South Korean battery manufacturers are experiencing a collective boost in stock prices as automakers, led by Hyundai Motor Company, begin to disclose their electric vehicle (EV) battery suppliers. (Image courtesy of Yonhap)
SEOUL, Aug. 14 (Korea Bizwire) – South Korean battery manufacturers are experiencing a collective boost in stock prices as automakers, led by Hyundai Motor Company, begin to disclose their electric vehicle (EV) battery suppliers.
This trend reflects growing investor confidence that South Korean firms, with their superior technology compared to Chinese competitors, could increase market share as transparency in the EV battery supply chain improves.
According to the Korea Exchange on August 12, stock prices rose across the board for battery manufacturers, from industry giants like LG Energy Solution, Samsung SDI, and POSCO Future M to smaller firms such as Daejoo Electronic Materials.
Samsung SDI closed 3.06% higher at 319,500 won, while LG Energy Solution ended the day up 2.02% at 328,500 won.
Other related stocks also saw gains, including SK Innovation (up 0.99%), which owns battery maker SK On, POSCO Future M (up 1.22%), Ecopro Materials (up 2.76%), and Daejoo Electronic Materials (up 2.04%).
The rally in battery-related stocks comes in the wake of Hyundai’s decision to disclose its battery suppliers following a recent electric vehicle fire incident that raised safety concerns among consumers.
This move is seen as potentially beneficial for South Korean manufacturers who, despite their technological edge, have faced fierce competition from Chinese rivals on pricing.
The catalyst for this shift was a fire involving a Mercedes-Benz EQE electric vehicle in an underground parking lot in Cheongna, Incheon. The battery in the vehicle was reportedly manufactured by China’s Farasis Energy.
Following the incident, consumers have been pressuring automakers to provide detailed information about the batteries used in their electric vehicles, including the manufacturer and specifications.
BMW is also reportedly considering disclosing its battery supplier information, following Hyundai’s lead.
The market views this trend favorably for South Korean battery makers, as the increased transparency could lead to a preference for their higher quality, albeit more expensive, products over cheaper alternatives.
Kevin Lee (kevinlee@koreabizwire.com)
