[Emergency, K-Battery] Securing Triple Production Capacity Last Year... Driving Ultra-Fast Growth

LG Energy Solution, SK On, and Samsung SDI Race Ahead
Expected to Produce Supply Volume for 4.05 Million Electric Vehicles
Rapid Investment to Seize Exploding Electric Vehicle Market

[Asia Economy Reporter Oh Hyung-gil] The three domestic battery companies have secured battery production facilities capable of supplying batteries for more than 4 million electric vehicles this year. This is a massive scale, accounting for 85% of the electric vehicles sold worldwide last year. In the battery war where Korean, Chinese, and Japanese companies are competing fiercely, they are making swift investments to secure the future market.

According to the industry on the 14th, LG Energy Solution, SK On, and Samsung SDI plan to secure a battery production capacity of 270 GWh this year. One GWh of battery capacity can be installed in 15,000 electric vehicles, so by the end of the year, they are expected to have production facilities capable of supplying batteries for 4.05 million electric vehicles.

Last year, the three domestic companies installed about 90 GWh of electric vehicle batteries, equivalent to about 1.35 million electric vehicles. Production capacity is expected to increase more than threefold compared to last year's installation volume.

LG Energy Solution will invest a total of 6.3 trillion KRW in facility investments to expand battery production capacity. This year, it plans to invest 5.6 trillion KRW in North America alone through 'Ultium Cells,' a joint venture with automaker GM in Michigan, USA.

SK On will start operations at its Georgia Plant 1 (9.8 GWh capacity) in the United States and Kom?rom Plant 2 (10 GWh capacity) in Hungary. The Iv?ncsa Plant in Hungary (30 GWh capacity), which cost 2.6 trillion KRW, will also begin production in 2024. The industry estimates that Samsung SDI will secure a production capacity of 54 GWh this year. Construction of Plant 2 near the Hungary Plant 1 is underway and is expected to start operations within the year.

[Image source=Yonhap News]

The reason the three battery companies are rapidly securing production capacity is due to the exploding electric vehicle market. According to the Korea Automotive Technology Institute, global electric vehicle sales reached 4.72 million units last year, more than doubling from 2.22 million units the previous year. Although sales this year may vary depending on subsidy policies, it is expected to comfortably exceed 6 million units.

Securing production capacity ahead of others and expanding overseas are the keys to survival. In competition with China and Japan, alliances and collaborations with domestic and foreign automakers hold the key. As the 'hegemony' battle between Tesla, the world's largest electric vehicle company, and traditional automakers intensifies, the competition for battery dominance is becoming fiercer. Tesla is threatening by partnering with CATL, BYD, and others targeting the Chinese market, which accounts for nearly half of the global electric vehicle market.

Professor Park Cheol-wan of Seojeong University said, "Concerns that Chinese battery manufacturers could achieve majority market share through large-scale supply are becoming a reality," adding, "This year, Korean battery companies must create a gap through product diversification and technological advancement."

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