Korean EV battery makers lose footing as Chinese competitors grow rapidly

LG Energy Solution workers hold up the company's cylindrical batteries at the Ochang plant in North Chungcheong. [LG ENERGY SOLUTION]

Korean electric vehicle (EV) battery makers are losing their share in the global market as Chinese competitors grow at a rapid pace.

Three Korean battery makers — LG Energy Solution, SK On and Samsung SDI — had a combined share of 25.2 percent in the January-to-September period, down from the 32.5 percent recorded last year, according to data from SNE Research.

LG Energy Solution came in at No. 2 with 14.1 percent, down from 21.6 percent last year. SK On was in fifth place with 6.2 percent, followed by Samsung SDI in sixth with 4.9 percent.

That expands Korean battery makers' gap with China's Contemporary Amperex Technology (CATL) which came in first with 35.2 percent. CATL is the world’s largest battery maker. In 2019, CATL had just 27.6 percent.

Shenzhen's BYD has also been growing quickly, BYD had a 12.8 percent share during the same period this year, coming in at third, compared to 8.1 percent a year earlier.

China Aviation Lithium Battery (CALB) held 4 percent at seventh place, narrowing its gap with Samsung SDI.

SNE's top-10 list for the first nine months of 2022 rounds out with one Japanese company, Panasonic, placing at No. 4 with 8.1 percent of the market.

Overall, the market has been growing rapidly, Supply of EV batteries was up by 75.2 percent on year to 341.3 gigawatt-hours.

LG Energy Solution supplied 48.1 gigawatt-hours, up 14.1 percent; SK On 21.2 gigawatt-hours, up 92 percent; and Samsung SDI 16.6 gigawatt-hours, up 65.1 percent.

"LG Energy Solution continued to keep growth in the double-digits thanks to the high popularity of Model 3 and Model Y by Tesla as well as strong sales of Volkswagen ID.4 and Ford Mustang Mach-E," SNE Research wrote in a release.

Samsung SDI's batteries are installed in Audi's e-tron and the BMW iX and i4. SK On’s batteries are used in Hyundai Ioniq 5s and Kia’s EV6s.

During the period, CATL's supply jumped 100.3 percent to 119.8 gigawatt-hours, while BYD surged 177 percent to 43.6 gigawatt-hours.

The other four Chinese battery makers on the top 10 list also saw a triple-digit increase in their supply compared to 2021. The supply of Shenzhen-based Sunwoda Electronic, in particular, skyrocketed 414.2 percent.

BY SARAH CHEA [chea.sarah@joongang.co.kr]