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Three South Korean electric vehicle (EV) battery manufacturers accounted for 31% of the global market in the first quarter of this year, but their share has declined since last year in the face of stiff competition with Chinese competitors, the market research firm said Monday.
The three companies – LG Energy Solutions – Samsung SDI and SK Innovation – provided the equivalent of 47.8 gigawatt hours (GWh) of electric vehicle batteries from January to March, an increase of 127% over the same period last year, according to data released by SNE Research.
Its sales of electric vehicle batteries have risen sharply in line with strong demand for battery-powered cars by major automakers, but the combined share has declined from 37.8% last year as Chinese manufacturers expanded their presence in their home country, the world’s largest electric vehicle market. .
LG Energy Solutions, which supplies batteries for electric cars to Tesla, Volkswagen and Ford, ranked second with a 20.5% market share in the first three months of this year, after China’s CATL with 31.5%.
The market share of the other two Korean companies – Samsung SDI and SK Innovation – reached 5.2%, placing them in the fifth and sixth places, respectively, by a very small margin.
“In light of rapid changes in electric battery technology and increasing competition, it appears that Korean battery makers are holding back because of Chinese companies,” SNE Research said in a report.
“With CATL at the fore, Chinese battery makers are devouring the global market at an alarming rate and are likely to unleash fierce competition in the electric vehicle battery market in the near future,” she added.