'K-Battery' Exports Increase for 5 Consecutive Years... "New Record of $7 Billion This Year"

Rendering image of Hyundai Motor Company's dedicated electric vehicle brand IONIQ lineup. From left to right: IONIQ 6, IONIQ 5, IONIQ 7. (Image source=Yonhap News)

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[Asia Economy Reporter Moon Chaeseok] Exports of secondary batteries are expected to record an all-time high this year. They have shown a continuous increase for five consecutive years until last year. As the global electric vehicle (EV) market expands, domestic companies are showing a clear increase in production, exports, and domestic sales centered on lithium-ion batteries. Thanks to this, the global market share of the three domestic companies?LG, Samsung, and SK?has more than doubled in one year to 34%.

Production, export, domestic sales performance, and outlook of secondary batteries in Korea. (Source: Ministry of Trade, Industry and Energy · Korea Battery Industry Association)

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On the 18th, the Ministry of Trade, Industry and Energy and the Korea Battery Industry Association forecast that exports of secondary batteries this year will increase by 5.7% from last year's record high to $7 billion (approximately 7.724 trillion KRW). Due to the influence of eco-friendly policies in major countries such as Europe, the United States, and China, the front-end industries such as electric vehicles and energy storage systems (ESS) are expanding, leading to a significant increase in demand for secondary batteries.

Production is expected to reach 31 trillion KRW, a 32% increase from this year, and domestic sales are expected to increase by 19.8% to 6.3 trillion KRW. Production is rapidly increasing, centered on lithium-ion batteries. Domestic sales are benefiting from the unveiling of Hyundai Motor Group's dedicated electric vehicle platform E-GMP and the launch of new models such as Ioniq 5, Genesis G80, JW (all Hyundai), CV (Kia), and E100 (SsangYong).

Last year, South Korea's secondary battery exports increased by 2.9% from the previous year to $6.57 billion (approximately 7.22 trillion KRW), production rose 20% to 23.3 trillion KRW, and domestic sales increased by 11.6% to 5.27 trillion KRW. According to market research firm SNE Research, the global EV market size increased from 2.3 million units in 2019 to 2.5 million units from January to November last year. This indicates that the EV market is rapidly growing not only in South Korea but also in major countries such as Europe, the United States, and China.

Major Companies' Electric Vehicle Battery Market Share Rankings. (Source: Ministry of Trade, Industry and Energy · SNE Research)

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Our companies have demonstrated their presence amid fierce competition. The global market share of the three major domestic companies?LG Energy Solution, Samsung SDI, and SK Innovation?was 34% last year, more than double the 16% in 2019. According to SNE Research, as of November last year, LG Energy Solution ranked 2nd globally, Samsung SDI 4th, and SK Innovation 5th. However, it is a concern that LG Energy Solution lost its 1st place to China's CATL in November last year.

Park Jin-gyu, Vice Minister of the Ministry of Trade, Industry and Energy, said during a visit to the secondary battery solution company Misum SysTech, "The Ministry of Trade, Industry and Energy will spare no effort to provide full support for the activation of the secondary battery industry, including technology development, demonstration, safety technology, and standardization."

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