Three South Korean electric vehicle battery makers saw their global market share decline in the first 10 months of 2024, according to industry data released on Monday. LG Energy Solution, SK On Co., and Samsung SDI Co. held a combined 20.2% of the market, down 3.5 percentage points from the previous year. In contrast, Chinese rivals CATL and BYD increased their share to 53.6%.
In 2021, the South Korean firms held 31.7% of the market, while Chinese companies had 39.7%. The decline in South Korean market share is attributed to the rapid growth of Chinese companies, which focus on affordable products amid a slow-growing EV market.
Chinese makers lead with prismatic cells, which offer better durability and energy density. Prismatic cells accounted for 78.3% of the market in January-October 2024, up from 70.9% in 2023. Samsung SDI is the only South Korean company producing prismatic cells, and LG Energy Solution recently announced plans to develop them with General Motors.
In response to rising competition, South Korean firms are also working on lithium iron phosphate (LFP) batteries, which are cheaper and more sustainable than the nickel-cobalt-manganese (NCM) batteries widely used in EVs. SNE Research noted that LFP batteries have contributed to the increase in Chinese battery makers' market share.
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