The Impact of China's Electric Vehicle and Battery Industry on the Global Market.

As of the first half of 2023, China's automotive and battery industries have demonstrated significant growth. This growth is evident in the market share of Chinese automotive OEMs and battery companies, which stand at 11.8% and 32.9%, respectively, in the global market.

 

Currently, Korean companies have been leading in the NCM battery market, and it is expected that all three Korean companies will participate in the LFP battery market from 2024 onwards.

 

Prominent Chinese automakers such as Geely Auto Group, which owns major brands like Volvo and Polestar, Shanghai Automotive, BYD, and others, are gaining recognition as key drivers of this growth, particularly due to the surge in electric vehicle sales in Europe and Asia. The increase from 9% in 2019 to 11.8% in the first half of 2023 is a significant trend to note.

 

Battery companies in China, such as CATL and BYD, competing with K-Battery, have significantly expanded their battery production capacity based on subsidies from the Chinese government. As a result, they are rapidly expanding their market share in the global battery market, rising from 9% in 2019 to 32.9% in the first half of 2023.

 

The market share gap in the global electric vehicle battery market between the world's number one, LG Energy Solution, and China's CATL has narrowed to 1.5% as of the first half of this year, with LG Energy Solution at 28.7% and CATL at 27.2%.

 

Mr. Kim Kwang-joo, CEO of SNE Research, attributes the declining market share of Korean battery companies to the fact that their expansion in Europe, the United States, and Southeast Asia is lagging behind China's. He anticipates that in the medium to long term, Korean battery manufacturers will expand their market share.

 

Currently, Korean companies have been leading in the NCM battery market, and it is expected that all three Korean companies will participate in the LFP battery market from 2024 onwards. Additionally, Korean companies are positioned favorably in the growing cylindrical 4680 battery market, driven by Tesla. In the medium to long term, Korean companies are expected to increase their market share, competing with China's rapid growth. Korean companies are solidifying their presence in the global battery market.