Korean Media: South Korea's "Big Three" Battery Giants See Sharp Decline in Market Share Amid Rivalry with Chinese Firms!

On March 23, Korean media outlet *Herald Economic* published an article stating that data shows the global electric vehicle (EV) battery market outside China continued its double-digit growth trend last year. However, the market share of South Korea’s three major battery companies has significantly declined. As Chinese firms such as CATL and BYD rapidly expand their overseas presence, the industry’s competitive landscape is undergoing a major transformation.

According to SNE Research, the total installed capacity of EV batteries worldwide—excluding China—reached 463.3 gigawatt-hours (GWh) from January to December last year. Despite concerns over slowing EV demand growth, this figure saw a substantial 26% year-on-year increase, maintaining a strong upward momentum. In contrast, during the same period, the combined market share of South Korea’s top three battery manufacturers dropped by a significant 7.4 percentage points year-on-year to 36.3%.

Looking at individual companies, LG Energy Solution maintained its second-place position with a year-on-year increase of 5.4%, recording 95.1 GWh. SK On ranked third with 44.4 GWh, growing by 12%. Meanwhile, Samsung SDI recorded only 28.9 GWh, declining by 6.7% and dropping to sixth place.

LG Energy Solution primarily supplies batteries to automotive brands including Tesla, Chevrolet, Kia, and Volkswagen. Although Tesla’s sales have been sluggish, the expansion of Chevrolet’s EV lineup, along with strong performances from models like Kia EV3 and Hyundai Casper EV, collectively drove overall growth. However, strategic adjustments may be necessary due to the termination of its battery supply agreement with Ford and ongoing operational adjustments at its North American plants.

SK On’s battery products are used by automotive groups including Hyundai Motor Group, Mercedes-Benz, Ford, and Volkswagen. Nevertheless, the discontinuation of the high-capacity battery-equipped Ford F-150 Lightning model has negatively impacted its overall performance.

Samsung SDI’s main clients include renowned companies such as BMW, Audi, LIAO (likely referring to Li Auto), and Jeep.

The influence of Chinese enterprises is also increasingly evident in markets outside China. CATL’s battery usage rose by 35.7% year-on-year, firmly holding the top global position. BYD surged to second place with a 27.7% growth rate. Notably, BYD’s battery deployment in Europe increased by an impressive 201.4% year-on-year, reaching 14.9 GWh, demonstrating particularly robust overseas expansion. BYD is further enhancing its cost competitiveness by increasing investment in sodium-ion battery technology.

SNE Research analysis stated: “Although the global battery market outside China continues to grow, the widespread expansion of Chinese companies’ market share has already taken shape, gradually eroding the market position of South Korea’s three major players. Uncertainty surrounding EV demand in North America, coupled with the growing market share of Chinese manufacturers in Europe, will continue to exert pressure on South Korean companies’ shipment volumes and profitability this year.”

Original article: toutiao.com/article/1860439243588620/

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