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[Alpha Biz=(Chicago) Reporter Kim Jisun] Exports of cathode materials, a key material for secondary batteries, to the US from January to July of this year increased nearly three times compared to the same period last year. It is interpreted that the export volume of domestic cathode materials increased as Korean battery makers increased local production due to the US Inflation Reduction Act (IRA).
According to the Korea International Trade Association (KITA) on the 7th, exports of cathode materials to the US from January to July of this year were $1.836 billion, up 2.8 times from the same period last year ($661 million).
Exports of cathode materials to the US were only $9 million in January 2021, but a year later, in January of last year, they recorded $57 million, a more than sixfold increase.
In May of last year, it was counted at 106 million dollars, surpassing 100 million dollars for the first time, and throughout the second half of last year, monthly exports fluctuated between the mid and late 100 million dollars. Since January of this year, it has surpassed the $200 million mark, peaking at $326 million in March. Since then, exports have been sluggish for a while with 174 million dollars in June, but in July, exports showed a recovery again with 276 million dollars.
The US IRA seems to have had an effect on the sharp increase in exports of domestic cathode materials to the US. With the implementation of the IRA in August of last year, domestic battery companies are investing one after another, such as building joint factories with American electric vehicle manufacturers in large numbers in the local area.
A typical example is when LG Energy Solutions established a joint venture with General Motors (GM) of the United States and operated battery factories with an annual capacity of 40 to 50 GWh (Gigawatt hour) in Ohio, Tennessee, and Michigan. It is interpreted that the export of cathode materials increased as the factories started operating one by one.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
