South Korean media: Profit difference of more than 10 times, CATL leads South Korean battery companies comprehensively!

On November 22, the South Korean media "Herald Economic" published an article stating that the global leading position of Chinese company CATL in the battery market is significantly expanding. Its sales and profitability have both exceeded the three major South Korean battery companies (LG Energy Solution, Samsung SDI, and SK On). Differences in industrial structure and policy support are considered to be the reasons for the widening competitive gap.

According to the recent "Analysis Report on the Competitive Strength of Leading Chinese Manufacturers (CATL · BYD)" released by SNE Research, CATL's sales in 2024 reached 362 billion yuan (about 69 trillion KRW), which is more than four times the average of the three South Korean companies (about 16 trillion KRW); its operating profit was 50.7 billion yuan, with a difference of more than ten times compared to the average of the three South Korean companies.

CATL has 23,460 R&D personnel, seven times the average of the three South Korean companies (3,087 R&D personnel). CATL allocates more than 15% of its employees to the R&D department and continues to reinvest 5%-7% of its annual sales revenue into R&D.

The report pointed out that CATL's "vertical integration value chain" is a key competitive factor. By establishing an integrated production structure covering raw materials, materials, cells, battery packs, and recycling, the company minimizes costs and shortens delivery cycles. The report concluded that this advantage, along with China's policy support for the industry and strong domestic market foundation, is accelerating the expansion of equipment investment and OEM network.

At the same time, South Korean companies achieved growth through a global supply chain led by the private sector. However, they rely heavily on China for core materials and depend on demand from整车厂 (OEMs), which limits their profitability and investment capabilities.

SNE Research said: "Although their technical capabilities have reached similar levels, China shows overwhelming advantages in speed, scale expansion, and cost efficiency."

Original: www.toutiao.com/article/1849476444648459/

Statement: This article represents the views of the author himself.