---
title: "Rising EV Battery Market Risks Prompt Producers to Reconsider Strategies, S&P Says"
description: "Rising volatility in the global EV battery market is prompting producers to reassess strategies, according to S&P Global Ratings. Factors such as increased US tariffs, production policies, and China's"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/256924276.md"
published_at: "2025-09-11T12:10:42.000Z"
---

# Rising EV Battery Market Risks Prompt Producers to Reconsider Strategies, S&P Says

> Rising volatility in the global EV battery market is prompting producers to reassess strategies, according to S&P Global Ratings. Factors such as increased US tariffs, production policies, and China's export limitations on lithium technologies are influencing this shift. The agency forecasts a slowdown in EV battery demand growth, predicting a dip to 29% in 2025, with further declines in subsequent years. Korean manufacturers are expected to boost US capacity, while Panasonic may reduce capital expenditures and Contemporary Amperex Technology will expand into non-US markets.

(MT Newswires) -- Rising volatility in the global electric vehicle (EV) battery market will prompt producers to reassess their geographical positioning, S&P Global Ratings stated in a Thursday release.

The EV supply chain faces risks from increased US tariffs, policies supporting greater production in the US, and China's export limitations on lithium technologies, S&P credit analyst Stephen Chan said.

The US and Europe may adopt battery EVs at a slower rate, while China will remain a major supporter of the EV market, the rating agency said.

EV battery demand growth worldwide will dip to 29% in 2025 and to 18% and 16% in the next two years, which are slightly more sluggish than S&P's previous forecasts.

The rating agency expects rated Korean EV battery makers to continue efforts to increase their US capacity, which should bode well over time, albeit pressuring leverage in the near term.

Japan's Panasonic Holdings (TYO:6752) could taper its capital expenditures while China's Contemporary Amperex Technology (SHE:300750) will further expand to non-US markets given its solid cash position, S&P said.

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.