Secondary battery-related stocks are all surging in the domestic stock market. This is interpreted as being driven by news that Chinese battery manufacturers have largely withdrawn from the U.S. market due to stringent regulations. Expectations of accelerated growth in the energy storage system (ESS) industry also appear to be partially reflected.
As of 11:06 a.m. on the 19th, Samsung SDI is trading at 576,000 won, up 46,000 won (8.68%) from the previous close, LG Energy Solution is at 424,000 won, up 21,000 won (5.21%), and SK Innovation is at 158,900 won, up 6,900 won (4.54%) in the KOSPI market.
Secondary battery stocks are also strong in the KOSDAQ market. At the same time in the KOSDAQ market, Almax is trading at 63,250 won, up 11,450 won (22.10%) from the previous close; Sangshin EDI is at 25,800 won, up 2,400 won (10.26%); WCP is at 11,140 won, up 730 won (7.76%); Sinsung ST is at 29,000 won, up 2,000 won (7.41%); EcoPro is at 86,600 won, up 5,300 won (6.52%); and EcoPro BM is at 111,900 won, up 5,000 won (4.68%).
In addition, SM Bexell reached the upper price limit at 4,040 won, up 29.90%, while Lotte Energy Materials rose 14.17% and Solus Advanced Materials gained 8.85%.
, POSCO Future M climbed 8.28%, EcoPro Material rose 8.07%, and Sepang Battery increased by 5.97%, showing strong gains.
This phenomenon is interpreted as a combination of spillover benefits for Korean companies resulting from U.S. supply chain regulations against China, and expectations that the ESS market for AI (artificial intelligence) data centers is expanding faster than anticipated.
Taiwan's IT specialist media outlet Digital Times reported on the 19th (local time) that Chinese ESS companies have effectively abandoned their U.S. operations. The outlet stated, "Due to multiple blows including high-intensity U.S. legal restrictions, overlapping tariffs, and strict equity reviews, major Chinese ESS firms that once led the U.S. market are reportedly withdrawing from collective business operations in the country this year."
The securities industry believes that domestic secondary battery companies can enjoy spillover benefits, as it is highly likely that containment measures by the U.S. and Europe against China will be strengthened after the conclusion of the U.S. midterm elections in November. In particular, the EU (European Union) is also pushing for the enactment of the Industrial Acceleration Act (IAA), which would restrict the procurement of Chinese-made batteries.
Jang Jung-hoon, a research analyst at Samsung Securities, explained, "After the third-quarter earnings season, the market may again focus on policy events related to decoupling from China in the U.S. ESS market."
Regarding the growth of the ESS market, Kim Seok-hwan, a research analyst at Mirae Asset Securities, said, "The ESS market is showing faster-than-expected growth, centered on North America," adding, "Following record-high new ESS installations in the second quarter, further expansion of new installations is expected in the third quarter."
Yoo Chang-geun, a research analyst at IBK Investment & Securities, also stated, "Eco-friendly energy is primarily adopted as a power source for AI data centers, but solar and wind power have intermittency issues, which are being supplemented through ESS," adding, "This demand is driving the U.S. secondary battery market."
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