Korean Government Urged to Take Supportive Measures to Maintain Competitiveness in EU Battery Market
Key Highlights :
As the EU battery market continues to grow, the Korea International Trade Association (KITA) is urging the Korean government to take more support measures to maintain competitiveness in the face of rising competition from Chinese companies. China's share of the EU battery market has risen from 14.9 percent in 2020 to 34.0 percent last year, while Korea's share has fallen from 68.2 percent in 2020 to 63.5 percent.
The EU is increasingly becoming a battleground for global battery companies, with many announcing new facility investment and expansion plans in the region. This is due to the EU's ambitious goal of accounting for about a quarter of global lithium-ion battery demand by 2030. Chinese companies, which have had difficulty entering the U.S. market due to the Inflation Reduction Act (IRA), are taking advantage of the EU's open door policy and rapidly expanding their presence in the region.
KITA warns that without a prompt response from the Korean government and business, there is a risk of Korean players being overtaken by Chinese companies, which are backed by the Chinese government's financial support and price competitiveness. To compete on an equal footing with Chinese companies, the KITA suggests that the Korean government provide intensive financial support and policy efforts for the battery industry.
The report also emphasizes the importance of funding and technology that can quickly expand production facilities to meet the different requirements of each automaker. This is key to maintaining competitiveness in the EU battery market.
Korea's battery industry is a national high-tech strategic industry and a major driver of exports, production and employment. To ensure that the industry remains competitive, the Korean government must take swift and effective action to support local companies in the EU battery market.
