Pickup Trucks Using 50% More Battery Fuel US Supply Shortages

US Struggles with Self-Supply, Rapid Increase in Battery Imports from Korea, China, and Japan

Ford's electric pickup truck F-150 Lightning prototype being manufactured at Ford's Dearborn plant in Michigan, USA

[Asia Economy Reporter Choi Dae-yeol] It has been revealed that the United States has significantly increased its battery import volume this year. This is interpreted as due to a surge in electric vehicle demand coupled with insufficient domestic production capacity.

According to statistics from the Korea International Trade Association on the 18th, lithium-ion batteries exported from South Korea to the U.S. from the beginning of this year until last month totaled $1.485 billion. This amount is more than four times higher than the same period last year and has already far exceeded the total annual export volume to the U.S. last year ($817 million).

Lithium-ion batteries are rechargeable secondary batteries used extensively across various fields including automobiles, small home appliances, medical devices, and aerospace and defense industries. The largest application is in electric vehicles. The U.S. is considered one of the world's three largest automobile markets along with Europe and China, but it is regarded as relatively lagging behind in electric vehicles. Since President Joe Biden took office, the Green New Deal policy has actively promoted the expansion of electric vehicle adoption, leading to a sharp increase in demand recently.

Only four or five years ago, South Korean companies mainly exported batteries to China and Germany, but this year the U.S. has overwhelmingly become the number one destination. Battery export amounts to other major countries except the U.S. have mostly decreased, which is interpreted as an effect of increased exports to the U.S.

The U.S. has also significantly increased imports from other major battery manufacturing countries such as China and Japan, not just South Korea. China is the largest source of battery imports for the U.S., with imports of Chinese batteries reaching $2.132 billion through July this year, more than 73% higher than the same period last year. Imports of Japanese batteries also increased by over 64%, exceeding $500 million. Among South Korea, China, and Japan, which account for most of the world's secondary battery production, the U.S. is the largest export market. Unlike Europe or China, the U.S. lacks sufficient local battery factories.

Electric pickup truck R1T from American electric vehicle startup Rivian. It uses Samsung SDI batteries.

South Korea, China, and Japan Account for 95% of Global Secondary Battery Production
U.S. is the Largest Export Market... Supply Shortage Expected to Continue for the Time Being

The increase in battery demand in the U.S. is due to expectations that electric vehicle adoption will accelerate faster than initially anticipated. Although demand is rapidly increasing, it is expected to soon outpace production capacity from local battery factories. Currently, aside from Panasonic, which mainly supplies Tesla, and LG Energy Solution, there are no companies with large-scale battery manufacturing facilities in the U.S. SK Innovation's Georgia plant was completed earlier this year and is currently in pilot production, with industry insiders expecting mass production to begin within the year.

With the Biden administration driving electric vehicle initiatives, major automakers such as General Motors (GM) and Ford are releasing new electric vehicle models, rapidly increasing electric vehicle demand. In particular, unlike existing sedan or SUV-type electric vehicles, pickup truck-based electric vehicles, which have strong local demand, are expected to be very popular, leading the industry to anticipate significantly higher battery demand.

Electric vehicle battery factory that SK Innovation is building in Georgia, USA

Ford's F-150 Lightning, despite being scheduled for release next year, has already surpassed 130,000 pre-orders. Ford recently doubled its annual production target to 80,000 units due to much higher than expected demand. Tesla's Cybertruck, as well as recently officially launched Rivian R1T and GMC Hummer EV, are also attracting significant interest among local consumers.

Pickup trucks have larger bodies and are designed so that the installed batteries can also be used as energy storage systems (ESS), requiring more batteries than other vehicles. The battery capacity used in Ford pickup trucks is 100 kWh, about 50% more than the approximately 70 kWh used in typical mid-sized sedan electric vehicles. Considering that ultra-compact electric vehicles released domestically have around 10 kWh capacity, this is a substantial amount. The GM Bolt, which has sold well in the U.S., has had its batteries entirely replaced by the company, so the battery supply shortage is expected to continue for some time.

This content was produced with the assistance of AI translation services.