Amid the steady global increase in demand for EV batteries, South Korea's market share is declining due to the rapid growth of Chinese companies. Despite U.S. and European efforts to curb its influence, China is leveraging its domestic market to produce excess supply and expand sales to emerging markets. In response, South Korean battery manufacturers plan to focus on diversifying their business strategies, including the production of low-cost models and hybrid batteries.

According to industry sources on January 7, the total battery usage in electric vehicles registered worldwide from January to November 2024 reached approximately 785.6 GWh, a 26.4% increase compared to the same period the previous year. During the same period, South Korea's top three battery manufacturers (LG Energy Solution, Samsung SDI, and SK On) saw growth in their global EV battery usage. However, their market share declined by 3.7 percentage points year-over-year, falling to 19.8%.

In this context, South Korean companies are expected to enter the LFP (Lithium Iron Phosphate) battery market, which is dominated by Chinese manufacturers, to achieve tangible results. The growing exports of Chinese firms have made it increasingly challenging for South Korea's battery makers to compete with their NCM (Nickel, Cobalt, Manganese) batteries, which are their core products. Automakers such as Volkswagen, GM, and Hyundai Motor are reportedly expanding the use of LFP batteries in their mid- to low-priced vehicle lineups.

LFP batteries are, on average, 20-30% cheaper than NCM-based ternary batteries. This cost advantage significantly enhances the price competitiveness of electric vehicles, making LFP batteries highly attractive in the market.

China holds a dominant position in LFP battery-related patent filings. As of 2022, China accounted for 63% of all LFP-related patents, with 4,695 filings. It was followed by the United States (11%), Europe (9%), and South Korea, which holds approximately 10% of the share.

In this context, South Korea is pursuing a strategy to secure its market position through qualitative competitiveness in patents and technological breakthroughs. With China's price advantage driven by low labor costs and access to raw materials, there is a growing consensus that domestic companies must focus on developing differentiated technologies to maintain their competitiveness.

LG Energy Solution has signed a contract with Renault in France to supply pouch-type LFP batteries for electric vehicles. The agreement spans five years, starting at the end of 2025, and involves the supply of approximately 39 GWh of batteries—enough to produce around 590,000 pure electric vehicles. The batteries will be manufactured at LG Energy Solution's Poland plant and will be installed in Renault's next-generation EV models.

Samsung SDI has begun developing LFP batteries for energy storage systems (ESS) with the goal of mass production by 2026. The company is particularly focusing on lightweighting LFP batteries to enhance its technological competitiveness. Meanwhile, SK On was the first among South Korea's top three battery manufacturers to unveil a prototype LFP battery for electric vehicles in March 2023, targeting mass production between 2026 and 2027.

An industry insider stated, "LFP batteries have high price competitiveness, and demand is expected to steadily increase, particularly in the mid- to low-priced EV market." They added, "As the EV market expands, the proportion of the mid- to low-priced segment will inevitably grow, making it highly likely that the market share of LFP batteries will continue to increase."

ChatGPT를 사용하여 번역한 기사입니다.