.4 trillion won (US$964 million), for US$100.
Strategic Pivot: Europe and Energy Storage
The three Korean battery makers are now leaning on Europe as a primary growth market. LG Energy Solution and Samsung SDI have secured battery supply agreements with BMW and Mercedes-Benz. SK On has raised output capacity in Hungary.
In North America, South Korean battery makers are converting some EV battery production lines to energy storage system (ESS) batteries, which support power grid stability and AI data center power requirements. However, this strategy may provide only temporary relief, as ESS contracts depend on competitive bidding and often utilize lower-margin lithium iron phosphate (LFP) cells.
LG Energy Solution has signed a deal valued at approximately 10 trillion won (US$6.8 billion) to supply BMW with 46-series cylindrical batteries over approximately 10 years, representing a significant European foothold. This two-track approach allows the companies to pursue premium EV battery deals in Europe while using the more commoditized ESS business to absorb part of approximately US$45 billion in North American investments announced between 2021 and 2025.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Hyperliquid Trader Yixie10 Logs $1.446M Unrealized Gain on SNDK Long, $3.81M on AMD and MU
According to Foresight News, Hyperliquid trader yixie10 entered a long position of 1,760 SNDK shares at $665.45 per share (approximately $2.61 million) and has accumulated an unrealized gain of $1.446 million, becoming the highest-profit account on the platform for the SNDK equity token. The same tr
GateNews3m ago
MPS Raises 2026 Revenue Guidance to 85% YoY Growth, Lifts Capacity Target to $60B on May 6
According to Monolithic Power Systems CFO on an earnings call on May 6, the power chip maker raised its manufacturing capacity target from $4 billion to approximately $6 billion for 2026. The company also increased its full-year revenue guidance to approximately 85% year-over-year growth, driven
GateNews14m ago
Bitcoin spot ETF saw net inflows of $467 million, with positive inflows for 4 consecutive days
According to SoSoValue data, as of May 5, 2026, in Eastern Time, the total net inflow of Bitcoin spot ETFs reached $467 million, marking a positive capital inflow for the 4th consecutive day; the same day, the total net inflow of Ethereum spot ETFs reached $97.5728 million.
MarketWhisper16m ago
Robinhood SVP: Tokenization, 24-Hour Trading Boost U.S. Equity Demand
Robinhood's senior vice president Johan Kerbrart stated that overseas demand for U.S. equities is growing, driven by three key factors: tokenization, 24-hour trading, and regulatory shifts. According to Kerbrart, these developments are enabling broader investor access to U.S. markets beyond
CryptoFrontier1h ago
Lucid Group Suspends 2026 Production Forecast After Supplier Seat Issue Disrupts Gravity SUV
According to Reuters, Lucid Group suspended its 2026 production forecast on May 5 after a supplier issue disrupted deliveries of its Gravity SUV. The Newark, California-based electric vehicle maker reported first-quarter revenue of
GateNews1h ago
Rivian Expands R2 Variants as June Deliveries Approach
Rivian is developing multiple variants of its lower-cost R2 electric vehicle and expects to begin deliveries around June, according to Reuters. The US electric vehicle maker recently started volume production of the R2, which is central to its growth strategy. Rivian chief executive RJ Scaringe
CryptoFrontier1h ago
