In the global electric vehicle (EV) market, the market share of South Korean battery manufacturers has fallen below 50%. China’s CATL, previously dominant only in the domestic market, is now matching LG Energy Solution in the global market outside China, enhancing its presence significantly.
According to SNE Research on Jan. 11, the total usage of EV batteries sold from January to November last year in markets excluding China was approximately 282.9 gigawatt-hours (GWh), a 48.8% increase compared to the same period the previous year.
Although the market share of South Korea’s top three battery companies showed overall growth, it fell by 5.4 percentage points to 48.5% compared to the same period the previous year.
LG Energy Solution maintained its lead with 41.7% growth (78.5 GWh) compared to the previous year. SK on recorded a growth of 13.7% (30.7 GWh), and Samsung SDI 39.8% (28.1 GWh), placing them fourth and fifth, respectively.
CATL exhibited a growth rate more than double that of LG Energy Solution, at 86.5% (78.4 GWh). With its continued rapid growth, CATL has expanded its market share quickly, becoming joint leaders with LG Energy Solution by the end of last year.
CATL, along with other Chinese companies, is showing higher growth rates in non-Chinese markets than in the domestic Chinese market, rapidly expanding its global market share.
CATL’s batteries are being used in major OEM vehicles including the Tesla Model 3 and Y (exported from China to Europe, North America, and Asia), BMW, MG, Mercedes-Benz, and Volvo. Recently, Hyundai’s new Kona and Kia Ray electric models also feature CATL batteries, indicating the growing influence of Chinese companies in the South Korean market as well.
With the strengthening of the subsidy regulation under the U.S. Inflation Reduction Act (IRA) this year, the number of eligible vehicles has been reduced from 43 to 19 models. This reduction is believed to have affected models with Chinese parts and materials, with further tightening expected.
SNE Research commented, “While the vehicles eligible for subsidies primarily use batteries from the three major South Korean manufacturers, currently South Korea has a very high dependence on China for key battery materials like precursors and minerals. The government and domestic battery and cathode material companies are expected to unify their efforts in diversifying supply chains to solidify their position in non-Chinese markets.”