As the United States is the country that imports the most secondary battery materials, there are voices advocating for the government to respond to the Trump administration's tariff policy on battery materials.
According to the United Nations trade statistics from the Korea International Trade Association (KITA) on the 22nd, the import value of the three main secondary battery materials (cathodes, anodes, and separators) in the U.S. increased by 93% from $5.021 billion in 2020 to $9.698 billion in 2023. Cathodes, anodes, and separators are core materials for secondary batteries.
Last year, Korea's export value of the three main secondary battery materials to the U.S. was $3.268 billion, accounting for the top share (33.7%) of the U.S. battery material imports. It is interpreted as a result of the three South Korean battery companies, LG Energy Solution, SK On, and Samsung SDI, increasing imports of battery materials from Korea as they build secondary battery plants in the U.S. Followed by Japan (26.4%) and China (8.4%) holding the second and third shares.
Recently, U.S. media reported that the transition team of President-elect Trump is considering cutting the electric vehicle subsidies under the Biden administration's Inflation Reduction Act (IRA) and imposing tariffs on battery materials. Reuters reported that Trump’s second term would induce domestic production in the U.S. by imposing tariffs on all battery materials.
If tariffs are imposed on actual battery materials or if foreign companies are required to construct battery production facilities in the U.S. after Trump’s second term begins next month, it is anticipated that South Korean corporations could be affected. There are opinions within the domestic industry that the government should enhance its negotiating power with the U.S.