The US and South Korea have been brought closer together as both countries seek to reduce their dependence on Beijing in green technology and chips. The US overtook China as South Korea’s top export market last year for the first time since the early 2000s, while South Korean companies have been among the largest foreign investors in the US semiconductor and clean-tech sectors.
But with proximity comes friction, as decisions made in one country shape events in the other. This dynamic is especially apparent in the battery industry for electric vehicles, as Korean executives and officials grow increasingly concerned about a lack of clarity from US policymakers as to the implementation of the Inflation Reduction Act, the Biden administration’s landmark climate legislation
Korean companies are central to US efforts to spur adoption of electric vehicles. According to SNE Research, Korean firms, which are spending billions of dollars building plants across the US, are the second biggest producers of EV batteries with an expected market share of 18 per cent in 2025 — or 60 per cent of the world’s non-Chinese battery capacity. Hyundai and its sister brand Kia have together overtaken Ford and General Motors to claim second place in US electric vehicle sales behind Tesla, with their market share set to grow once a new $7.6bn plant in the state of Georgia starts production later this year.