K-Battery Expands into Europe, Surpassing China to Become No.1 in Electric Vehicle Sales

1.33 million units in Europe, 1.25 million units in China
First sales reversal last year
European cars with technology and mass production capabilities
Preferred Korean battery companies such as LG Energy Solution, SK Innovation, Samsung SDI

SK Innovation's second plant under construction in Komarom, Hungary. Photo by SK Innovation

[Asia Economy Reporter Choi Dae-yeol] Europe, which SK Innovation has decided to target together with Ford, has recently emerged as the largest electric vehicle (EV) market. Last year, 1.33 million electric vehicles were sold in Europe, 80,000 more than China's 1.25 million. China, the world's largest automobile market, had held the top spot in EV sales for several years but was overtaken for the first time.

EV sales have surged globally this year as well, intensifying competition between Europe and China. In the first half of this year, about 1.03 million EVs were sold in Europe, compared to approximately 1.02 million in China. Both figures more than doubled compared to the same period last year. Among the world's three largest automobile markets, the remaining one, the United States, recorded 270,000 EV sales, still only about a quarter of Europe and China's levels.

This is why domestic battery companies have recently been strengthening their presence in Europe. Korean battery makers such as LG Energy Solution, SK Innovation, and Samsung SDI are operating large-scale factories and supplying batteries to major European automakers including Volkswagen, Stellantis, Mercedes-Benz, and BMW. While China is openly supporting its domestic EV and battery companies to grow, making it relatively difficult to penetrate that market, European automakers tend to prefer Korean battery companies that possess advanced technology and mass production capabilities.

A battery is installed in the electric vehicle EQC at a Mercedes-Benz factory in Germany.

According to the European Commission, most EV battery cells and modules in Europe depend on imports, with China accounting for 26%, Japan 31%, and other countries 43%. Most of the 'others' are Korea. Recognizing the importance of battery supply for expanding EV adoption, the EU Executive Commission established the European Battery Alliance (EBA) to develop domestic production bases and research and development (R&D) infrastructure. Northvolt, invested in by Volkswagen, receives support from this initiative.

However, as these are still in the early stages with startups, it is challenging to mass-produce at scale and supply automakers reliably. An industry insider said, "Automakers, including those producing EVs, need to secure stable supply contracts at least 2 to 3 years in advance, but except for Korean companies, it is difficult to find suitable alternatives for batteries," adding, "This is why Korean battery companies continue to receive 'love calls' from other countries within Europe."

The EU Executive Commission's 'Fit for 55' plan, announced last month to reduce carbon emissions, raised the emissions reduction target for the transportation sector, which is expected to accelerate EV adoption further. The plan initially aimed to reduce carbon emissions from new cars sold in Europe by about 38% by 2030 but has now increased the target to 55%. Under the original plan, the EV share among new cars was expected to be around 40-50%, but with the raised target, the EV share needs to increase to 60-70%. Korean battery companies considering additional factories in Europe are also expected to expedite their decision-making.

British Prime Minister Boris Johnson is inspecting the production process at an electric vehicle battery factory he visited last month.

This content was produced with the assistance of AI translation services.