Chinese battery maker CATL’s new 'salt battery' puts Korean manufacturers on alert

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Chinese battery maker CATL’s new 'salt battery' puts Korean manufacturers on alert

Published: 13 May. 2025, 07:00

Audio report: written by reporters, read by AI

Robin Zeng, the CEO of China-based CATL battery manufacturing company, speaks near the words reads ″swap battery″ at a launch event for the next generation of swap stations in Xiamen, Fujian province, China, on Dec. 18, 2024. [AP/YONHAP]

Korean battery makers are on edge following Chinese battery giant CATL’s unveiling of a new sodium-ion battery — dubbed the “salt battery” — which could reshape global competition in the fast-evolving EV battery market.

CATL showcased the sodium-ion battery last month at its “Tech Day,” held in Shanghai on April 21. The new battery replaces costly lithium with sodium to enhance price competitiveness. Its energy density is rated at 175 watt-hours (Wh) per kilogram, comparable to conventional lithium iron phosphate (LFP) batteries ranging from 165 to 180 Wh/kg.

CATL said the sodium-ion battery is also safer, less prone to fire risks and retains performance better in cold temperatures than LFP batteries.

Korea’s three leading battery manufacturers — LG Energy Solution, Samsung SDI and SK On — have long focused on nickel-cobalt-manganese (NCM) batteries. They plan to start mass-producing LFP batteries as early as this year to compete with China’s low-cost products. However, the sudden emergence of sodium-ion batteries has raised fresh concerns, especially as China, with government-backed R&D acceleration, moves faster than expected.

Some in the industry believe sodium-ion batteries will likely eat into the low-end LFP segment rather than disrupt the NCM market.

“Since sodium batteries are a budget-friendly option, any cannibalization would mostly affect LFP, not NCM,” said one industry insider. “They’re unlikely to appeal to performance-focused markets like the United States.”

Visitors stand near a flying test platform from Chinese battery manufacturer CATL during the Shanghai auto show on April 23, 2025. [AP/YONHAP]

U.S. market favors range, performance and NCM

Due to China-targeted trade restrictions and vast geography, the U.S. market prioritizes performance and driving range, favoring high-energy batteries.

NCM batteries, particularly high-nickel variants, dominate among U.S. consumers who prefer large SUVs and pickup trucks.

High-nickel NCM batteries boast an energy density of around 300 Wh/kg. According to SNE Research, NCM and nickel-cobalt-aluminum (NCA) batteries accounted for 93.3 percent of the U.S. EV battery market in 2023, up 2.2 percentage points from the previous year. In contrast, LFP batteries saw their share drop to 5.3 percent from 7.8 percent over the same period.

Korean firms are leaning into the U.S. market as a strategic lifeline.

SK On CEO Lee Seok-hee, left, and Slate CEO Chris Barman attend Slate’s vehicle and brand launch in Long Beach, California, on April 24. [SK ON]

SK On recently signed a battery supply agreement with Slate, a U.S. EV startup backed by Amazon founder Jeff Bezos. The contract involves supplying 20 gigawatt-hours (GWh) of batteries over six years, worth approximately 4 trillion won ($2.9 billion).

Slate CEO Chris Barman is reported to have chosen NCM over cheaper LFP because of the Inflation Reduction Act (IRA) and the need for higher energy density. Most LFP materials come from China, which complicates IRA compliance. NCM materials are more reliably sourced within the United States.

Koreans bet on high-voltage mid-nickel

In response, Korea’s top three battery firms are accelerating the development of high-voltage mid-nickel NCM batteries — a cost-effective solution that reduces nickel content to 50 to 70 percent while maintaining energy density through voltage optimization.

LG Energy Solution plans to start mass production of the batteries this year and pitch them to automakers.

According to market research firm LMC Automotive, NCM batteries’ global market share hit a low of 46.7 percent last year but is projected to rebound to 60.9 percent by 2030.

“CATL’s expanding portfolio from LFP to sodium-ion batteries presents a strategic challenge to Korean players,” said Jang Jung-hoon, an analyst at Samsung Securities. “Korean companies must continue to enhance their technological edge in high-nickel NCM to stay competitive.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY CHOI SUN-EUL [[email protected]]