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China’s EV Battery Dominance: The Need for US-South Korea Cooperation

China’s EV Battery Dominance: The Need for US-South Korea Cooperation

Full Title: China's EV Battery Dominance: The Need for US-South Korea Cooperation
Author(s): David K. Gattie and Chase W. Duncan
Publisher(s): Energy Information Reform Project
Publication Date: May 15, 2024
Full Text: Download Resource
Description (excerpt):

Global demand for electric vehicles (EVs) is rising sharply owing to advancing technology, declining manufacturing costs, and policies to encourage or force EV adoption in the United States (federal tax credits, state regulations phasing out internal combustion engine [ICE] vehicles), the European Union (rules to phase out ICE vehicles), and China (tax incentives, manufacturing subsidies, and dedicated government procurement initiatives). Demand for EVs has in turn stimulated demand for EV batteries.

China’s large internal market and significant government investment and subsidies have propelled the country’s EV and battery manufacturers into a dominant role in global markets. This situation not only establishes supply chain dependencies in the United States and allied countries, but also allows China to build economies of scale and to secure technological leadership. More problematic, it provides China’s companies (and potentially China’s government) with important leverage in dealing with both their suppliers and their customers.

The United States and its allies have common interests in competing with China but are also competing with one another, something that complicates efforts at cooperation. Nevertheless, cooperation among America and its allies will be necessary to contend with China’s powerful role in EV and battery markets. South Korea can be an especially important US partner.

All statements and/or propositions in discussion prompts are meant exclusively to stimulate discussion and do not represent the views of, its Partners, Topic Directors or Experts, nor of any individual or organization. Comments by and opinions of Expert participants are their own.

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