Global Battery Usage Up 38.5% from January to May... Korean Battery Makers' Market Share Down

Chinese Companies Led by CATL Continue to Grow
LG Energy Solution's Market Share Up 14.3% Year-on-Year

This year, while the total battery usage in the global electric vehicle battery market increased by nearly 40% compared to the same period last year, the combined market share of the three major Korean battery companies fell to the 17% range. Analysts attribute this to the aggressive expansion of Chinese companies, which are leading with low-cost lithium iron phosphate (LFP) batteries, as well as a slowdown in demand from major customers in North America and Europe.

According to SNE Research, an energy market research firm, the total battery usage in battery electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs) registered worldwide from January to May this year reached 401.3 gigawatt-hours (GWh), marking a 38.5% increase compared to the same period last year.

During the same period, the combined global market share of the three Korean battery makers?LG Energy Solution, SK On, and Samsung SDI?for electric vehicle batteries was recorded at 17.4%, a decline of 4.5 percentage points.

LG Energy Solution maintained its third-place ranking with battery usage of 39.9GWh, up 14.3% year-on-year, and a market share of 12.1%. SK On supplied 16.8GWh, an 18.1% increase, securing fifth place with a 4.9% market share.

In contrast, Samsung SDI saw its usage drop by 12.9% to 13.1GWh, with its market share declining from 4.9% to 3.3%. SNE Research stated, "The main reason is the decrease in battery demand from major automaker customers in the European and North American markets."

Chinese companies leading with low-cost lithium iron phosphate (LFP) batteries continued to show strong growth. Contemporary Amperex Technology (CATL) maintained its dominant global lead with 152.7GWh, a 40.6% increase year-on-year, and a 38.1% market share.

BYD also grew by 57.1% to reach 70GWh, maintaining its position with a 15.4% market share. In addition, a total of six Chinese companies?including CALB (4th), Gotion (6th), EVE (9th), and SVOLT (10th)?ranked within the top ten in market share.

Japan's Panasonic, which mainly supplies batteries to Tesla, remained in eighth place with 11.7GWh, a 12.9% decrease.

An SNE Research official stated, "Korean secondary battery companies need to develop defensive strategies against North American policy risks and intensifying competition in Europe, while also reorganizing to secure a stable demand base in the mid- to long-term."