Prismatic, Pouch-shaped and Cylindrical Batteries in Competition
Market research firm SNE Research announced on April 4 that prismatic, pouch-shaped and cylindrical EV batteries accounted for 49.2 percent, 27.8 percent and 23 percent of the global EV battery usage last year, respectively.
In 2018, the ratios were 56.6 percent, 14.4 percent and 29 percent. At that time, the ratio of use of prismatic batteries increased based on the Chinese EV market’s growth. Then, LG Energy Solution and SK innovation, which produce pouch-shaped batteries, increased their supply to the United States and Europe to result in an increase in the use of pouch-shaped batteries.
According to industry experts, the three figures are likely to show some significant changes down the road. This is because automakers are expected to place bulk orders for the purpose of cost reduction and their preferences for certain types are likely to increase as they will come up with their own dedicated battery platforms.
The future trend can be both advantageous and disadvantageous for the three South Korean companies supplying EV batteries. Volkswagen recently announced that prismatic and non-prismatic batteries would account for 80 percent and 20 percent of its EV battery usage, respectively. The world’s largest automaker is expected to work more closely with Northvolt and CATL and this already led to a decrease in orders on the part of LG Energy Solution and SK innovation.
GM, in the meantime, is cooperating more with LG Energy Solution to concentrate on pouch-shaped batteries. BMW, which is focusing on prismatic batteries, is predicted to shift towards cylindrical batteries in the long term. Tesla has focused on cylindrical batteries from the beginning and each of the others is likely to choose one in the end.
At present, LG Energy Solution produces pouch-shaped and cylindrical batteries, Samsung SDI produces prismatic and cylindrical batteries, and SK innovation produces pouch-shaped batteries. Experts point out that SK innovation’s risk is higher in that the company produces only one type.