The European Union is moving toward tighter scrutiny of China’s strategic industries, a development that could support South Korea’s major battery makers as regional supply chain policies gain momentum. On Sept. 2, the European Parliament held an industry public hearing on the proposed Industry Acceleration Act, or IAA, with some lawmakers calling for the bill to be strengthened beyond the European Commission’s original draft in response to China’s export push.
At the center of the proposal is the “Made in EU” policy, which would favor local production and procurement in strategic sectors, including electric vehicles and batteries. The measure is intended to reduce Europe’s dependence on Chinese suppliers and reinforce domestic industrial capacity. EU lawmaker Anna Cavazzini said support for the IAA and calls to strengthen it are expanding, adding that the bill could become a core part of the bloc’s response to China’s aggressive trade policies.
The United States is also increasing pressure on companies tied to Chinese battery suppliers. According to Reuters, U.S. Transportation Secretary Sean Duffy sent a letter to Ford Chief Executive Officer Jim Farley on Sept. 8 urging the company to end transactions with CATL, Geely, and BYD. He cited concerns about Ford’s battery production at a Michigan plant using CATL technology, as well as other cooperation involving Geely. Industry observers said this could work in favor of SK On, which supplies batteries to Ford.
Data from SNE Research show that in the first half of this year, CATL’s battery usage in the global EV battery market excluding China rose 41.7% year over year to 90.5 gigawatt-hours, lifting its market share from 30.0% to 33.6%. BYD also posted strong growth. By contrast, combined usage by LG Energy Solution, SK On, and Samsung SDI fell 6.3% to 74.3 GWh, and their combined market share slipped to 27.6% from 37.2%.
Analysts say Korean battery makers may benefit if governments in Europe and the United States continue to prioritize supply chain security and local sourcing. Peter Handley, a former senior European Commission official, recently said the EU should cooperate more closely with Korea on battery production. The three Korean companies already have more than 173 GWh of production capacity in Hungary, Poland, and other locations.
Similar scrutiny is also extending to energy storage systems, while Chinese authorities have recently reviewed battery capacity and paused some project approvals. Korean firms are expanding ESS production in North America as they seek to capture demand from shifting market conditions.
Source: BusinessKorea
