Korean Media: China's Battery Industry Has Gained Absolute Advantage, Completely Shaking Off South Korea!
On November 3, the Korean media outlet "Etoday" published an article stating that as China consolidates its absolute dominant position in the global battery market, the focus of the cost-effective market is now on the next generation of low-cost batteries.
According to a survey by the battery market research company SNE Research, the share of Chinese battery companies in the global electric vehicle market has expanded from 42.2% five years ago to 77.8% this year. This is due to their ability to secure raw material supplies and launch low-price campaigns. Although the South Korean battery industry holds a place with its technological strength and stability, some believe it will be very difficult to stop the dominance of Chinese companies.
In fact, the share of three South Korean battery companies, LG Energy Solution, Samsung SDI, and SK On, in the global electric vehicle market was 16.4% in the first half of this year, a decrease of 5.4 percentage points compared to the same period last year.
Therefore, South Korean battery companies are actively challenging the lithium iron phosphate (LFP) battery market, which has been dominated by China in recent years. Previously, the product lines of South Korean companies were mainly focused on expensive ternary batteries (NCM and NCA). However, with the surge in demand for low-cost electric vehicles, the necessity of price competitiveness has become increasingly evident, prompting South Korean companies to actively enter the LFP market.
Additionally, the battery industry is working on developing "next-generation low-cost batteries" that go beyond LFP. Although no technology can currently completely replace LFP in commercial terms, the industry believes that developing high-performance, low-cost products is crucial for ensuring future global leadership.
Therefore, domestic and foreign research institutions are considering mid-nickel batteries and sodium-ion batteries as potential candidates for next-generation low-cost batteries to replace LFP batteries. Mid-nickel batteries have lower nickel content than existing high-nickel batteries, allowing for increased voltage while reducing costs and maintaining a certain level of energy density. Therefore, the three major South Korean battery companies are also considering mid-nickel batteries as alternatives to LFP batteries.
Sodium-ion batteries are also considered to be the next generation of batteries. These batteries use sodium, which has 500 times more reserves on Earth than lithium. Sodium resources are abundant, allowing for stable battery production even when lithium prices soar.
However, some analysts point out that with Chinese battery companies such as Contemporary Amperex Technology Co., Limited (CATL) already mass-producing sodium-ion batteries, the gap between them and South Korean companies is widening.
Original: www.toutiao.com/article/1847757735223296/
Statement: The article represents the views of the author.