While the electric vehicle battery market has recently slowed due to global high interest rates, reduced subsidies for electric vehicles, and a lack of charging infrastructure, it is predicted that it will improve in the second half of this year.

Energy market research firm Bloomberg New Energy Finance predicted that the global electric vehicle market will grow 21% this year compared to last year.

Of this year's expected electric vehicle sales (16.7 million units), 70% are expected to be pure electric vehicles.

Major market research organizations also predict that the electric vehicle battery market will grow at an average annual rate of more than 20% and reach 2.3 to 3.9 terawatt hours (TWh) by 2030.

The battery industry believes that the slowdown in growth is largely due to the external environment, such as interest rates, rather than problems within the battery industry itself, and that the industry can recover once external factors are resolved.

Previously, Kim Kyung-hoon, Chief Financial Officer (CFO) of SK On, said in the fourth quarter earnings conference call last year, "This year's overall business environment is uncertain considering macro factors, etc." but also added, "In the second half of the year, interest rates for automobile loans will decline due to the expected decline in base interest rates, and new electric vehicles will increase." “We are expecting a recovery in shipments through lineup expansion, etc.,” he said.

The three domestic battery companies already had a cumulative order backlog of over 1,000 trillion won last year.

LG Energy Solution secured new orders from Hyundai Motor Company's North American joint venture, Toyota, and Honda, increasing its order backlog to over 500 trillion won as of October last year.

SK Temperature also announced that its cumulative order backlog at the end of last year was more than 400 trillion won, an increase of 110 trillion won compared to the end of 2020.

(Photo = Yonhap News)