South Korea has dominated the global EV battery market after China. The three Korean battery producers have contributed to the global market with around 32% EV battery production. The growing demand in the past eight months of EV batteries in the international market has surged in the year where Korea is seen striking while the iron is hot!
Presently, Korea’s LG Energy Solution controls 21.5%, Samsung SDI 5.4%, and SK Innovation 5.1% production in the global market. The trio had contributed 35% in the previous year, which has reduced to 32% in 2021.
China’s CATL has majorly controlled the EV market with around a 30% market share. However, we may see the tables turn due to the growing demand for EV batteries and increasing Korean investment projects.
Rivian, powered by Samsung SDI batteries, newly launched an electric pickup truck. The launch is big news as it’s the first electric backup truck in the world. Similarly, Lucid Motors, another company using South Korean batteries, has set a new record in setting up the EV driving range. Such events have encouraged increased EV battery market share of South Korean companies.
South Korea has been endeavoring to push its global market share for EV battery production. The country has invested in institutes dedicated to students learning EV battery manufacturing skills to dominate the market with Korean producers and experts.
A couple of months ago, LG Energy Solution (LGES) shared its plans to set up the world’s first institute of battery technology. The company presently has a plant in Ochang where it plans to establish the institute.
LG Energy Solution is a leading South Korean EV battery producer that has partnered with global automakers such as Tesla, Volkswagen, Ford, and several other market players. It ranks second in the world for its market contribution, following CATL from China.
Japan and China fight for third place closely, with Panasonic at 11.1% and BYD at 10%, respectively. It is followed by SK Innovation securing 5th position in the market for its 5.5% contribution in the global sphere.
Although South Korea has invested in EV Battery production plants, China and Japan are not behind either. SNE Research addressed the subject in its latest report. “Korean battery makers have been doing well despite rising pressure from Chinese manufacturers, but they are expected to face a greater challenge from Chinese rivals that have been aggressively increasing their market share,” the report stated.
The EV market is on a steep rise globally. The increasing demand for batteries will have sharp competition, likely to intensify among Asian battery producers that presently control the global market.