Chinese companies doubled when Korean battery market share fell by 10%P

LG·Samsung·SK battery share 41%→30%
China’s battery usage surges… Close to half the market

Chinese companies doubled when Korean battery market share fell by 10%P
Dr. Robin Chung, founder and chairman of CATL, China, the world’s largest electric vehicle battery company

[아시아경제 최대열 기자] This year, the global market share of domestic electric vehicle battery makers has decreased by more than 10 percentage points from last year. The situation was similar for Japanese companies. During the same period, the share of Chinese battery companies doubled. As the sales of electric vehicles increased, battery use by most companies increased, but Chinese battery companies took over half of the total market.

Looking at the global electric vehicle battery usage from January to February this year, as determined by market research firm SNE Research on the 4th, the market share of the three domestic battery companies (LG Energy Solution, Samsung SDI, and SK Innovation) was calculated to be 29.5%. It decreased by more than 11 percentage points from 41.2% in the same period last year. The battery usage increased from 5.1GWh to 7.4GWh, but the total battery usage more than doubled and the market share stepped back.

Chinese companies doubled when Korean battery market share fell by 10%P
BYD’s electric car’Dang EV’ exhibited at the Beijing Motor Show in September last year

The share of Chinese battery makers surged from 22.1% to 43.7%. Among the top 10 companies, Chinese companies’ usage increased by three digits at once, leading the overall EV battery market to increase. The share of Japanese companies decreased from 31.8% to 20.6%, similar to that of Korea. SNE Research is based on the number of registered electric vehicle models in 79 countries where sales volume is determined, and then battery usage. The usage of the top 10 battery makers accounts for the majority, around 95% of the total.

This share of market share is based on the sales trend of finished cars and, strictly speaking, is not an indicator of the technology or market dominance of battery makers at this time. It means that if a battery that automakers are looking for a lot now, there is a high possibility that the battery will appear as a market share over months or years. However, the airflow in which the battery market leadership has passed from Korean companies to Chinese companies in the past has become more pronounced.

The Chinese government extended the subsidy for electric vehicles, originally scheduled until the end of last year, until next year, while removing the annual maximum supply limit. Last year, it was limited to 2 million units. The authorities are also actively promoting new markets, including subsidies for battery separation and replacement models. According to the Institute of Paranormal Bank of China, the electric vehicle battery market in China, which was 10 trillion won last year, is expected to reach 13 trillion won this year and 15 trillion won next year. It is in the form of a sharp recovery after hitting the low in the first half of last year, when demand was stagnant due to Corona 19.

Chinese companies doubled when Korean battery market share fell by 10%P

Major battery makers, such as CATL, the world’s number one battery maker, and BYD, which directly develops and produces batteries as the largest seller of electric vehicles in China by manufacturer, do not simply increase their market share by simply holding their own car makers on their backs. The trend is to increase the number of customers outside of China, significantly raising the eye level of mileage, safety, and cost competitiveness, which are considered to be the core competitiveness of batteries.

CATL will be selected as a battery supplier for Hyundai Motor’s electric vehicle platform, where competition has been fierce, while trading volume with Volkswagen, the world’s second electric vehicle maker, is expected to increase. Batteries are a traditional manufacturing industry that is well made by those who have invested in R&D for a long time and made a lot. At the beginning of this year, the two meetings emphasized the expansion of electric vehicle infrastructure such as charging stations, and the competition for battery development is expected to intensify as the spread of electric vehicles accelerates in the future.

Reporter Max Yeol [email protected]

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