The market share gap between China and South Korea in the global electric vehicle (EV) battery market is gradually widening. The stagnation in growth of the U.S. and European markets, which are the main stages for Korean battery companies, is cited as the primary reason, while the absence of affordable lithium iron phosphate (LFP) batteries also appears to have a significant impact. The three domestic battery companies are now facing the challenge of enduring a harsh period without LFP batteries.
According to market research firm SNE Research on the 7th, the total battery capacity installed in electric vehicles (including battery electric vehicles, plug-in hybrid vehicles, and hybrid vehicles) registered worldwide from January to August this year reached 510.1 gigawatt-hours (GWh), marking a 21.7% increase compared to the same period last year.
LG Energy Solution, SK On, and Samsung SDI recorded growth rates of 2.5%, 8.0%, and 9.2%, respectively. From January to August this year, the combined battery installation volume of the three domestic battery companies in electric vehicles was 107.5 GWh, showing approximately 5% growth compared to the same period last year. In contrast, China's CATL grew by 27.2%, BYD by 25.6%, and CALB also recorded a growth rate of 24.5% during the same period.
Accordingly, the market share gap is also widening. CATL's market share rose by 1.6 percentage points from 35.5% in the same period last year to 37.1%, further solidifying its position as number one. BYD maintained its second place with a market share increase from 15.9% to 16.4%. CALB's market share rose slightly from 4.7% to 4.8%, tying with SK On for fourth place.
LG Energy Solution held onto third place, but its market share dropped by 2.3 percentage points from 14.4% to 12.1%. Samsung SDI's market share decreased from 4.7% to 4.2%. The combined market share of the three domestic battery companies fell by 3.4 percentage points to 21.1%.
The growth of Chinese battery companies is attributed not only to a solid domestic market but also to global automakers increasingly adopting Chinese batteries.
SNE Research explained, "CATL's batteries are adopted in the world's largest EV market, China, and major global automakers such as Tesla Model 3/Model Y, BMW iX, Mercedes EQ series, and Volkswagen ID series also use CATL batteries." It added, "As the number of EV models equipped with LFP batteries increases worldwide, Chinese battery companies are making significant advances." The explanation includes that due to reductions in EV subsidies and concerns about EV safety, the number of LFP models, which have advantages in thermal stability and price competitiveness, is increasing even outside China.
SNE Research forecasts that since Chinese companies have secured the initial market for LFP batteries, they will maintain a near-monopoly market share in this sector for the time being. Although domestic battery companies are also responding to LFP batteries one after another, it is expected to take time. LG Energy Solution has signed a pouch-type cell-to-pack (CTP) supply contract with Renault, and Samsung SDI and SK On are preparing for LFP battery mass production. Accordingly, domestic battery companies are expected to supply LFP batteries for electric vehicles starting around 2026.
SNE Research stated, "As the growth of the EV market slows, demand for batteries with price competitiveness is increasing, and with growing social demands for battery safety following recent EV fires, attention is focused on future changes in the LFP battery market landscape."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
