Korean Media: South Korea's Battery Market Share Falls Below 30% Outside China!

On July 6, Korean media outlet Business Korea published an article stating that as Chinese battery manufacturers rapidly expand their influence in the global electric vehicle (EV) market outside China, the combined market share of South Korea's three major battery companies has dropped below 30%.

Data released by market research firm SNE Research shows that from January to April this year, EV battery demand outside China reached 162.7 GWh, a 21.0% increase compared to the same period last year.

Meanwhile, the combined market share of South Korea’s three domestic firms—LG Energy Solution, SK On, and Samsung SDI—was 28.7%, down 8.5 percentage points from the previous year. Unable to keep pace with the overall market growth, the gap between them and Chinese competitors appears to be widening further.

The most significant shift lies in the rapid rise of Chinese enterprises. CATL’s battery usage reached 54.9 GWh, up 36.0% year-on-year, increasing its market share to 33.8%. BYD’s battery usage also reached 16.9 GWh, up 71.5% year-on-year, with its market share rising to 10.4%. Together, the two companies hold a combined market share of 44.2%, capturing nearly half of the non-Chinese market.

Specifically, CATL is expanding its influence in Europe and Asia by increasing supply to global automakers such as Tesla, BMW, Mercedes-Benz, Toyota, and Kia. BYD is also accelerating its expansion into markets outside China, boosting overseas EV sales and growing its battery business.

South Korean companies are facing challenges due to weak customer demand and shifting market dynamics. LG Energy Solution maintained second place in the non-China market with 27.4 GWh of battery usage, but its market share declined to 16.8%. Although the company continues supplying Tesla, General Motors, Hyundai Motor Group, and Volkswagen, its growth rate has failed to match that of Chinese rivals.

SK On successfully secured clients including Hyundai Motor Group, Ford, Volkswagen, and Mercedes-Benz. However, due to adjustments in North American EV demand, its battery usage fell to 12.3 GWh, down 7.8% year-on-year, and its market share dropped to 7.6%.

Samsung SDI primarily supplies BMW, Audi, and Rivian. However, due to slowing EV sales, its battery usage declined by 28.6% to 7.0 GWh, and its market share fell to 4.3%.

Industry experts believe these figures not only reflect competition over market share but also signal a transformation in leadership within the battery sector. Analysts point out that the divergence in growth rates stems from Chinese companies aggressively entering global automotive supply chains through highly price-competitive lithium iron phosphate (LFP) batteries, while South Korean firms continue to focus on premium market strategies.

Experts emphasize that maintaining price competitiveness outside China, expanding LFP battery product lines, and establishing local production bases will be key factors determining future global battery company market positions.

Original source: toutiao.com/article/1869949034535936/

Disclaimer: The views expressed in this article are those of the author(s).