Despite 40.2% Growth in Global Battery Usage, Korean Battery Market Share Declines

Market Share of Three Major Korean Battery Companies Drops by 4.6 Percentage Points

While global battery usage for electric vehicles has continued to grow steadily, Chinese battery manufacturers have expanded their market share. In contrast, the market share of the three major Korean battery companies (LG Energy Solution, Samsung SDI, and SK On) has slightly declined due to competition from Chinese firms.

According to energy market research firm SNE Research on June 4, the total battery usage installed in pure electric vehicles (EVs), plug-in hybrid vehicles (PHEVs), and hybrid vehicles (HEVs) registered worldwide from January to April this year reached 308.5 gigawatt-hours (GWh), marking a 40.2% increase compared to the same period last year.

During the same period, the combined global market share of LG Energy Solution, SK On, and Samsung SDI for electric vehicle battery usage stood at 17.9%, down by 4.6 percentage points from the same period last year.

LG Energy Solution maintained third place with 31.4 GWh, up 16.3% year-on-year, while SK On held fourth place with 13.4 GWh, up 24.1% year-on-year.

On the other hand, Samsung SDI remained in seventh place with 10.3 GWh, a decrease of 11.2%. SNE Research analyzed that the decline for Samsung SDI was primarily due to reduced battery demand from major automaker clients in the European and North American markets.

The growth of Chinese companies remained robust. Contemporary Amperex Technology Limited (CATL) solidified its global number one position with 117.6 GWh, a 42.4% increase from the previous year. CATL's market share was 38.1%. BYD also maintained second place with 53.4 GWh, up 60.8%, and a market share of 17.3%.

Japan's Panasonic, which mainly supplies batteries to Tesla, remained in eighth place with 9.4 GWh, a decrease of 8.7%.

SNE Research stated, "Policy changes in the United States present both opportunities and threats to Korean battery companies seeking to enter and expand their presence in the North American market. As a result, domestic companies are seeking to secure stable supply chains by establishing joint ventures and expanding battery production lines in the United States. In the mid- to long-term, they need to strengthen their global competitiveness by diversifying material sourcing and driving technological innovation."

The firm added, "At the same time, it is necessary to develop market-specific global strategies and promote sustainable growth through localization and enhanced cooperation, in response to the strengthening of carbon neutrality policies in Europe and intensifying price competition in China."