South Korea’s three battery giants, LG Energy Solution (LGES), SK on, and Samsung SDI, are facing a challenging landscape in the global market as Chinese battery companies intensify their efforts to expand into Europe and North America.

The trio’s market share dropped below 25 percent as their Chinese competitors grow rapidly.

While the Korean companies successfully increased their sales volumes compared to the previous year, Chinese companies, including CATL, have been growing at an even faster pace.

According to market tracker SNE Research, LGES, SK on, and Samsung SDI held a combined market share of 23.5 percent in the EV battery market in the first seven months of 2023. LGES had a 14.2 percent market share, followed by SK on with 5.2 percent and Samsung SDI with 4.1 percent.

CATL has emerged as the global leader in the sector, dominating the market with a 36.6 percent market share in the same period and shipping 132.9 GWh of batteries. CATL supplies batteries to a wide range of brands rolled out in China, including Tesla’s Model 3 and Model Y. Second-ranked battery maker BYD is expanding its own electric vehicle sales.

LGES primarily supplies batteries for Tesla’s Model 3 and Model Y, as well as the Volkswagen ID.4 and Ford Mustang Mach-E. SK on provides batteries for Hyundai-Kia’s Ioniq 5 and EV6, as well as the Ford F-150. Samsung SDI’s main battery customers include BMW’s iX and the Rivian vehicles.

Among the Korean companies, LGES has been quick to expand its production capacity in North America, leading to an increase in its market share from 13.8 percent in the first seven months of last year to 14.2 percent in the same period this year. But SK on saw its market share decline from 6.7 percent to 5.2 percent, and Samsung SDI from 4.7 percent to 4.1 percent during the same period.

By Song Min-geun and Minu Kim

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]