LG Energy Solution flags temporary EV battery demand growth in 2024
LG Energy Solution says a temporary slowdown of global EV battery demand growth is expected this year due to several headwinds ranging from the changing pace of EV transition plans to rising competition.
IGTV financial analyst Angeline Ong explains why this echoes comments from Tesla and Hyundai Motor.
(AI Video Summary)
Global EV demand may slow down in 2024
LG Energy Solution, a major supplier of batteries to the electric vehicle (EV) market, has predicted that the growth of global EV demand may slow down in 2024. This is because car manufacturers are being cautious about the number of EVs they produce, as they want to avoid having excess stock. Additionally, the prices of EVs are still falling, which could also affect demand. Other factors that could contribute to this slowdown include uncertainties related to the U.S. election, changes in EV transition plans by carmakers and policymakers, and increased competition in Europe.
Impact on EV industry
The warning from LG Energy Solutions is noteworthy because they supply batteries to big players in the auto and EV industry, such as Tesla, General Motors, and Volkswagen. This means that their insights into the market carry weight and can give us an idea of what might happen in the industry as a whole. In fact, Tesla, one of LG Energy Solution's customers, has already mentioned the possibility of a significant slowdown in sales growth this year. Honda and Hyundai have also experienced weakness in the EV market.
In summary, it seems that there could be a temporary slowdown in the demand for EV batteries and the growth of the global EV market in 2024. This is due to several factors, including car manufacturers being cautious with their inventory, falling prices, uncertainties in the geopolitical landscape, and changes in plans by carmakers and policymakers. These developments highlight the importance of keeping an eye on the EV market and its potential challenges.
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