South Korean media: South Korean batteries lose out to China in competition, market share falls below 20%! On June 6, South Korean media "The Korea Herald" published an article stating that the position of South Korean batteries in the global electric vehicle battery market is shrinking. South Korean battery companies are on a downward trend, while Chinese companies are on the rise, and the market landscape is being restructured. According to SNE Research statistics, the combined global market share of three South Korean battery companies, LG Energy Solution, Samsung SDI, and SK On, in the first quarter of this year was 18.7%, down 3.0 percentage points year-on-year. LG Energy Solution ranked third with a share of 10.7%, down from 12.9% last year, with a supply volume of 23.8 GWh. SK On's supply volume was 10.5 GWh, with a market share of 4.7% (ranked fourth), and Samsung SDI's supply volume was 7.3 GWh, with a market share of 3.3% (ranked seventh). On the other hand, CATL and BYD of China led the market with a total share of 55.0%. In the first quarter, CATL supplied 84.9 GWh of batteries, ranking first with a 38.3% share, while BYD supplied 37.0 GWh, ranking second with a 16.7% share. Notably, Chinese companies also lead in growth. CATL's battery supply increased by 40.2% year-on-year, BYD grew by 62.0%, while LG Energy Solution only grew by 15.1%. In markets excluding China, the combined market share of the three South Korean companies was 40.3%, down 5.4 percentage points year-on-year. Meanwhile, the combined market share of CATL and BYD in China rose by 4.5 percentage points year-on-year, reaching 36%. Behind the thriving development of Chinese enterprises is the rapid popularization of lithium iron phosphate (LFP) batteries. LFP batteries do not use expensive metals such as nickel and cobalt, offering high cost-effectiveness, thus gaining higher adoption rates. Due to recent technological advancements, energy density has improved, narrowing the performance gap with existing ternary batteries, and prices have dropped by more than 20%. Last year, LFP batteries accounted for 60% of the global battery market, and it is expected that their market share will increase to 63% this year. Experts suggest that South Korean battery companies need to formulate strategies that play to their strengths and mitigate weaknesses to maintain their share in the global battery market and further enhance competitiveness, especially in the US market. Hwang Kyeong-in, a deputy researcher at the Korea Institute for Industrial Economics & Trade, stated, "The most obvious decline in South Korean companies' market share is in the EU. As major EU countries reduce or eliminate subsidies for electric vehicles, EV prices are rising, while low-priced EVs equipped with Chinese batteries are becoming increasingly popular, causing a decline in South Korean companies' battery share. However, since South Korean companies have a competitive advantage in the US market, the most important factor is maintaining the current advantage gained in the US market." [Image source: //p3-sign.toutiaoimg.com/tos-cn-i-ezhpy3drpa/7dc949f19e65484db431f85b0ecb96df~tplv-obj:5376:3584.image?_iz=97245&bid=15&from=post&gid=1834181030221898&lk3s=06827d14&x-expires=1756944000&x-signature=%2BaeFERno7%2F0nL3Nz9pWrBarSpyA%3D] Original article: https://www.toutiao.com/article/1834181030221898/ Disclaimer: The article solely represents the author's personal views.