Korean battery makers look over shoulder as Chinese, Japanese rivals advance in tech

[Graphics by Song Ji-yoon]

South Korean battery makers keep lead in global EV power outside China, but how long they can sustain supremacy is uncertain as they are being closely chased by Chinese and Japanese competitors on premium battery technology.

LG Energy Solution recently announced that it would start mass production of 4680 cylindrical batteries next year, a bigger pack under development by Tesla and its battery suppliers.

Tesla’s Model S is expected to be powered by the batteries that can drive up to 750 km or more on a single charge.

China’s CATL under government sponsorship is working on a cell-to-pack (CTP) 3.0 battery pack dubbed Qilin for mass production from next year, which is expected to enable EVs to drive up to 1,000 km on a single charge.

The No.1 EV battery maker is in the final stages of adding a battery plant in the U.S. to better compete with Korean makers on global stage regardless of ongoing trade row between Washington and Beijing, ahead of the introduction of United States-Mexico-Canada Agreement (USMCA) under which automotives to be sold in the U.S. must have 75 percent of their components manufactured in the U.S., Mexico and Canada from July 2025.

Japanese makers are going all-out to develop next-gen solid-state batteries dubbed to ensure higher safety with less battery-fire concerns and improved energy density, also under government support

Toyota has already set a goal to commercialize solid-state batteries by 2025. Honda is developing related technologies to reduce carbon dioxide emissions during the manufacturing process, and Nissan is studying ways to much lower the fire risk of the solid-state battery and enhance its performance.

To support their research and development, Japan’s Ministry of Economy, Trade and Industry has offered 151 billion Japanese yen ($1.12 billion) of its zero-carbon R&D subsidy for Honda and Nissan.

In Korea, SK on this year started mass production of high-nickel NCM batteries in its Georgia 1 plant, which will enable EVs to drive up to 700 km on a single charge. Samsung SDI has unveiled Gen 6 battery with 91 percent nickel content for a maximum driving distance of 700 km on a single charge, 100 km longer than the current Gen 5 model.

But to keep up global lead, Korean makers need aggressive state support for price competitiveness.

The key to the winning the future battery battle is technology, and Japan holds most source technologies of batteries,” said Cho Jaephill, professor of the Battery R&D Center at Ulsan National Institute of Science and Technology (UNIST). “The battery industry growth policy should be realigned to develop source technologies and groom top talent.”

The government also needs to take more flexible approaches to battery industry regulations amid rapid changes in the related technologies and business landscape, Cho recommended.

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