Attack of SK Inno, Shakes Off 'Latecomer' Label... Surpasses Samsung SDI for the First Time in Cumulative Ranking, Ranks 5th (Comprehensive)

SK Innovation ranks 5th as of July cumulative... Surpasses Samsung SDI for the first time
2nd place LG Energy Solution competes with China's CATL
Both top and mid-tier groups show Korea-China competition
Chinese companies show steady growth... Domestic 3 firms need to find new paths

[Asia Economy Reporter Hwang Yoon-joo] SK Innovation is shedding the label of a battery 'latecomer' and racing toward the top 3. For the first time, it ranked 5th worldwide (2nd domestically) in cumulative battery usage. While it has reached 5th place on a monthly basis before, this is the first time on a cumulative basis. SK Innovation's aggressive investments are being recognized as bearing fruit.

According to SNE Research on the 1st, the global market share of electric vehicle batteries registered in various countries from January to July this year showed that China’s CATL ranked first with 30%. Following were LG Energy Solution (24.2%), Panasonic (14.3%), BYD (7.3%), SK Innovation (5.4%), and Samsung SDI (5.1%).

LG Energy Solution recorded 33.2GWh, a 2.5-fold increase compared to the same period last year, but its ranking dropped one notch to 2nd place compared to the previous year.

SK Innovation’s growth was particularly remarkable. SK Innovation surged 147.8% to 7.4GWh, rising one rank to 5th place, while Samsung SDI increased 86.9% to 7.0GWh but fell two ranks to 6th place compared to the same period last year.

SK Innovation had previously surpassed Samsung SDI by a narrow margin on a monthly basis, but for the first time in cumulative terms as of July this year, it widened the gap by 0.3 percentage points to claim 5th place. The industry expects SK Innovation’s market share to reach 6% in the second half of the year.

The battery market is expanding due to the steady growth of Chinese companies. In contrast, Japanese companies, including Panasonic in 3rd place, fell significantly below the market average growth rate, with most seeing a decline in market share. The three domestic companies showed mixed growth rates compared to the market average, but overall their market shares slightly decreased.

The growth of the three domestic companies is attributed to increased sales of models equipped with their batteries. LG Energy Solution’s rapid growth was driven mainly by strong sales of Tesla Model Y (China-made), Volkswagen ID.4, and Ford Mustang Mach-E.

SK Innovation’s surge was led by increased sales of Kia Niro EV, Hyundai Ioniq 5, and Kona Electric (Europe). Samsung SDI’s growth was supported by increased sales of Fiat 500, Audi E-tron EV, and SEAT Leon PHEV, but the sharp decline in Volkswagen e-Golf sales significantly offset overall growth.

Notably, as of cumulative data in July, about 60% (at least 28,644 units) of the 47,508 newly registered electric vehicles domestically were equipped with SK Innovation batteries. Samsung SDI has not yet supplied batteries to Hyundai and Kia, so it is expected to increase its market share more rapidly once new electric vehicle models from Hyundai and Kia are released. In this case, SK Innovation and China’s BYD will fiercely compete, solidifying a Korea-China rivalry within the upper group (LG Energy Solution and CATL) and the mid-tier group.

SNE Research analyzed, "It is unlikely that the offensive by Chinese companies led by CATL and BYD will subside anytime soon, making the future of the three domestic companies somewhat uncertain."

Meanwhile, the total battery energy of electric vehicles registered worldwide as of cumulative July reached 137.1GWh, 2.4 times higher than the same period last year, and battery usage in July was 22.6GWh, doubling compared to the same month last year.

The electric vehicle battery market, which was hit by the COVID-19 pandemic in 2020, has continued its recovery for 13 consecutive months. Major markets including China, the U.S., and Europe all saw increases, with many Chinese companies leading market growth with triple-digit increases.

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