S. Korean EV battery trio rapidly lose ground to Chinese rivals in 2022

[Photo by MK DB]

South Korea’s top three electric vehicle (EV) battery makers are rapidly losing ground to their Chinese rivals, with LG Energy Solution Ltd. yielding its title of the world’s second-largest EV battery supplier to Chinese peer BYD Co. last year.

According to SNE Research on Wednesday, global battery usage for EVs from January to November in 2022 totaled 446.0 gigawatt-hour (GWh), recording a 74.7 percent year-on-year growth. But the combined market share of the Korean EV battery trio - LG Energy Solution, SK on Co., and Samsung SDI Co. - retreated to 23.2 percent from 30.4 percent.

Korean battery trio lost much of their global market share to Chinese rivals. Contemporary Amperex Technology Co. (CATL) cemented its No. 1 position with its battery usage more than doubled on year. BYD jumped to second place from fourth place in global market share after its battery usage nearly tripled on year, elbowing out LG Energy Solution and Japan’s Panasonic, which ranked No. 2 and No. 3, respectively, in 2021.

CATL and BYD together commanded 226.3GWh or more than half of global battery usage for EVs in 2022.

LG Energy Solution, the largest EV battery firm in Korea, recorded a 9.7 percent year-on-year increase in battery installation for global EVs. But its global market share fell to 12.3 percent from 19.6 percent and moved down one notch to No. 3 in global ranking amid Chinese firms’ rapid growth.

SK on ranked No. 5 and Samsung SDI No. 6.

SK on saw a 72 percent increase in EV battery installation last year, recording 26.1 GWh, but its market share declined to 5.9 percent from 6 percent.

Samsung SDI showed a significant increase in EV battery usage, jumping 74.9 percent to 22.1 GWh, but its market share remained the same at 5 percent.

EV battery market experts expect the Chinese players will maintain strong growth as they rapidly expand production. CATL’s EV battery shipments are projected to reach 450GWh this year versus 300GWh recorded in 2022.