Exclusive: China's CATL to commence operations in Korea in Q2, eyes ties with Hyundai

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Exclusive: China's CATL to commence operations in Korea in Q2, eyes ties with Hyundai

Published: 24 Apr. 2025, 06:00 Updated: 24 Apr. 2025, 08:27

SARAH CHEA
[email protected]

Audio report: written by reporters, read by AI

Ni Zheng, executive president of overseas business at Contemporary Amperex Technology Limited. [CATL]

China's Contemporary Amperex Technology Limited (CATL) is set to start operation of its Korean subsidiary in the second quarter of this year as the world's largest battery maker seeks to penetrate the Korean arena with its low-cost and fast-charging lithium iron phosphate (LFP) batteries.

CATL’s arrival in Korea heralds closer ties with domestic automakers like Hyundai Motor and Kia, according to Ni Zheng, overseas executive president of CATL, as well as its intention to make Korea a launchpad for global growth against the backdrop of escalating trade tension between the United States and China.

[단독] CATL 사장 “2분기 한국 법인 출범…현대차와 협력하고 싶다”

“The preparation for establishing the subsidiary is already underway, and we aim to complete it as early as the second quarter of 2025,” said Zheng in an exclusive email interview with the Korea JoongAng Daily.

“We plan to explore not only the existing battery-powered EV market, but also opportunities in the commercial vehicle sector and various collaborative models and projects.”

The Ningde, China-based CATL is rapidly eroding the global market share of Korean battery makers, backed by its dominance in LFP batteries. In 2020, CATL held 24.6 percent of the global EV market, which jumped to 37.9 percent in 2024 — maintaining its firm grip on the top spot.

During the same period, LG Energy Solution’s share dipped from 23.4 percent to 10.8 percent, SK On's from 5.5 percent to 4.4 percent, and Samsung SDI's from 5.8 percent to 3.3 percent, according to data from SNE Research.

On Korean roads, its presence is increasingly impactful. As of the end of October, Korea had a total of 598,650 registered EVs, and 91,028 of them, or 15.21 percent, were topped with CATL batteries. That’s a larger proportion than Samsung SDI, which accounts for 2.7 percent of the domestic market, according to data from the Ministry of Land, Infrastructure and Transport.

Hyundai and Kia currently use CATL batteries in Kona, Ray and Niro EVs.

The following are excerpts from the interview with Zheng, edited for length and clarity.

Contemporary Amperex Technology Limited's lithium iron phosphate batteries are displayed at an exhibition in Beijing on Oct. 12, 2022. [REUTERS/YONHAP]

Could you give us an update on CATL’s progress in establishing its legal entity in Korea and the Korean subsidiary’s major role?

We are in the process of completing paperwork for establishing a Korean subsidiary, and we aim to complete it as early as the second quarter of 2025. The Korean office will focus on better responding to the needs of our customers in Korea. We follow an “in local, for local” strategy in our operations across the globe, and therefore, we will primarily hire local staff in Korea while sending a small number of employees from China to support local operations. Following the establishment of our subsidiary in Korea, we plan to explore not only the existing battery-powered EV market, but also opportunities in the commercial vehicle sector and various collaborative models and projects.

Upon establishing the legal entity in Korea, do you foresee any opportunities for cooperation with major Korean EV makers, including Hyundai and Kia?

We look forward to them. CATL provides world-leading new energy products for electric passenger and commercial vehicles as well as energy storage systems, which have been successfully powering e-mobility and energy transitions across the world, including in Korea. We are committed to expanding cooperation with companies in the above-mentioned fields in Korea with our advanced technologies, solutions and reliable services to support Korea’s carbon neutrality efforts.

U.S. President Donald Trump has been heightening trade conflict, specifically targeting China with tariffs of up to 245 percent. How does CATL intend to navigate this evolving tussle?

Trade barriers will inevitably reduce our customers' access to our products. We believe that Korean customers will continue to enjoy access to CATL’s high-quality and cost-effective products, contributing to global efforts toward the energy transition.

The climate challenge is a global issue. Above all, CATL, as a company, is dedicated to solving global climate challenges, and we believe open innovation and cooperation are the most effective way to tackle the issue.

Contemporary Amperex Technology Limited's booth at the 22nd Guangzhou International Automobile Exhibition at the China Import and Export Fair Complex in Guangzhou, China, on Nov. 15, 2024. [XINHUA/YONHAP]

Korean battery manufacturers are significantly accelerating their efforts in the development of LFP batteries. How do you perceive this strategic shift, and what implications might it have for the broader industry?

Our Korean peers have made significant achievements in the development of LFP battery technology over the past years, which we respect very much. As a global leader of new energy innovative technologies, CATL is committed to providing premier solutions and services for new energy applications worldwide. We will work together with stakeholders across the new energy industry to drive the advancement of e-mobility and energy transitions.

Concerns over EV fires are still looming among Korean consumers after a massive Mercedes-Benz EV explosion last year. Do you have anything to say to reassure Korean customers?

Battery safety is systematic engineering that spans the entire life cycle of a battery. CATL has always regarded safety as its lifeline, and safety is the primary consideration in product development. We focus on the overall safety of batteries, aiming to enhance their safety performance in a wide range of application scenarios throughout the entire life cycle.

CATL’s NP [No Propagation] technology effectively prevents thermal propagation to adjacent cells during a single cell thermal runaway. The battery system can be stabilized and discharged to a safe state by adopting CATL’s NP 2.0 technology, which is the first high-voltage and smoke active isolation technology. Our goal in developing NP technology is to ensure that vehicle operation will not be affected even in the event of a thermal runaway in battery cells.

In addition, compared to batteries for consumer electronics, an EV battery pack usually contains over 100 battery cells, which imposes strict quality control requirements during large-scale battery production. CATL has developed an extreme manufacturing system with the goal of improving the cell defect rate from ppm [parts per million] level to ppb [parts per billion] level.

A driver gets his car battery swapped at a first-generation Contemporary Amperex Technology Limited station in Xiamen, China, on Dec. 18, 2024. [AP/YONHAP]

The EV market is growing — but at a sharply reduced rate, and a grim road lies ahead with Trump’s hostility toward EVs and climate policies. What’s your survival plan?

Since our establishment, CATL has set goals to achieve fossil fuel replacement in stationary and mobile energy systems with highly efficient electrical power systems that are composed of advanced batteries and renewable energy, as well as promote the integrated innovation of market applications through electrification and intelligentization.

Innovation is the key driver of CATL’s continuous strong growth. We have established a four-pronged innovation system, namely the material and electrochemistry system, structure system, green extreme manufacturing and business model.

CATL has set up R&D [research and development] centers in Ningde, Liyang, Shanghai, Xiamen, Hong Kong and Munich, with over 20,000 staff members engaged in R&D so far. In 2024, CATL invested about 18.6 billion yuan [$2.59 billion] in R&D, and its issued and pending patents had reached 43,354 worldwide as of the end of December 2024.

This significant investment has led to breakthroughs like Shenxing PLUS, the world's first LFP battery that achieves a range above 1,000 kilometers [621 miles] with 4C superfast charging, and the Freevoy Super Hybrid Battery, the world's first hybrid vehicle battery to achieve a pure electric range of over 400 kilometers and 4C superfast charging.

We are confident in maintaining our sustainable growth through continuous technological innovation and farsighted strategic planning, constantly providing better quality and cost-effective products.

BY SARAH CHEA [[email protected]]