Trump wanted Korean battery builders to stay. How dependent is Europe on Korean EV battery makers?

More than 300 South Koreans detained successful nan United States person returned location aft 5 days of detention pursuing a ambush by Immigration and Customs Enforcement (ICE) connected a Hyundai installation successful Georgia.

Hyundai produces electrical vehicles (EVs) and will soon make EV batteries pinch its partner LG Energy Solution astatine this manufacturing works successful Georgia.

President Donald Trump reportedly ordered a region to cheque whether nan labor were consenting to stay successful nan US to proceed moving and training Americans, delaying nan repatriation by a day.

Hyundai and LG’s associated ‘Metaplant’ task was slated to unfastened its artillery mill successful 2026. However, nan activity connected nan artillery works was halted aft nan raid.

The International Energy Agency (IEA) estimates that South Korean companies already relationship for 40 per cent of US artillery compartment accumulation capacity, a fig expected to emergence to complete 50 per cent by 2030.

The ambush raises questions astir nan building of global EV proviso chains. Europe’s EV marketplace is mostly insulated from disruptions successful nan US, arsenic automakers typically combine vehicles and root cardinal components close to their extremity markets.

Reports show that astir EVs sold successful Europe are built locally, some nan vehicles themselves and progressively their batteries. According to a 2024 marketplace study study published by a associated EU investigation group IPCEI-Batteries, “80 per cent of European request was already covered by cells produced successful Europe by 2023”.

However, nan continent heavy relies connected South Korean-run factories for EV batteries. About 75 per cent of existing artillery compartment manufacturing capacity successful Europe is owned by Korean companies, 50 per cent of which is owned by LG, according to nan International Energy Agency. 

Korean chaebol conglomerates’ power subsidiaries, specified arsenic LG Energy Solution, Samsung SDI and SK On, began building gigafactories successful Central and Eastern Europe to proviso Europe’s increasing EV marketplace arsenic early arsenic 2016.

Mercedes-Benz is 1 of nan biggest buyers of Korean EV batteries. In September, German automaker signed semipermanent artillery proviso contracts pinch LG Energy Solution pinch nan ambition to nutrient 32 GWh of batteries by 2035 and an further 75 GWh by 2037, according to media reports.

Where successful Europe are EV artillery plants located?

Most gigaplants successful Europe are located successful Poland, Hungary, and Germany.

In 2022, Poland became nan world's second-largest shaper of lithium-ion batteries, producing 60 per cent of each lithium-ion batteries made successful Europe, according to a 2024 report by pan-European deliberation tank, Strategic Perspectives, and world investigation group, Zero Carbon Analytics.

“[Poland became] nan world’s second-largest shaper of lithium-ion batteries, aft China…These developments spot Poland astatine nan forefront of nan world cleanable exertion proviso chain, boosting its strategical position successful nan European net-zero transition,” said nan 2024 report.

This activity is driven by Korean investment. The Polish metropolis of Wroclaw houses Europe’s largest artillery mill connected an area of 100 hectares, an LG Energy Solution works which produces astir 86GWh per twelvemonth and employs 9,500 workers, according to LG and nan Polish section government.

The gigaplant supplies cells to Volkswagen Group, Audi, Porsche, Jaguar Land Rover and Mercedes-Benz.

Hungary hosts Samsung SDI’s works successful nan metropolis of Göd, which supplies BMW and Volkswagen, and SK On’s Iváncsa and Komárom sites, which supply cells for Hyundai-Kia’s European operations and Ford.

Chinese artillery shaper CATL began compartment accumulation successful Thuringia, Germany, successful 2022 for BMW and Volkswagen. It presently produces astir 8 GWh per year, pinch plans to summation to 14 GWh per year. 

However, nan European Commission has been actively pushing for a self-sufficient artillery proviso chain. In 2017, it launched nan European Battery Alliance (EBA) to create its ain manufacturing. 

The Commission is now drafting legislation to present minimum EU contented requirements for cells and components successful electrical vehicles sold successful Europe.