According to foreign media reports, data from South Korean battery market tracker SNEResearch showed that South Korea's top three battery manufacturers, LG EnergySolution, SKOn and Samsung SDI, are expected to achieve a steady rise in revenue and profitability in the next few years. As they race to meet rising demand for electric car batteries in the United States. SNEResearch predicts that the combined revenues of the three companies will reach $121 billion by 2025, up nearly fivefold from $27 billion in 2021. That represents an annual growth rate of 48% over the five years from 2021.

LG New Energy and Samsung SDI will have a profit margin of around 10 percent by 2025. SKon, currently the only battery company in South Korea that is losing money, expects to break even by 2023 and achieve a 5 percent profit margin by 2025. The most profitable type of battery for South Korean makers is the 80 per cent nickel cylinder, which is expected to have a profit margin of 10 per cent. Meanwhile, margins for square and soft-pack lithium batteries will remain below 4%. The rosy outlook for Korean battery makers stems from their ability to enter the electric vehicle market in the US and Europe, giving them an upper hand over Chinese rivals such as CATL. In addition, the U.S. and Europe tend to build battery production plants in their own countries, which gives Korean battery companies an advantage. In the United States and Europe, Korean battery companies have been seeking partnerships with local car companies. The U.S. and Europe will account for 55% of the battery market by 2030, up from 39% in 2022.

The data suggest that the explosive rise in demand for electric vehicles in the US, helped in part by the signing of the InflationReductionAct, will trigger battery shortages that will last until 2030. If battery production does not expand after the new law is enacted, demand for batteries in the U.S. will outstrip supply by two to one by 2030. South Korean battery companies are gearing up to expand production in North America and Europe, aiming for four-fifths of their output to come from North America and Europe within 10 years.