Korean battery firms face US pressure as EV plans slow

South Korean battery makers SK On, LG Energy Solution, and Samsung SDI are facing more pressure in the US as automakers cancel or delay EV projects, and disrupt planned battery deals.

SK On is reviewing a US$10 billion supply plan with Nissan after the carmaker dropped a US$500 million EV SUV project after earlier ending a joint venture with Ford.

LG Energy Solution ended a Canadian joint venture with Stellantis in February and faces a first-half shutdown at Ultium Cells with GM.

Samsung SDI is still discussing delayed projects with Stellantis and GM.

The companies are now leaning on Europe.

LG Energy Solution and Samsung SDI have battery deals with BMW and Mercedes-Benz, while SK On has raised output in Hungary.

🔗 Source: The Korea Times

🧠 Food for thought

Implications, context, and why it matters.

The US pullback brings a costly setback

After the Trump administration ended consumer tax credits, US battery electric vehicle sales fell an estimated 28% in the first two months of 2026 1.
Ford and Stellantis are now taking heavy charges to shrink EV plans, with more than US$19 billion at Ford and US$26 billion at Stellantis 1.
The damage has spread to South Korean suppliers. LG Energy Solution recorded its first first-quarter operating loss, at 207.8 billion won (US$141 million) 2.
Stellantis also sold its 49% stake in NextStar Energy, a Canadian battery venture with LG Energy Solution once valued at about 1.4 trillion won (US$964 million), for US$100 3.

A two-track plan takes shape

In North America, South Korean battery makers are converting some EV battery lines to energy storage system (ESS) batteries that help steady power grids and support AI data center power needs 1.
That move may only buy time because ESS contracts depend on competitive bids and often use lower-margin lithium iron phosphate (LFP) cells 3.
Europe offers a richer opening. LG Energy Solution has signed a deal worth around 10 trillion won (US$6.8 billion) to supply BMW with 46-series cylindrical batteries for about 10 years 4.
The result is a split approach. The companies chase premium EV deals in Europe while using the more commoditized ESS business to absorb part of roughly US$45 billion in North American investments announced from 2021 to 2025 1.