Korean Media: South Korea's Big Three Battery Firms Fall Below 30% Market Share, Unable to Compete with Chinese Companies!

On June 10, Korean media outlet Newdaily published an article stating that the global standing of South Korea’s three major battery manufacturers is increasingly declining. While electric vehicle (EV) battery usage outside China continues to grow at double-digit rates, the market share of South Korea’s top three battery makers has declined once again. This is primarily due to a slowdown in EV market growth in North America and aggressive market expansion by Chinese battery companies.

According to data released by SNE Research, total EV battery consumption in markets outside China reached 117.4 GWh in the first quarter of this year, a 17.4% increase compared to the same period last year.

Meanwhile, the combined market share of the three South Korean battery companies—LG Energy Solution, SK On, and Samsung SDI—stood at 29.6% during the same period, down 8.3 percentage points from the previous year.

Breaking it down by company: LG Energy Solution saw its output decline by 0.1% to 20.3 GWh; SK On dropped 10.2% to 9.0 GWh; and Samsung SDI fell by 27.7% to 5.3 GWh.

Conversely, Chinese battery firms CATL and BYD both expanded their global market shares. Together, their combined market share in the first quarter reached 51%, up 14 percentage points from 37% in the same period last year.

The growing market share of Chinese battery manufacturers can be attributed not only to Chinese automakers but also to increased adoption of Chinese-made batteries by South Korean carmakers such as Hyundai Motor, Kia, and KG Mobility in recent times.

Looking at South Korean battery manufacturers: LG Energy Solution’s batteries are primarily used in vehicles produced by major automakers including Tesla, Chevrolet, Kia, and Volkswagen. The significant increase in Tesla’s battery installations was mainly driven by strong sales of the Model Y and Model YL. Kia has also increased its use of LG Energy Solution batteries following the launch of new models like the EV4 and expanded sales of certain models. Similarly, battery installations for Renault and Skoda have grown, reflecting improved sales of their core electric vehicle models.

Samsung SDI previously supplied large volumes of batteries to BMW, Audi, and Rivian. However, as sales of these key clients’ EVs slowed, Samsung SDI’s battery installations declined accordingly. Particularly for clients heavily reliant on the North American market—such as Rivian and Jeep—the downturn in U.S. EV sales directly impacted their installation volumes, leading to further declines and notable consequences.

SK On’s batteries are mainly installed in vehicles from major automakers including Hyundai Motor Group, Mercedes-Benz, Ford, and Volkswagen.

The Hyundai Motor Group’s battery capacity increased due to stable sales of the Ioniq 5 and the launch of the new Ioniq 9. However, overall battery capacity declined due to slower EV sales among key clients such as Kia, Mercedes-Benz, and Volkswagen. Notably, Ford experienced a sharp drop in sales after discontinuing the F-150 Lightning, making it the primary reason behind SK On’s reduced battery usage.

Panasonic, one of Tesla’s main suppliers, recorded battery usage of 9.1 GWh in the first quarter of this year—an increase of 4.0% compared to the same period last year. However, concerns about potential future declines in battery demand have emerged following Tesla’s decision to discontinue production of the Model S and Model X, which reduces its high-end vehicle lineup.

SNE Research evaluates that “in the first quarter of this year, Chinese companies further solidified their dominance in the global battery market, while South Korean firms face mounting profit pressures. Future competitiveness will no longer depend solely on simple capacity expansion, but rather on diversification across regions, customers, and product portfolios, as well as exploring new demand sources beyond electric vehicles.”

Original source: toutiao.com/article/1867594581245960/

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