Western battery setbacks ignite fierce S. Korea-China battery rivalry

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Western battery setbacks ignite fierce S. Korea-China battery rivalry

Western battery setbacks ignite fierce S. Korea-China battery rivalry Germanys subsidy revival expected to boost European EV sales

www.chosun.com

Western battery setbacks ignite fierce S. Korea-China battery rivalry​

Published 2024.09.24. 11:04

According to industry sources and reports on Sept. 24, Volvo Trucks has decided to delay the construction of a new battery plant in Sweden by one to two years. Initially planned for next year, the project has been postponed despite Volvo Trucks holding a 56.9% share of the European electric truck market. The Wall Street Journal (WSJ) reported that global electric truck orders have declined for five consecutive quarters.

In a related development, the Italian government has announced plans to redirect €200 million (approximately 300 billion won) in subsidies, originally intended for the Stellantis-Mercedes-Benz EV battery plant, to other projects. This decision follows the halt of construction on the joint plant in June. Stellantis, in partnership with Mercedes-Benz and TotalEnergies, had planned to establish three gigafactories in France, Germany, and Italy under a joint venture Automotive Cells Company (ACC). Currently, only the French plant is operational, with the German and Italian factories on hold.

Northvolt, Europe’s largest battery manufacturer, is also undergoing restructuring due to the challenging conditions in the EV market. The company is reassessing its growth strategy after the cancellation of a €2 billion (approximately 3 trillion won) battery supply contract with BMW. A battery industry representative commented, “With the significant drop in battery prices, it has become increasingly challenging for Western newcomers, who lack manufacturing experience, to enter the market.”

As Western companies’ expansion plans falter, competition between South Korean and Chinese firms in the European battery market is expected to become more intense. According to global market research firm EV Volumes, the combined market share of the three major South Korean battery manufacturers (LG Energy Solution, Samsung SDI, and SK On) in Europe was around 70% in 2020 but has since dropped to 50% during the January to July period of this year. Meanwhile, Panasonic’s share has plummeted from 15% to 2%.

During this same period, China’s CATL and BYD saw their combined market share rise from 10% to 42%. Han Byung-hwa, an analyst at Eugene Investment & Securities, noted, “While South Korean battery companies have secured a strong position in the U.S. market, their current challenge is to defend their European market share against Chinese competitors.”

South Korean companies are planning to focus on the mid-to-low price segment of the European market. LG Energy Solution and SK On are set to introduce high-voltage mid-nickel batteries with a higher manganese content, while Samsung SDI is gearing up to promote its LFP+ batteries, which feature new electrode technology and incorporate manganese into LFP batteries.

EV sales in Europe have fallen by approximately 4% year-on-year as of last month, primarily due to the termination of subsidies in Germany, the largest consumer market. However, recent reports indicate that the German government is considering reintroducing subsidies, offering €6,000 (approximately 8.94 million won) for new EVs and €3,000 for used EVs when old internal combustion engine vehicles are scrapped. This move is anticipated to revive the market’s growth trajectory starting next year.

A market researcher commented, “The downturn in the European market began with the reduction and elimination of German subsidies last December. The reintroduction of subsidies could be a pivotal moment for the market, and there is a growing likelihood that major countries will resume policy support to prevent further deterioration of the business environment for European EV manufacturers.”

 

[Alter_Ego]

Another manufacturing sector goin down in the drain.
How does East Asian manage to keep production costs so low?

 

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Another manufacturing sector goin down in the drain.
How does East Asian manage to keep production costs so low?

The more concentrated the industrial chain, the lower the cost
Welcome to join the East Asian industrial chain

 

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EV Battery Market Grows 20%, but South Korean Players Lose Ground — BigGo Finance

Global electric vehicle battery usage reached 608.5 GWh in the first half of 2026, up 20% year-over-year, but South Korea's top battery makers saw…

finance.biggo.com

EV Battery Market Grows 20%, but South Korean Players Lose Ground​

2026-08-05 14:27 (GMT+8)

Global electric vehicle battery usage reached 608.5 GWh in the first half of 2026, up 20% year-over-year, but South Korea's top battery makers saw their combined market share decline. Chinese manufacturers, led by CATL, drove the growth, with the top seven Chinese firms commanding a combined 72.4% share. CATL solidified its No. 1 position with a 39.9% share, while mid-tier Chinese players posted growth rates of 40-50%. In contrast, LG Energy Solution held onto third place but saw its share slip to 8.6%, and SK On dropped to eighth place as its battery usage fell 6.7%. Samsung SDI fell out of the top 10 entirely. Analysts point to softening EV demand in North America and Europe, along with the aggressive push of Chinese LFP batteries, as key factors eroding the position of South Korean battery makers. Product portfolio diversification and supply chain regulatory compliance have emerged as critical challenges going forward.

Key Elements​

The global electric vehicle battery market grew 20% in the first half of this year, surpassing the 600 gigawatt-hour (GWh) threshold, but the standing of South Korea's three major battery makers actually contracted, squeezed by fierce competition from Chinese rivals and demand adjustments in key markets.

According to SNE Research, a specialized energy market research firm, total battery usage across battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs) registered worldwide reached 608.5 GWh from January to June 2026. This represents a 20.0% increase compared to the same period last year, indicating that battery demand is maintaining solid growth as the transition to electrification accelerates.

However, the fruits of this market growth were largely captured by Chinese companies. China's CATL recorded 242.7 GWh of battery usage, a 25.3% increase year-over-year, maintaining its unshakeable No. 1 position. Driven by high growth exceeding the market average, its market share rose 1.7 percentage points from 38.2% to 39.9%, putting it on the verge of breaching the 40% mark.

Second-place BYD also held its position with 87.7 GWh. However, its growth rate was a mere 1.6%, significantly underperforming the broader market, causing its share to decline from 17.0% to 14.4%. Even so, the combined share of CATL and BYD reached 54.3%, meaning they control more than half of the global market.

The surge of mid-tier Chinese companies was also notable. Fourth-place CALB recorded 31.2 GWh, up 39.5% year-over-year, while Gotion High-tech, which climbed to fifth place, posted 28.0 GWh, a 43.3% surge. Seventh-place EVE Energy recorded the highest growth rate at 51.7%, reaching 20.9 GWh. Including ninth-place Svolt (15.7 GWh) and tenth-place Sunwoda (14.5 GWh), the combined market share of the top seven Chinese companies reached 72.4%, expanding by 1.5 percentage points year-over-year. This means Chinese firms now occupy seven of the top ten spots in the global battery market.

In contrast, South Korean companies appear to be sidelined from the market's growth trajectory. LG Energy Solution (KRX: 373220) held onto third place with 52.6 GWh, an 8.4% increase year-over-year, but its growth significantly lagged the market average of 20.0%, causing its share to drop 1.0 percentage point from 9.6% to 8.6%. While supplies to major automakers like Tesla, Hyundai Motor Group, GM, and Volkswagen remained stable, the company failed to keep pace with the overall expansion of the market.

SK On delivered an even more disappointing report card. Its battery usage fell 6.7% year-over-year to just 19.0 GWh, and its market share dropped 0.9 percentage points from 4.0% to 3.1%. Its ranking also slipped from sixth to eighth place. This is interpreted as a consequence of key customers in North America and Europe—including Hyundai Motor Group, Ford, Volkswagen, and Mercedes-Benz—adjusting their EV sales and production plans.

Samsung SDI has completely fallen out of the top 10 since March, vanishing from the rankings. SNE Research did not disclose Samsung SDI's specific battery usage and market share in this first-half report.

Japan's Panasonic Energy ranked sixth with 22.7 GWh, a 10.2% increase, but also underperformed the market average, causing its share to decline from 4.1% to 3.7%. Tesla's North American sales flow provided some contribution, but it was insufficient to keep up with the market's growth momentum.

Underpinning the dominance of Chinese companies is the overwhelming price competitiveness of lithium iron phosphate (LFP) batteries, supported by a massive domestic market. Through rapid product transitions and aggressive capacity expansion, they are quickly broadening their customer base to include not only Chinese automakers but also overseas EV and commercial vehicle manufacturers.

SNE Research commented, "Amid ongoing policy and demand uncertainty in the North American market, requirements for digital registration systems and supply chain information management for the introduction of battery passports are materializing, particularly in Europe." The firm forecasted, "Future competitiveness will be determined not only by production scale but also by the operational efficiency of regional production hubs, customer diversification, product mix including LFP and next-generation cylindrical batteries, and the capability to respond to supply chain regulations."

Meanwhile, South Korea's three battery makers are seeking to turn the tide, having recently fired a signal flare for an earnings rebound. LG Energy Solution emerged from a deficit in the second quarter of this year, and Samsung SDI successfully returned to profitability after seven quarters. SK On also recorded its highest-ever quarterly results. This was largely due to the successful strategy of diversifying their business structures into non-EV sectors such as energy storage systems (ESS), uninterruptible power supplies (UPS) for data centers, and battery backup units (BBU).

However, LG Energy Solution's operating profit included 241 billion won (approximately $169.3 million) in Advanced Manufacturing Production Credits (AMPC) under the U.S. Inflation Reduction Act (IRA). Excluding this, the company remains in an operating loss, leading to observations that it is still premature to say stable profitability has been secured from battery sales alone.

Adding to the pressure, the technological offensive from Chinese companies is intensifying. CATL has formalized plans for the mass production of its second-generation sodium-ion battery, "Naxtra," within the year, while BYD and CATL have each successively unveiled ultra-fast charging technologies capable of around 10-minute charges, moving to preempt the next-generation market. South Korean companies are countering with Samsung SDI's solid-state batteries, LG Energy Solution's lithium-manganese-rich (LMR) batteries, and SK On's 7-minute charging technology, but the battle for technological leadership is expected to become even more fierce.