South Korean media: "The Western battery dream is collapsing," the global top five battery companies are on the rise!
On October 24, South Korean media "Today's Finance" published an article stating that American next-generation battery company Natron Energy has withdrawn its plan to build a $1.4 billion factory and laid off staff, which actually means it is on the verge of bankruptcy.
As the temporary stagnation of electric vehicle demand continues to cause business disruptions for battery companies in North America and Europe, it is predicted that the "top five" system, including South Korean battery companies, will become more solid.
According to industry insiders, sodium-ion battery manufacturer Natron Energy has permanently closed its headquarters in California and its factory in Michigan, and laid off employees.
The company recently also suspended its planned $1.4 billion new factory in North Carolina, while about a year ago, the company announced this investment with the support of the U.S. government.
This was affected by the temporary stagnation of electric vehicle demand.
It is understood that Natron Energy expanded its business using the price competitiveness and environmental friendliness of sodium-ion batteries, but has always struggled to attract investment and secure new orders.
Previously, Europe's largest battery company, Sweden's Northvolt, went bankrupt in the price competition, and Norway's Freyr also withdrew its plan to invest $2.6 billion in building a battery plant in Georgia.
In response, battery expert analyst Christopher Chico posted on social media: "The battery dream of the West (North America and Europe) is constantly collapsing, while Asian companies are engaging in a long-term battle and establishing competitive advantages."
Indeed, the global battery market is dominated by Asian companies. Data from market research company SNE Research shows that the top ten companies in global electric vehicle battery usage this year are all Asian companies.
In the first half of this year, the top five companies (CATL, BYD, LG Energy Solution, Contemporary Amperex Technology Co., Limited, SK On) accounted for 73.4% of the market share, effectively controlling the global market.
This trend is also evident in the most competitive Chinese domestic market for electric vehicle batteries.
According to statistics from the China Automotive Battery Innovation Alliance (CABIA), in the first eight months of this year, CATL (45.2%) and BYD (24.1%) accounted for approximately 70% of the market share in the Chinese battery market, while the third-ranked Contemporary Amperex Technology Co., Limited only reached about 7.4%.
The concentration of leading enterprises can be interpreted as high entry barriers in the battery market in terms of technology and capital.
As top companies continue to sign large contracts with global automakers, the space for other companies to participate becomes increasingly narrow.
Original: www.toutiao.com/article/1846868543312019/
Statement: This article represents the views of the author.