Focus on Enhancing Competitiveness
Due to intensified endeavors by Chinese battery manufacturers in Europe and North America, the market share of Korea’s big three battery companies has dropped below 25%.
Market research firm SNE Research reported on Sept. 5 that from January to July this year, the market share of LG Energy Solution, SK innovation, and Samsung SDI in the electric vehicle battery market was recorded at 23.5%. LG Energy Solution had a 14.2% share, while SK innovation and Samsung SDI recorded 5.2% and 4.1%, respectively.
Globally, CATL from China tops the electric vehicle battery market. Between January and July, CATL supplied batteries amounting to 132.9 GWh, securing a dominant 36.6% share. CATL provides batteries for the Tesla Model 3, Model Y, and various Chinese brands. In second place is BYD, which is increasing its electric car sales.
Key supply models for LG Energy Solution include the Tesla Model 3, Model Y, Volkswagen ID.4, and Ford Mustang Mach-E. SK innovation focuses on Hyundai Kia’s Ioniq 5, EV6, and Ford F-150, and Samsung SDI mainly supplies the BMW iX and Rivian.
Among the three Korean firms, LG Energy Solution, which rapidly expanded its North American production capacity, increased its market share from 13.8% in January-July last year to 14.2% in the same period this year. However, SK innovation decreased from 6.7% to 5.2%, and Samsung SDI went down from 4.7% to 4.1%.
With the aggressive strategy of Chinese battery manufacturers, Korean companies are also focusing on enhancing their competitiveness through next-generation products.