Recently, domestic exports of secondary batteries have been showing a recovery trend, overcoming the stagnation caused by the "chasm" phenomenon (temporary demand stagnation) in the electric vehicle market.
According to the Ministry of Trade, Industry and Energy, South Korea's secondary battery exports in the first half of this year recorded $3.97 billion, a 21.2% decrease compared to the same period last year.
Due to the stagnation in electric vehicle demand, exports of secondary batteries declined alongside steel (-10.2%). However, they have been on the rise for two consecutive months recently.
In June, secondary battery exports recorded $740 million, the highest figure this year.
After hitting a low of $618 million in April, they steadily increased to $644 million in May and $740 million in June.
The proportion of secondary batteries in total domestic exports also rose from 1.1% in May to 1.3% in June.
The government expects the recovery trend in secondary battery exports to continue in the second half of the year, in line with the mass production and export launch of new products by major domestic battery companies and the inventory clearance by global automakers.
LG Energy Solution plans to start mass production of next-generation cylindrical 4680 batteries at the Ochang Energy Plant from August, which are expected to be supplied to Tesla and others.
Additionally, although the prices of key minerals such as lithium, which are linked to secondary battery prices, remain lower than last year's peak, a positive lagging effect can be expected if prices rise in the future.
The rise in lithium carbonate prices to around 110 yuan per kilogram in April and May may be reflected in product prices.
Choi Woo-seok, head of the Trade and Investment Office at the Ministry of Industry, said, "Although battery exports are lacking, the rise in lithium prices in April and May may be reflected in product prices from the second half of the year. The full-scale production of cylindrical batteries by LG Energy Solution from August is expected to improve battery export performance in the second half."
However, it is projected that the proportion of secondary battery exports in South Korea's total exports will not increase significantly as major domestic secondary battery companies are moving their production bases overseas.
The Korea International Trade Association pointed out in its report that the shift to overseas production is a major factor in the decrease in South Korean secondary battery exports.
Last year, South Korea's secondary battery exports recorded $9.83 billion, a 1.5% decrease from the previous year, marking the first negative growth in eight years since 2015.
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Exports of Secondary Batteries Recovering, Overcoming the Stagnation in the Electric Vehicle Market
Recently, domestic exports of secondary batteries have been showing a recovery trend, overcoming the stagnation caused by the
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