But Market Share Shrinks
Electric vehicle (EV) battery exports by the three major Korean producers -- LG Energy Solution, SK On and Samsung SDI -- jumped by 52 percent in the first three quarters of this year compared to a year ago. But their global share has decreased due to the rise of Chinese companies.
The Korean battery trio’s cumulative battery exports totaled 27,179.8 billion won in the first three quarters of this year. The figure represented a 52.1 percent surge from the 17,860.6 billion won in the same period of 2021. By company, LG Energy Solution logged 10,966.7 billion won in battery exports, followed by Samsung SDI with 10,851.4 billion won and SK On with 5,331.7 billion won.
SK On's steep growth is notable. The company’s battery export value rose by 208.9 percent in one year, far higher than Samsung SDI's 60.2 percent and LG Energy Solution's 17.4 percent.
The export surge was due to the effect of preemptive overseas investment, which has been carried out since 2016, analysts say. Samsung SDI and LG Energy Solution have built battery cell factories in Europe since 2016. SK Innovation also finalized the site of its first overseas battery production base in Komarom, northern Hungary, at the end of 2017.
In addition, experts estimate that the three major Korean battery companies will invest 40 trillion won in the United States alone by 2025.
However, despite their increased exports, their global battery market share slid. According to SNE Research, as of October this year, their global battery market share stood at 24.8 percent, down 6.9 percentage points from the same period of 2021. On the other hand, Chinese companies significantly increased their market share due to the growth of the Chinese electric vehicle market. CATL, a Chinese battery maker, enjoyed a 35.3 percent share of the global battery market.
Industry insiders predict that the three major Korean battery companies will ramp up both their global market share and exports when the U.S. Inflation Reduction Act (IRA) is implemented in earnest.