South Korean media: Kia's PV5 chooses Chinese batteries, putting the K-battery industry in crisis. The first electric personalized vehicle (PBV) model "The Kia PV5" launched by the Kia brand has sounded the alarm for South Korea's battery industry. Kia officially released its first electric PBV model "PV5" on the 10th of this month. PBV refers to customized vehicles designed for specific purposes. Although similar to existing commercial vehicles, they are easier to modify and optimize. The most notable feature is that PV5 is equipped with square NCM (nickel-cobalt-manganese) batteries produced by China's Contemporary Amperex Technology Co. Limited (CATL), which is currently the largest battery manufacturer in the world. Previously, the industry generally predicted that PV5 would adopt Samsung SDI products, which have competitive advantages in the field of square NCM batteries. Among South Korean battery companies, only Samsung SDI has the capability to mass-produce square NCM batteries. However, Kia ultimately chose to cooperate with CATL, which was an unexpected "turnaround." In fact, this is the second time that Kia has used CATL's NCM batteries in electric vehicles after "Niro EV." Hyundai Motor also previously used the company's NCM batteries in "Kona EV." Even expanding to the LFP (lithium iron phosphate) battery field, Kia only used CATL's LFP batteries in the small electric vehicle "Ray." So far, Chinese batteries have mainly been used in some models such as small electric SUVs and recreational vehicles. However, this time, PV5 using CATL's NCM batteries breaks the industry norm that "Korean-made batteries dominate NCM, while Chinese batteries dominate LFP." LG Energy Solution, Samsung SDI, and SK On, the three major South Korean battery manufacturers, have long focused on the development of NCM batteries. Despite being 20% to 30% more expensive than LFP batteries, NCM batteries have always been mainstream due to their high energy density and ability to extend the driving range of electric vehicles. However, in recent years, China's low-cost LFP batteries have improved in energy density and have begun to aggressively enter the market. This time, the situation of Chinese enterprises "penetrating" the NCM battery field in the local South Korean market has become increasingly severe. The battery industry, as a typical large-scale manufacturing "economies of scale" advantage is very obvious. The more NCM batteries made in China are used, the more capable Chinese battery companies will be to further reduce prices. Professor Park Cheol-wan from the Intelligent Vehicle Department at Sejong University pointed out, "Even South Korean automakers are increasing the use of Chinese batteries," "In the face of quality and price competitiveness, the nationality of the product no longer matters." Source: JoongAng Ilbo Original article: https://www.toutiao.com/article/1834918548315136/ Disclaimer: This article represents the author's personal views.