South Korea’s three main electric vehicle (EV) battery manufacturers experienced a decline in their global market shares in the first ten months of 2024. This trend was highlighted by data from local market research company SNE Research, indicating a sluggish growth in key EV markets like Europe, North America, and even South Korea.
During this period, the total batteries fitted to new battery electric vehicles (BEVs), plug-in hybrid vehicles (PHEVs), and hybrid electric vehicles (HEVs) sold globally increased by over 25% to 687 GWh. Most of this growth was driven by Chinese automakers, with Contemporary Amperex Technology Company Limited (CATL) from China maintaining its lead in the global EV battery market. CATL’s sales surged by over 28% to 253 GWh, capturing a 37% market share.
BYD, with its FinDreams Battery Company Ltd subsidiary, emerged as the second-largest global supplier of EV batteries during the same period. Deliveries rose by 31% to 115 GWh, primarily due to strong internal demand and a 40% increase in global NEV sales.
On the other hand, LG Energy Solution, South Korea’s largest EV battery manufacturer, saw a modest 6.4% increase in EV fitment to just over 82 GWh, positioning it as the third-largest global supplier with a market share of around 12%. Panasonic followed closely as the fourth-largest supplier with a market share between 6-7%.
Among South Korean manufacturers, SK On was the second-largest EV battery manufacturer, with global deliveries growing by 9.5% to 31 GWh. Samsung SDI, on the other hand, experienced only a 2% growth to 26 GWh in the same period.
South Korea’s EV battery manufacturers have heavily invested in establishing a strong presence in the North American EV battery industry. However, concerns have arisen about the growth prospects in this market, especially with the expected withdrawal of federal EV tax purchasing incentives under the Inflation Reduction Act and the production tax credit (AMPC) by President-elect Donald Trump. Additionally, the slowdown in EV demand in Europe following the withdrawal of subsidies in key markets has also contributed to the challenges faced by these manufacturers.
Overall, the global EV battery market landscape is evolving rapidly, with Chinese manufacturers leading the way in market share and growth. South Korean manufacturers are facing stiff competition and market dynamics that require strategic adjustments to maintain their positions in the global EV battery industry.
