According to Yonhap News, industry data released on December 9 shows that the combined global market share of South Korea's three electric vehicle (EV) battery manufacturers fell in the first 10 months of this year compared to the same period last year due to the rapid growth of Chinese competitors.
Data from market research firm SNE Research indicates that from January to October this year, LG Energy Solution, SK On, and Samsung SDI held a combined 20.2% share of the global EV battery market, a decrease of 3.5 percentage points from the same period last year. In contrast, Chinese EV battery makers CATL and BYD captured a combined 53.6% share during the same period. In 2021, the South Korean companies held a 31.7% market share, while the two Chinese firms accounted for 39.7%.
SNE Research attributes the decline in South Korean battery makers' market share to the rapid expansion of Chinese companies. Amid a sluggish EV market, Chinese companies have focused on low-cost products, leading the EV battery market with prismatic batteries. Compared to other types of batteries, prismatic batteries offer better durability and higher energy density. From January to October this year, the global market share of prismatic batteries increased from 70.9% in 2023 to 78.3%.
Currently, Samsung SDI is the only South Korean company supplying prismatic batteries. To maintain competitiveness, LG Energy Solution announced last week its plans to collaborate with General Motors to develop prismatic batteries. SK On has completed its development of prismatic batteries and is negotiating with clients to determine the timeline for mass production.
Additionally, to compete with Chinese firms, South Korean battery makers are striving to produce lithium iron phosphate (LFP) batteries, which are in high demand due to their lower costs. Compared to nickel-cobalt-manganese (NCM) batteries, LFP batteries are cheaper and more sustainable. SNE Research stated that as LFP batteries gradually replace NCM batteries in the global market, Chinese battery makers have expanded their market share.
