Korean media: South Korea's battery market share is only 19%, and China has completely taken over the leadership!
On December 27, the Korean media "Global Economy" published an article stating that the South Korean battery industry, which lost its leadership to China, is facing development difficulties in the global market.
Last year, South Korea's market share fell below 20%, at just 19%. The export of rechargeable batteries has also declined for the second consecutive year. The status of South Korea as a "battery power" is being challenged.
China once captured the market with price advantages, and now it is also on par with South Korea in terms of product quality, making the position of South Korean companies increasingly smaller.
As of last year, South Korea's global market share of electric vehicle rechargeable batteries dropped to 19%.
In 2020, this proportion reached 35%, keeping pace with China, but within four years, this number dropped by half. Japan dominated the market in the 1990s, but since 2020, its market share has sharply declined, shrinking to below 10%.
While Japan has lost its presence and even South Korea is struggling, China has rapidly grown. It holds more than 70% of the global market share, gaining control.
In the rechargeable battery market, electric vehicles account for the largest share, at 70%. Energy storage systems (ESS) account for 19%, and IT and small electronic devices account for 11%.
92.5% of the output of South Korea's three major battery companies is produced overseas. They operate 20 production plants in the United States, Poland, Hungary, and China.
Rechargeable batteries are key basic technologies supporting carbon neutrality and future mobility. Especially for electric vehicles and energy storage systems, safe and economical battery technology is crucial, and these two pillars are essential for achieving carbon neutrality.
This year, South Korea's rechargeable battery exports are also facing difficulties, declining by more than 10%. As of October this year, the total export value was only 5.84 billion U.S. dollars, a significant decrease of 13.1% compared to the same period last year.
Last year, South Korea's rechargeable battery exports also dropped sharply to 8.2 billion U.S. dollars, a decrease of 16.6% from the previous year (9.83 billion U.S. dollars). If the current trend continues, it is expected that the export volume will fall by more than 10% for the second consecutive year.
The main reasons for South Korea's difficulties in the global battery market are two-fold.
Firstly, China has always prioritized price competitiveness, and now with the improvement of quality competitiveness, its market share is rapidly growing in major markets such as the EU and ASEAN.
Additionally, due to policy changes by the Trump administration, the U.S. market is shrinking, and with increasingly strict EU regulations, growth has significantly slowed down.
South Korea plans to invest 28 billion won (about 1.35 billion yuan RMB) by 2029 to lead the research and development of next-generation batteries, and support the infrastructure, standards, and patents for commercialization after R&D.
However, whether this level of support is sufficient to ensure its advantage in the competition with China remains questionable. Industry experts generally believe that China is already leading in next-generation battery technology.
Original article: toutiao.com/article/1852649514259467/
Statement: This article represents the views of the author.