Latest news with #SNEResearch
Korea Herald
5 days ago
- Automotive
- Korea Herald
Will new Nexo revive shrinking hydrogen mobility push?
Hyundai set to boost hydrogen-driven eco-friendly transition with new fuel cell SUV, but market interest in hydrogen mobility remains low Hyundai Motor is set to launch the fully revamped Nexo as early as this month in Korea, seven years after introducing its sole fuel-cell-powered sport utility vehicle currently on the market. With improved performance and fuel efficiency over its predecessor, the new Nexo is positioned to lead Hyundai's initiative to drive the global transition to hydrogen mobility — a vision first outlined in 1998 by Chung Mong-koo, honorary chair and father of current Chair Chung Euisun. 'Nexo represents the essence of sustainable mobility proposed by Hyundai Motor,' said Chung Yoo-seok, executive vice president of Hyundai Motor, during the vehicle's unveiling at the Seoul Mobility Show in April. 'We will accelerate the expansion of the global hydrogen ecosystem beyond Korea's borders and aim to achieve our annual sales target of 11,000 units.' However, recent market conditions cast uncertainty over the ambitions of the world's leading hydrogen vehicle maker. Declining demand for fuel cells In recent years, Korea's fuel-cell electric vehicle market has declined. According to SNE Research, sales dropped from 10,336 vehicles in 2022 to 3,688 in 2024, marking a 65 percent decrease. This downturn reflects deeper structural challenges for FCEVs, rather than a temporary pause, as the transition to eco-friendly mobility is increasingly driven by battery electric vehicles, experts said. 'Many consumers are still hesitant even about EVs, which are far more familiar,' said an industry source who requested anonymity. 'So it's no surprise that skepticism runs even deeper when it comes to hydrogen.' Limited charging access and high hydrogen fuel prices also remain major hurdles for fuel cell mobility. Korea has around 221 hydrogen stations — more than Japan, the US or Germany — but drivers still face inconvenience when refueling. 'Due to amplified safety concerns, strict regulations have resulted in limited station hours and the placement of stations far from residential areas, even though such risks can be mitigated through multiple layers of safety measures,' said Lee Ho-geun, professor of automotive engineering at Daeduk University. Amid these ongoing challenges, the launch of the new model is expected to have a limited impact on the market. Hyundai sold around 750 FCEVs domestically in the first quarter of 2025, and projections suggest that total annual sales may remain close to last year's levels despite the new launch. The global market also shows limited reason for optimism, with only Hyundai and Toyota currently active in the passenger hydrogen vehicle segment. Worldwide sales of FCEVs dropped from 20,704 sales in 2022 to 12,866 in 2024. The decline appears sharper in the passenger segment because China, which has grown to account for 55 percent of global FCEV sales, remains focused mainly on commercial rather than private vehicles. 'Globally, the eco-friendly vehicle market is still largely driven by government policies, such as subsidies, since automakers have yet to achieve the cost and performance competitiveness needed to rival internal combustion engine models,' said Lee. 'Because many countries want to protect their local industries and lack proprietary hydrogen vehicle technology, they are not actively pursuing policies to adopt these vehicles.' Staunch commitment, but long road ahead Despite the discouraging outlook for hydrogen, Hyundai Motor Group has strengthened its momentum in hydrogen mobility efforts since last year, aiming to retain its leading position in the hydrogen mobility era expected to follow EVs. In 2024, it integrated the fuel cell business of its parts-making unit, Hyundai Mobis, into Hyundai Motor Co. to boost synergy between hydrogen technology and vehicle manufacturing. Separately, the group established an overseeing team to complete the hydrogen business value chain, moving beyond a sole focus on fuel cell production. The group also forged partnerships with rivals Toyota and General Motors to collaborate on hydrogen strategies. 'We will work with global partners and harness our full capabilities across the hydrogen value chain to accelerate the adoption of a hydrogen-powered society,' emphasized the group's Vice Chair Chang Jae-hoon at the World Hydrogen Summit 2025 in Rotterdam, Netherlands, in May. Lee also echoed Hyundai's expansion of cooperation with other companies, saying, 'Hyundai needs to expand the overall market by licensing some basic technologies to other automakers at minimal royalty fees.' However, Kim Pil-su, a car engineering professor at Daelim University, said yearslong efforts are still needed before fuel cell vehicles can become a profitable business. 'The hydrogen mobility sector still faces numerous challenges, including high costs and issues related to hydrogen generation, delivery and storage,' he said, noting that automakers in the US and Europe have abandoned plans to launch fuel-cell passenger cars. 'For hydrogen to be truly eco-friendly (to be widely accepted by countries), it must move beyond heavy reliance on fossil fuels for production. However, mass production through water electrolysis is expected to take over a decade.'
![[Graphic News] Global EV sales surge 36.9% as Chinese automakers take lead](/_next/image?url=https%3A%2F%2Fwimg.heraldcorp.com%2Fnews%2Fcms%2F2025%2F04%2F29%2Fnews-p.v1.20250429.77de250fb4cf4b4b98d1e0981e656708_T1.gif&w=3840&q=100)
Korea Herald
29-04-2025
- Automotive
- Korea Herald
[Graphic News] Global EV sales surge 36.9% as Chinese automakers take lead
Global electric vehicle sales saw a sharp rise in early 2025, with registrations jumping 36.9 percent year-over-year in January and February to a total of 2.51 million units, according to energy market research firm SNE Research. The surge underscores the growing dominance of Chinese automakers, which continue to benefit from strong government support and a thriving domestic market. Leading the global market was China's BYD, which sold 540,000 units, an 80.3 percent increase from the same period last year. Geely Group followed in second place with 287,000 units, up 79.3 percent. Tesla, which held the No. 2 spot last year, dropped to third after a 14.1 percent decline, delivering 190,000 units. Hyundai Motor Group ranked eighth with 80,000 units sold, a 15.9 percent year-on-year increase. SNE Research noted that key models such as the Ioniq 5 and EV6 have gained competitiveness through recent updates, while the newly launched Kia EV3 also helped drive global sales growth.
The Star
22-04-2025
- Business
- The Star
Trump's 145% tariff on Chinese batteries opens door for Korean rivals
SEOUL: South Korean battery manufacturers are set to benefit from the 145 per cent tariff imposed by the second Donald Trump administration in the US on Chinese-made goods, including lithium-ion batteries for energy storage systems. This significant tariff hike aims to curb the competitive edge of Chinese batteries, which previously capitalised on lower levies than electric vehicle cells. On April 10, the White House said that the 125 per cent tariffs on Chinese imports would rise from 34 per cent to 125 per cent, on top of an existing 20 per cent tariff. This unprecedented increase is part of measures addressing concerns over fentanyl influxes from China, effectively raising the prices of Chinese products 2.45 times. According to a report by the Atlantic Council, a Washington-based think tank, China exported lithium-ion batteries worth US$15.3 billion to the US last year. With tariffs, the value of these exports could soar to approximately US$37.5 billion this year if trade volumes continue at a similar scale, making Chinese cells much more expensive in the US market. South Korean market tracker SNE Research noted that Chinese firms captured an 87 per cent share of the North American ESS battery market in the same period. 'Chinese lithium iron phosphate (LFP) batteries have been well-received in the US due to their competitive pricing over Korean rivals,' said an industry source on condition of anonymity. 'These LFP products, which allow for a larger number of cells to be used compared to EVs, where the battery space is smaller, have been preferred by data centres for their cost efficiency.' The source added, 'Although Trump has left the door open for negotiations, Beijing is not budging, implementing stronger retaliative measures. Even if Washington-Beijing talks come through and reduce the tariffs set by the US, it will be unlikely for Trump to completely walk back on his tariff threat against China to return the rates to the previous 10.9 per cent levy on Chinese ESS batteries.' China was able to dominate the ESS market in the US by setting low battery export prices per kilogram, widening the gap with Korean competitors. As of last November, the cumulative Chinese exports to the US totaled 678,000 tonns – roughly 11.7 times greater than South Korea's 58,000 tonnes, according to the Atlantic Council. LG Energy Solution is shifting its focus towards cost-effective LFP batteries for the US market, moving away from nickel, cobalt and manganese (NCM) cells. 'Due to the rising uncertainties on US trade policies, we cannot predict the impact of Trump's 145 per cent tariffs on the Chinese companies,' said an LG Energy Solution official. 'But one thing we can say for certain is that, with our seven battery manufacturing facilities, we are in the best position even among Korean companies to capitalise on our early US market penetration.' The company looks to expedite mass production of LFP pouch cells at its Michigan plant by converting some of the production lines from EVs to ESS by later this year, a year ahead of its initial schedule. This strategic adjustment is intended to achieve cost-efficiency by using existing infrastructure rather than building a new facility. Last month, the battery giant forged an agreement with Taiwan-based Delta Electronics to supply ESS cells in the US worth 4 GWh, enough to power over 400,000 households, by 2030. Samsung SDI pursues a two-track strategy of advancing both its high-end nickel-based cells and LFP products for the US market. The company recently secured a US$301 million deal to supply its flagship Samsung Battery Box (SBB) 1.5 to the US-based NextEra Energy. Although the company did not specify where the SBB 1.5 cells would be produced, sources predict it would be from its Ulsan plant or Hungary facility – both of which are expected to be imposed with a 25 per cent tariff, lower than Chinese rivals' 145 per cent. While boosting the sales of the SBB 1.5, it also plans to add the LFP version to the new SBB 2.0 that boasts enhanced cost competitiveness and capacity, which is set to start mass production from the first half of next year. Samsung SDI is also considering establishing a North American production base for ESS. SK On is gearing up to launch LFP pouch cells for ESS, with the goal of achieving a meaningful outcome by late 2025. It strategically targets the US market, leveraging its Georgia plant and four new bases established through joint ventures with Hyundai Motor Group and Ford. According to Global Market Insights, a Delaware-based research firm, the US ESS sector is expected to expand from last year's US$10.67 billion to US$1.49 trillion by 2034, achieving an average annual growth rate of 29.1 per cent. - Korea Herald/ANN
Korea Herald
22-04-2025
- Business
- Korea Herald
Trump's 145% tariff on Chinese batteries opens door for Korean rivals
Korean firms ramp up US production, LFP development to take advantage South Korean battery manufacturers are set to benefit from the 145 percent tariff imposed by the second Donald Trump administration in the US on Chinese-made goods, including lithium-ion batteries for energy storage systems. This significant tariff hike aims to curb the competitive edge of Chinese batteries, which previously capitalized on lower levies than electric vehicle cells. On April 10, the White House said that the 125 percent tariffs on Chinese imports would rise from 34 percent to 125 percent, on top of an existing 20 percent tariff. This unprecedented increase is part of measures addressing concerns over fentanyl influxes from China, effectively raising the prices of Chinese products 2.45 times. According to a report by the Atlantic Council, a Washington-based think tank, China exported lithium-ion batteries worth $15.3 billion to the US last year. With tariffs, the value of these exports could soar to approximately $37.5 billion this year if trade volumes continue at a similar scale, making Chinese cells much more expensive in the US market. South Korean market tracker SNE Research noted that Chinese firms captured an 87 percent share of the North American ESS battery market in the same period. China's weakening price advantage 'Chinese lithium iron phosphate (LFP) batteries have been well-received in the US due to their competitive pricing over Korean rivals,' said an industry source on condition of anonymity. 'These LFP products, which allow for a larger number of cells to be used compared to EVs, where the battery space is smaller, have been preferred by data centers for their cost efficiency.' The source added, 'Although Trump has left the door open for negotiations, Beijing is not budging, implementing stronger retaliative measures. Even if Washington-Beijing talks come through and reduce the tariffs set by the US, it will be unlikely for Trump to completely walk back on his tariff threat against China to return the rates to the previous 10.9 percent levy on Chinese ESS batteries.' China was able to dominate the ESS market in the US by setting low battery export prices per kilogram, widening the gap with Korean competitors. As of last November, the cumulative Chinese exports to the US totaled 678,000 tons – roughly 11.7 times greater than South Korea's 58,000 tons, according to the Atlantic Council. Boon for Korean batteries? LG Energy Solution is shifting its focus towards cost-effective LFP batteries for the US market, moving away from nickel, cobalt and manganese (NCM) cells. 'Due to the rising uncertainties on US trade policies, we cannot predict the impact of Trump's 145 percent tariffs on the Chinese companies,' said an LG Energy Solution official. 'But one thing we can say for certain is that, with our seven battery manufacturing facilities, we are in the best position even among Korean companies to capitalize on our early US market penetration.' The company looks to expedite mass production of LFP pouch cells at its Michigan plant by converting some of the production lines from EVs to ESS by later this year, a year ahead of its initial schedule. This strategic adjustment is intended to achieve cost-efficiency by using existing infrastructure rather than building a new facility. Last month, the battery giant forged an agreement with Taiwan-based Delta Electronics to supply ESS cells in the US worth 4 GWh, enough to power over 400,000 households, by 2030. Samsung SDI pursues a two-track strategy of advancing both its high-end nickel-based cells and LFP products for the US market. The company recently secured a $301 million deal to supply its flagship Samsung Battery Box (SBB) 1.5 to the US-based NextEra Energy. Although the company did not specify where the SBB 1.5 cells would be produced, sources predict it would be from its Ulsan plant or Hungary facility – both of which are expected to be imposed with a 25 percent tariff, lower than Chinese rivals' 145 percent. While boosting the sales of the SBB 1.5, it also plans to add the LFP version to the new SBB 2.0 that boasts enhanced cost competitiveness and capacity, which is set to start mass production from the first half of next year. Samsung SDI is also considering establishing a North American production base for ESS. SK On is gearing up to launch LFP pouch cells for ESS, with the goal of achieving a meaningful outcome by late 2025. It strategically targets the US market, leveraging its Georgia plant and four new bases established through joint ventures with Hyundai Motor Group and Ford. According to Global Market Insights, a Delaware-based research firm, the US ESS sector is expected to expand from last year's $10.67 billion to $1.49 trillion by 2034, achieving an average annual growth rate of 29.1 percent.
Korea Herald
22-04-2025
- Business
- Korea Herald
Trump's 145% tariff on Chinese batteries opens door for Korean ESS rivals
Korean firms ramp up US production, LFP development to take advantage South Korean battery manufacturers are set to benefit from the 145 percent tariff imposed by the second Donald Trump administration in the US on Chinese-made goods, including lithium-ion batteries for energy storage systems. This significant tariff hike aims to curb the competitive edge of Chinese batteries, which previously capitalized on lower levies than electric vehicle cells. On April 10, the White House said that the 125 percent tariffs on Chinese imports would rise from 34 percent to 125 percent, on top of an existing 20 percent tariff. This unprecedented increase is part of measures addressing concerns over fentanyl influxes from China, effectively raising the prices of Chinese products 2.45 times. According to a report by the Atlantic Council, a Washington-based think tank, China exported lithium-ion batteries worth $15.3 billion to the US last year. With tariffs, the value of these exports could soar to approximately $37.5 billion this year if trade volumes continue at a similar scale, making Chinese cells much more expensive in the US market. South Korean market tracker SNE Research noted that Chinese firms captured an 87 percent share of the North American ESS battery market in the same period. China's weakening price advantage 'Chinese lithium iron phosphate (LFP) batteries have been well-received in the US due to their competitive pricing over Korean rivals,' said an industry source on condition of anonymity. 'These LFP products, which allow for a larger number of cells to be used compared to EVs, where the battery space is smaller, have been preferred by data centers for their cost efficiency.' The source added, 'Although Trump has left the door open for negotiations, Beijing is not budging, implementing stronger retaliative measures. Even if Washington-Beijing talks come through and reduce the tariffs set by the US, it will be unlikely for Trump to completely walk back on his tariff threat against China to return the rates to the previous 10.9 percent levy on Chinese ESS batteries.' China was able to dominate the ESS market in the US by setting low battery export prices per kilogram, widening the gap with Korean competitors. As of last November, the cumulative Chinese exports to the US totaled 678,000 tons – roughly 11.7 times greater than South Korea's 58,000 tons, according to the Atlantic Council. Boon for Korean batteries? LG Energy Solution is shifting its focus towards cost-effective LFP batteries for the US market, moving away from nickel, cobalt and manganese (NCM) cells. 'Due to the rising uncertainties on US trade policies, we cannot predict the impact of Trump's 145 percent tariffs on the Chinese companies,' said an LG Energy Solution official. 'But one thing we can say for certain is that, with our seven battery manufacturing facilities, we are in the best position even among Korean companies to capitalize on our early US market penetration.' The company looks to expedite mass production of LFP pouch cells at its Michigan plant by converting some of the production lines from EVs to ESS by later this year, a year ahead of its initial schedule. This strategic adjustment is intended to achieve cost-efficiency by using existing infrastructure rather than building a new facility. Last month, the battery giant forged an agreement with Taiwan-based Delta Electronics to supply ESS cells in the US worth 4 GWh, enough to power over 400,000 households, by 2030. Samsung SDI pursues a two-track strategy of advancing both its high-end nickel-based cells and LFP products for the US market. The company recently secured a $301 million deal to supply its flagship Samsung Battery Box (SBB) 1.5 to the US-based NextEra Energy. Although the company did not specify where the SBB 1.5 cells would be produced, sources predict it would be from its Ulsan plant or Hungary facility – both of which are expected to be imposed with a 25 percent tariff, lower than Chinese rivals' 145 percent. While boosting the sales of the SBB 1.5, it also plans to add the LFP version to the new SBB 2.0 that boasts enhanced cost competitiveness and capacity, which is set to start mass production from the first half of next year. Samsung SDI is also considering establishing a North American production base for ESS. SK On is gearing up to launch LFP pouch cells for ESS, with the goal of achieving a meaningful outcome by late 2025. It strategically targets the US market, leveraging its Georgia plant and four new bases established through joint ventures with Hyundai Motor Group and Ford. According to Global Market Insights, a Delaware-based research firm, the US ESS sector is expected to expand from last year's $10.67 billion to $1.49 trillion by 2034, achieving an average annual growth rate of 29.1 percent.
