Global leading automakers are asked the sales division of domestic electric vehicle (EV) battery producers to visit them two to three times a month on average. They even visit South Korea to have meetings with South Korean EV companies. Until now, employees of the purchasing and development department at Porsche, BMW, Daimler AG, Tesla and Volkswagen visited South Korea from last year.
According to industry sources on August 29, the value of domestic EV battery producers is increasing due to the release of the Tesla Model 3, Europe’s plan to ban the sale of petrol and diesel cars and China’s new energy vehicle policy that requires automakers to meet eco-friendly vehicle production quotas. In particular, pouch type EV batteries developed by LG Chem and SK Innovation have a high growth potential.
It is shown in the sales of the GM Bolt equipped with LG Chem’s pouch type EV battery. The GM Bolt sold 1,917 cars in the U.S. market last month, ranking first with a 12.6 percent market share. It is the only car that can run 400 kilometers on a full battery charge. Industry sources say that the battery played a crucial role in improving performance.
The pouch type batteries have a higher unit price than cylindrical and rectangular batteries. However, it is easy to process due to flexibility and is lightweight. According to a survey conducted by SNE Research, the pouch type batteries see their share rapidly grow in the market. The shipment of the batteries recorded at 3.7 GWh in the first half of this year, increasing the market share to 25.2 percent. The shipment in the first half of last year stood at 2.4 GWh with a 18.9 percent market share.
An official from the EV battery industry said, “Chevrolet, Renault and BAIC now release more models using the pouch type batteries. Global automakers based in South Korea are using cylindrical and rectangular batteries but they are considering the launch of models featured with the pouch type batteries.” Tesla is currently using only cylindrical batteries but they are not enough to meet production. So, the company has been thinking about using pouch type or rectangular batteries and contacting domestic battery manufacturers.”