South Korea Emerges as Gateway for Chinese Firms Eyeing US Electric Vehicle Market
Portfolio Pulse from Anusuya Lahiri
Chinese firms are investing in South Korea's battery industry to gain exposure to the U.S. market. Over the past four months, Chinese and Korean companies have announced $4 billion of investments in five new battery factories in Korea. Chinese companies dominate the global battery supply chain, supplying to Korean EV cell manufacturers who, in turn, supply carmakers like General Motors Co, Tesla Inc, and Volkswagen AG. The Biden administration aims to reduce U.S. dependence on Chinese companies in the supply chain, but the deeply rooted presence of Chinese firms makes this problematic.
July 31, 2023 | 12:49 pm
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NEUTRAL IMPACT
General Motors may be indirectly affected by Chinese firms' investment in South Korea's battery industry, as Korean EV cell manufacturers supply to GM.
While GM is not directly involved in the investments, it is a customer of Korean EV cell manufacturers who are receiving supplies from Chinese firms. This could potentially affect the supply chain and costs for GM.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Tesla may be indirectly affected by Chinese firms' investment in South Korea's battery industry, as Korean EV cell manufacturers supply to Tesla.
While Tesla is not directly involved in the investments, it is a customer of Korean EV cell manufacturers who are receiving supplies from Chinese firms. This could potentially affect the supply chain and costs for Tesla.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Volkswagen may be indirectly affected by Chinese firms' investment in South Korea's battery industry, as Korean EV cell manufacturers supply to Volkswagen.
While Volkswagen is not directly involved in the investments, it is a customer of Korean EV cell manufacturers who are receiving supplies from Chinese firms. This could potentially affect the supply chain and costs for Volkswagen.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50