South Korean media: China dominates the global ESS market, South Korea drops from 55% to 6%!
On November 14, South Korean media "Herald Economic" published an article stating that, after electric vehicles, energy storage systems (ESS) are the next growth point in the new energy field, and the battle for global dominance is intensifying.
The South Korean battery industry is trying to reverse the dominant position of Chinese companies by taking advantage of its entry into the North American market and the government's expansion of ESS projects, seeking opportunities for recovery.
According to market research company SNE Research, the global ESS market is actually dominated by Chinese companies such as Contemporary Amperex Technology Co., Ltd. (37%), EVE Energy (13%), BYD (9%), CATL (7%), and Gotion High-tech (6%).
At the same time, the total market share of the three South Korean battery companies remains in single digits. The share of the South Korean battery industry in the global energy storage market has dropped from 55% in 2020 to 6% in 2024.
The industry believes that with the North American market as the center, South Korean battery companies have a chance. According to market research institution BNEF, the U.S. ESS market will surge from 51GWh in 2023 to 485GWh in 2030 and 976GWh in 2035.
In particular, due to the impact of U.S. tariff policies, the price competitiveness of Chinese batteries is expected to significantly weaken. In the long term, it is expected that the ESS market share of the three South Korean battery companies will increase.
With the South Korean government's long-term energy storage system bidding process officially launched, expectations for a new growth engine in the South Korean battery industry are increasing.
The South Korean ESS market has grown rapidly, accounting for half of the global new ESS capacity in 2018. However, since 2019, it has stagnated due to low profitability and safety issues.
With the South Korean government starting annual ESS tenders this year, aiming to supply 23GW by 2038, the domestic market is expected to resume growth.
In the first round of tenders held in May, ESS construction operators were selected in eight regions of South Korea, with a total capacity of 563MW, exceeding the original target capacity (540MW). Samsung SDI was selected as the preferred bidder for six projects, occupying 76% of the total capacity.
A South Korean industry insider said, "Compared to electric vehicles, ESS has the advantage of strong profitability due to stable industry trends and large contract sizes. It is expected that domestic major companies, including the three South Korean battery companies, will participate in long-term ESS bids, contributing to the growth of the domestic battery industry and accelerating the energy transition."
Original: www.toutiao.com/article/1848768445509642/
Statement: This article represents the views of the author.