Global EV Battery Market (Excluding China) Grows 24.9% from January to July... Korean Battery Makers' Share Down 7.1%p

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On September 4, market research firm SNE Research announced that the total battery usage for electric vehicles (including battery electric vehicles, plug-in hybrid vehicles, and hybrid vehicles) sold worldwide, excluding China, from January to July this year reached 246.2 gigawatt-hours (GWh), representing a 24.9% increase compared to the same period last year.

During the same period, the combined global market share for electric vehicle battery usage by the three major Korean battery makers-LG Energy Solution, SK On, and Samsung SDI-fell by 7.1 percentage points year-on-year to 37.8%.

LG Energy Solution grew by 6.2% (50.9 GWh) compared to the same period last year, maintaining its second-place position with a market share of 20.7%. SK On recorded a growth rate of 17.3% (24.6 GWh), ranking third with a 10.0% market share.

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In contrast, Samsung SDI saw a decrease of 10.4% (17.7 GWh). Samsung SDI's market share was 7.2%, ranking sixth after Japan's Panasonic (8.7%) and China's BYD (7.5%). Samsung SDI was ranked fifth (7.6%) in June and fourth (7.7%) in May, meaning it dropped from fourth to sixth place within two months.

Samsung SDI supplies batteries for electric vehicles produced by BMW, Audi, and Rivian. The slowdown in electric vehicle sales by its client companies, as well as their battery diversification strategies, are identified as factors contributing to Samsung SDI's decline in ranking. SNE Research stated, "BMW and other major electrified models are equipped with Samsung SDI batteries, but battery usage decreased by 5.9% year-on-year due to declining sales of these models. In the case of Rivian, the introduction of the Standard Range trim equipped with Gotion’s LFP (lithium iron phosphate) batteries from China also had a negative impact on Samsung SDI."

It is also noteworthy that Japan’s Panasonic, which had been stagnating for some time, is regaining prominence in the market. Panasonic is accelerating the restructuring of its supply chain to focus on North America in response to recently strengthened U.S. regulations on Chinese batteries and raw materials. SNE Research commented, "Panasonic is especially working to reduce its dependence on Chinese materials and to strengthen the stability of its battery production by expanding local procurement and securing new materials. This strategy is expected to provide an important foundation for recovering usage and maintaining market share in North America going forward."

China’s CATL maintained its strong first-place position in the global market outside China, growing 35.1% (73.3 GWh) year-on-year. Not only Chinese electric vehicle manufacturers but also major global companies are adopting CATL batteries.

BYD achieved a growth rate of 141.7% (18.4 GWh) in markets outside China, ranking fifth. BYD’s expansion in the European market is particularly notable. In the first half of this year, BYD battery usage in Europe reached 6.9 GWh, a 260.7% increase compared to the same period last year.

SNE Research suggested, "The optimal solution for Korean companies is to design batteries with different cathode materials for each region and to expand local production in North America and supply chains outside of China, thereby enhancing their ability to mitigate policy shocks."

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