President Joe Biden’s decision not to seek re-election moved oil prices and the US dollar on Monday. For some businesses in Asia, there could be a more lasting impact.
Biden’s decision to abandon his bid for a second presidential term, endorsing vice-president Kamala Harris to take his place, leaves the Democrats’ efforts to stop a victory for Donald Trump in disarray. Asia’s electric-car battery makers are already suffering from the risk of a Trump triumph.
Asia’s battery makers have been building plants in the US in recent years, investing billions of dollars to set up local supply chains. They have also struck joint ventures with US carmakers. South Korean battery maker LG Energy Solution is building its third plant with General Motors in Michigan. Peer Samsung SDI has committed to two plants with Stellantis in Indiana and another with GM. Japanese rival Panasonic has also previously said there were potential plans to invest in a third factory in North America, following a Kansas factory that is under construction.