South Korea's import value of China-made EV batteries increases 114.6% in the first eight months of 2023

(JW Insights) Oct 10 -- South Korea's import value of Chinese-made batteries for electric cars in the first eight months of 2023 was $4.47 billion, a year-on-year increase of 114.6%. By August alone, the import value has already surpassed the entire previous year's import value of $3.49 billion, showed data from the Korea Trade Association released on October 8.

Business Korea reported that industry insiders attribute this sharp rise in battery imports to the broader adoption of Chinese-made Lithium Iron Phosphate (LFP) batteries by the South Korean automobile sector.

South Korea has seen a surge in the import of cost-effective Chinese-made LFP batteries. This trend is primarily due to the aggressive pricing strategy of Tesla, the world's leading electric car manufacturer that uses LFPs, steering the electric car market towards a price-centric model. Consequently, South Korean-produced budget electric vehicles are increasingly being fitted with the more affordable LFP batteries.

In reality, Hyundai sells its sport utility vehicle (SUV), the Kona Electric, with Chinese LFP batteries. Similarly, Kia uses these batteries in its Niro and Ray EV models. KG Mobility also launched its new electric car, Torres EVX, incorporating LFP batteries from the Chinese battery firm BYD, according to the Business Korea report.

(Li PP)