According to media reports, LG Energy Solution (LGES) is making a concerted effort to develop square batteries. In addition to LGES, other South Korean battery suppliers have also noticed a significant increase in demand from automakers for square batteries.
LGES has established a dedicated team to develop square batteries and is actively introducing its new products to customers. Once the company begins production, LGES will become the first South Korean battery supplier capable of offering square, cylindrical, and pouch batteries simultaneously.
Other South Korean battery suppliers, Samsung SDI and SK On, are also ramping up efforts to produce square batteries. SK On has already developed square battery technology and is actively discussing production plans with customers while preparing for large-scale manufacturing.
Samsung SDI has long been the only supplier of square batteries in South Korea, giving it a competitive edge over LGES and SK On. With the changing demands in the electric vehicle (EV) market, Samsung SDI is preparing for the increasing demand for square batteries. Michael Son, Executive Vice President of Samsung SDI, stated, "As the demand for collaboration with EV manufacturers continues to grow, the market share of square batteries in the global EV market will gradually expand."
As automakers delve deeper into EV production, their research and considerations on battery technology have also increased. Over the past few years, square batteries have garnered more and more attention.
In 2019, square batteries held only a 19% market share in Europe, with pouch batteries dominating the market with a 46% share. However, by the end of 2023, square batteries accounted for 49% of the European battery market, surpassing pouch batteries, which held a 35% market share.
Meanwhile, according to SNE Research, cylindrical batteries held a 35% market share in Europe in 2019 but declined to 16% by 2023. Nevertheless, cylindrical batteries may regain attention in the coming years.
Currently, LGES and Samsung SDI are about to commence mass production of Tesla's 4680 battery. Samsung SDI plans to begin mass production of the 46-series cylindrical battery in early 2025. LGES plans to start production of the 4680 cylindrical battery in Korea this month, with mass production expected by the end of this year.
