Korea's global battery market share rises, but so does foreign reliance on key materials

Rep. Kim Kyung-man of the ruling Democratic Party. (Rep. Kim Kyung-man office)

South Korea commands almost half of the world’s secondary battery market, but the country‘s reliance on imported materials is growing to an alarming level, data showed Friday.

According to the Ministry of Trade, Industry and Energy data obtained by Rep. Kim Kyung-man, the nation’s share of the global secondary battery market spiked from 34.7 percent in 2018 to 44.1 percent in 2020. The country is home to three of the world‘s major battery producers, LG Energy Solution, Samsung SDI and SK On (formerly SK Innovation).

However, 63.9 percent of four key materials used for battery making -- cathodes, anodes, and separators and electrolytes -- were imported from foreign companies.

In detail, 50 percent of cathodes, 77.6 percent of anodes, 61.5 percent of separators and 66.3 percent of electrolytes were supplied from non-Korean companies.

Local companies account for 19.5 percent of the global cathode production, 8.3 percent of anode, 19.7 percent of seperator and 12.1 percent of electrolytes, the data showed.

“Korea is without a doubt a battery superpower, but the heavy foreign reliance (on importaed materials) can lead to a situation where ‘one man sows and another man reaps.’ Comprehensive support is necessary to raise the localization rate,” Rep. Kim said.

By Kim Byung-wook(kbw@heraldcorp.com)