Korean battery manufacturers announce additional joint ventures in the USA
10. August 2023Samsung SDI, for example, will establish a joint venture with General Motors, joining other South Korean companies that are expanding their market position through partnerships with global automakers. SDI, the battery division of the Samsung Group, recently signed a memorandum of understanding with the US carmaker in Michigan to build a battery factory. As recently as last year, GM was planning to build its fourth EV battery factory in Indiana together with LG Energy Solutions (LGES). The two companies already operate the Ultium Cells joint venture. For battery related products, KC certification, KCs certification or other Korean product certifications are often required to be approved for the Korean market.
However, LGES remained sceptical about executing the plan, citing the uncertain economic situation and the formation of a union at the Ultium site in Ohio as reasons. GM therefore looked for a new partner for the project and found one in Samsung SDI. During the January 2023 quarterly earnings announcement, Samsung SDI also stated its intention to enter into a second joint venture with another US carmaker. In addition to the new partnership with GM, Samsung SDI is already working with Stellantis.
LGES, on the other hand, started building a battery factory in Ohio together with Japan’s Honda Motor, as well as planning to set up a joint venture with Ford Motor in Turkey. Ford, on the other hand, initially planned to build the Turkish site with SK On, but failed to do so for unknown reasons. Instead, Ford announced that it would set up a production facility for lithium iron phosphate batteries under licence from China’s CATL. Although SK On and Ford continue to reaffirm their cooperation and are building a factory in Kentucky with the already existing joint venture BlueOval SK, doubts remain about the long-term cooperation. SK On, meanwhile, is planning to build a battery factory in Georgia together with Hyundai Motor Group.
“Korean battery makers and US automakers had maintained exclusive partnerships in the past, but the diverse demand for batteries for different types of vehicles and regions made it difficult for a single battery maker to fully meet the requirements of a specific automaker,” said Chang Jung-hoon, an analyst at Samsung Securities. Certifications for the Korean market are a complex hurdle and difficult to navigate due to different authorities and certification systems. With over 15 years of experience in the certification business, MPR International GmbH is your best point of contact for competent service when it comes to exporting to Korea. For example, KC Safety is relevant for electronics and household products, which are mostly intended for consumers, as well as products for children and babies.
Feel free to contact us any time if you need assistance or have any questions regarding Korean certifications like KC, KC EMC, KCs, KCs for explosion safety products or KGS factory registration.
Tel. Europe: +49-69-271 37 69 261
Tel. US: +1 773 654-2673
Email: info@korea-certification.com
For more information you can download our free brochure “Korea Certification Made Easy – The Booklet“.
