[Market Focus] Secondary Battery Stocks Rebound on Expectations of Windfall from Chinese Tariffs

On August 5, domestic secondary battery-related stocks are all showing an upward trend.

As of 10:40 a.m. on this day, Samsung SDI is trading at 214,500 won, up 20,800 won (10.74%) from the previous trading day.

Other major domestic battery companies, including SK Innovation (up 3.0%) and LG Energy Solution (up 2.93%), are also rising along with Samsung SDI.

Secondary battery material companies are also experiencing simultaneous gains. L&F is up 8.19%, and POSCO Future M is up 6.51%. Ecopro BM, which reported a surprise earnings result on this day, is up 12.78%, and Ecopro is also strong, rising 8.12%.

This appears to be due to expectations of a windfall from strengthened tariffs on Chinese-made batteries in the United States.

According to the industry, imported Chinese ESS batteries in the U.S. are currently subject to a total tariff rate of 40.9%, which includes the base tariff, reciprocal tariffs, and retaliatory tariffs related to fentanyl. It is analyzed that this rate will rise to 58.4% next year.

In a report on August 4, Anna Lee, a researcher at Yuanta Securities, analyzed that Korean secondary battery companies will have an advantage in any scenario regarding the upcoming reciprocal tariffs with China around August 12.

She explained, "Although reciprocal tariffs may slow electric vehicle demand in North America and increase cost burdens for secondary battery companies, domestic secondary battery companies that have or are planning to have factories in North America will gain a structural advantage due to the following factors: ▲North American policies such as government incentives, ▲no cases of new Chinese-funded factories being approved or operated in the U.S., and ▲North American OEMs giving up on using Chinese technology licenses."