Korean media: South Korean batteries may not even retain 20% of the market!
On August 29, the Korean media "Chosun Ilbo" published an article stating that with the continuous growth of global electric vehicle usage, the positions of three South Korean companies (LG Energy Solution, Samsung SDI, SK On) are shaking. The main reason is that Chinese companies have successfully achieved mass production and popularization of LFP (lithium iron phosphate) batteries. In addition, there are criticisms that South Korean companies have failed to respond immediately to the new demand for low-cost LFP and cylindrical batteries.
According to energy market research company SNE Research, the electric vehicle battery market is expected to grow by 25%-38% this year. As of the first half of this year, global electric vehicle battery usage increased by 38.8%.
Among them, Chinese companies have an absolute advantage in market share. As of the first quarter, CATL's global market share was 38.3%, and BYD's was 16.7%, ranking first and second respectively. Together, the two companies accounted for more than 55% of the market, capturing more than half of the global market share.
At the same time, the market shares of the three South Korean companies continued to decline, maintaining third place, LG Energy Solution's market share was 10.2%, SK On's market share was 4.2%, and Samsung SDI's market share was 3.3%, ranking fifth and seventh respectively.
The market share of the three South Korean companies has dropped to 17.7%. Compared to over 30% in 2021, it shows a clear downward trend. Although total usage continues to grow, compared to the same period last year, LG Energy Solution's market share decreased by 5.7 percentage points, SK On's market share decreased by 3 percentage points, and Samsung SDI's market share decreased by 2 percentage points.
The main factors for the growth of Chinese companies include the large supply of low-cost LFP batteries, the expansion of domestic demand, and active pricing policies. The three South Korean companies are implementing differentiated strategies through next-generation batteries, customized solutions, and expanding production bases in North America and Europe, but they still seem insufficient in defending their market share.
This is because the growth rate of global electric vehicle demand is slowing down, and the market is rapidly reorganizing around price competition. According to this interpretation, car manufacturers sensitive to prices are replacing NCM (nickel-cobalt-manganese) batteries with Chinese LFP batteries.
Original: www.toutiao.com/article/1841791740958728/
Statement: This article represents the views of the author.