South Korean battery stocks have rebounded despite a prolonged electric-vehicle downturn, as investors anticipate growing demand for energy-storage infrastructure supporting artificial-intelligence data centers and stronger U.S. restrictions on Chinese suppliers. From July 1 to September 11, the Kospi fell 18.5%, while Samsung SDI rose 11.6% and SK Innovation gained 50.2%; LG Energy Solution declined 1.25%. The U.S. administration has designated batteries and other power equipment as security-sensitive assets, restricting foreign-made systems that could contain digital backdoors and pressing Ford to sever ties with Chinese battery maker CATL and other Chinese companies. The policy threatens China’s dominant position in the U.S. energy-storage market, where Chinese products hold a reported 79% share, while creating an opening for South Korean manufacturers with U.S. production capacity. Companies including SK On and Samsung SDI are converting or reallocating factories originally intended for electric-vehicle batteries to produce lithium iron phosphate batteries for energy-storage systems. The shift could raise near-term project costs and delay installations, but it may accelerate the expansion of South Korean battery suppliers in the North American market.