Korean Media: China's Battery Industry Rises Strongly, While South Korea Faces "Negative Growth" Crisis!

On April 5, Korean media outlet Chosun Ilbo published an article stating that despite the expansion of the global electric vehicle (EV) market, three major South Korean battery companies experienced negative growth and declining market share.

Data from market research firm SNE Research shows that in January 2026, the total battery capacity installed in EVs worldwide reached 71.9 GWh, representing a 10.7% year-on-year increase. Analysis indicates that although the pace of EV sales growth has slowed, battery demand continues to rise due to the increasing average battery capacity per vehicle.

However, South Korean battery companies have performed poorly. The combined global market share of South Korea’s three top battery firms—LG Energy Solution, SK On, and Samsung SDI—stood at just 12.0%, down 4.3 percentage points year-on-year.

Looking at individual companies: LG Energy Solution recorded 4.7 GWh, a 14.9% decline; SK On recorded 2.3 GWh, down 21.3%; Samsung SDI reported 1.6 GWh, dropping 24.4%. All three companies saw simultaneous negative growth.

Analysts attribute this mainly to the downturn in the U.S. EV market. In January this year, U.S. EV sales declined by 30.2% year-on-year—the largest drop among all global markets.

Meanwhile, Chinese companies showed clear signs of strong growth. Contemporary Amperex Technology Co. Limited (CATL), the world’s leading battery manufacturer, achieved a record 32.5 GWh, up 25.7% year-on-year. By continuously expanding its supply scale to multiple global automakers, CATL has steadily increased its market share.

BYD recorded 9.9 GWh, a slight 1.9% decrease year-on-year, yet still maintained its position as the second-largest globally. Despite slower growth in China’s domestic market, strong sales increases in Europe and emerging markets have significantly expanded its influence.

Panasonic ranked fifth with 3.1 GWh, achieving year-on-year growth. According to analysis, to reduce dependence on Tesla, the company is actively building a diversified supply chain through improving production efficiency in North America and developing new types of batteries.

The market structure is also showing signs of change. As of January 2026, global EV sales declined by 2.1%, but battery usage rose by 10.7%. This is because rising average battery capacities and the growing popularity of long-range EV models are driving battery demand faster than EV sales themselves.

Regionally, policy shifts are influencing market trends. In the United States, uncertainty surrounding policies has led to a slowdown in EV demand. In China, the narrowing of purchase tax incentives has similarly tempered growth momentum. Conversely, stronger carbon regulations and increased inflows of Chinese EVs have helped sustain relatively robust demand in Europe.

The industry believes future competition in the EV battery market will shift from simple price battles toward a focus on securing supply chain stability, regulatory compliance, and product performance. Especially amid growing regional policies and trade restrictions, local manufacturing and supply chain strategies will determine each battery company’s competitiveness going forward.

Original source: toutiao.com/article/1861594104089737/

Disclaimer: The views expressed in this article are solely those of the author.