Hanwha, China's CATL focus on electric ships as industry moves toward decarbonization

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Hanwha, China's CATL focus on electric ships as industry moves toward decarbonization

Published: 19 Jan. 2026, 10:21

Audio report: written by reporters, read by AI

Hanwha Group Vice Chairman Kim Dong-kwan gives a keynote speech at the 2024 World Economic Forum in Davos, Switzerland [HANWHA GROUP]

The era of electric-powered ships is fast approaching, following in the footsteps of EVs, as the global shipping industry accelerates its shift toward decarbonization.

Though major companies such as Hanwha are presenting electric propulsion as a solution, significant technical hurdles remain.

Hanwha Group Vice Chairman Kim Dong-kwan proposed the creation of an “electric ship marine ecosystem” in a column published ahead of the World Economic Forum’s annual meeting on Monday in Davos, Switzerland, according to Hanwha.

Kim argued that the shipping industry, which has long relied on fossil fuels, must fundamentally transform its propulsion systems to achieve sustainable change.

He outlined the need for electric ship development, reliable energy storage systems (ESS), port charging infrastructure and decarbonized energy supply facilities.

“For electric ships to be widely adopted, stable ESS is essential,” Kim said. “We also need to improve access to battery charging and replacement infrastructure.”

“Hanwha is laying the groundwork for ships and ports to evolve together with the broader ecosystem by applying advanced ESS and clean energy solutions across maritime infrastructure,” he continued. “We’re in talks with European port authorities on pilot projects involving ESS and ship charging systems.”

An electric propulsion ship powered by batteries from the Chinese battery company CATL [CATL]

Overseas, the commercialization of electric ships is also gaining momentum. China’s CATL, the world’s largest battery maker, is quickly moving to dominate the electric vessel market.

CATL — which holds a 40 percent share in the electric ship battery market — plans to launch its own fully electric ship within the next three years, according to the South China Morning Post.

Another Chinese battery manufacturer, Gotion High-Tech, has already commercialized batteries for electric container ships.

The shipping industry’s growing interest in electric propulsion is driven by global regulatory changes. The International Maritime Organization (IMO) has set a net-zero target for greenhouse gas emissions from shipping by 2050.

To meet this goal, the IMO set interim targets to reduce emissions by at least 20 percent by 2030 and 70 percent by 2040, compared to 2008 levels.

A screen shows the logo of CATL, a Chinese battery company, during the listing ceremony at the Hong Kong Stock Exchange in Hong Kong on May 20, 2025. [REUTERS/YONHAP]

The European Union has also tightened carbon emissions regulations, requiring shipping companies to secure emissions allowances for their entire carbon output starting in 2027.

Electric ships offer several clear advantages. Compared to diesel-powered vessels, they produce far less noise and vibration, reducing harm to marine ecosystems. Their simpler structure also translates into lower maintenance costs over time.

While traditional internal combustion engine ships operate at about 20 percent energy efficiency, electric ships can achieve up to 40 percent, making them a more economical option.

As a result, the global electric ship market is projected to grow rapidly from $6.5 billion in 2025 to $58.8 billion in 2035 — nearly a tenfold increase over a decade, with an average annual growth rate of 24.6 percent, according to market research firm Future Market Insights.

The firm added that the adoption of hybrid and fully electric propulsion solutions is expected to accelerate.

However, challenges remain before large-scale adoption becomes feasible. At sea, charging infrastructure is still scarce. This makes onboard energy storage — in the form of ESS — critical for long voyages.

Hanwha Group Vice Chairman Kim Dong-kwan, left, Prime Minister of Canada Mark Carney, center, and Prime Minister Kim Min-seok are seen during a visit to Hanwha Ocean's Geoje shipyard in Geoje, South Gyeongsang, on Oct. 30, 2025. [YONHAP]

But ESS units are currently heavy, expensive to install and technologically immature, which limits their application in transoceanic vessels.

As a result, the marine batteries supplied by CATL are mostly used in inland waterway ships and short-distance cruises.

Safety is another key consideration, especially the need to minimize fire risks at sea. Liquid immersion cooling, a next-generation thermal management technique that uses nonconductive coolant to cool components, is emerging as an important technology.

In 2024, Hanwha Aerospace and SK Enmove announced they had developed technology that fills lithium-ion battery modules with cooling fluid to prevent fires in marine ESS. Their design prevents flames from spreading from one cell to another, but the technology has yet to be commercialized.

“Electric-powered ships are still in the early stages of development,” said an industry insider. “To make commercialization possible, we’ll need robust R&D [research and development] investment and institutional support.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NA SANG-HYEON [[email protected]]