South Korean battery makers are rapidly increasing their market shares as Chinese battery makers are faltering due to the spread of the new coronavirus. In particular, SK Innovation has increased its share of the global electric vehicle battery market to 4.4 percent based on its bold investments. Its growth rate is one of the highest among major global companies.
The usage of SK Innovation's batteries in the first two months of this year reached 577.7 MWh, up 161.9 percent from the same period in 2019, said battery market researcher SNE on April 1. Its market share also grew from 1.7 percent to 4.4 percent from the January-February period of 2019. In February alone, its battery usage reached 342 MWh, up 174.1 percent from a year ago. Its market share hit 5.9 percent, the sixth largest in the world. It jumped by three notches from a year ago.
The main reason for SK Innovation's remarkable growth rate is aggressive investment made for many years. The company has established a virtuous cycle of taking orders with technological excellence, building factories, expanding production capacity, and scaling up its market share.
In particular, it completed expansion of its Seosan plant in 2019, boosting its production capacity from 1.7 GWh to 4.7 GWh.
In addition, at the end of last year, SK Innovation completed a 7.5 GWh battery factory in China and Hungary, respectively, so its production capacity has soared to 19.7 GWh. The company plans to start operating these factories in the first half of 2020. "As we have finished ramping up our production capacity, we will be able to make a leap to the top 5 by the end of 2020," an SK Innovation official said.