‘After strong growth, LG Chem controls a quarter of the market for EV batteries’
LG Chem is the world’s largest supplier of batteries for electric cars, according to a research firm. The South Korean manufacturer has more than doubled its market share compared to the same period last year.
The website Koreabizwire, among others, mentions the data from research agency SNE Research, which specializes in sustainability market sectors. Based on the January to July period, LG Chem is responsible for a market used battery capacity of 13.4GWh, an increase of 97.4 percent from the same period a year ago. That gives the company a market share of 25.1 percent, compared to 10.6 percent a year earlier.
The Chinese CATL is not far from LG Chem with a total market capacity of 12.7GWh, although that is a decrease of 25.5 percent; previously CATL was at 17GWh. With the 12.7GWh, CATL now has a market share of 23.8 percent. After that, Panasonic follows with 10.1GWh, which comes down to a share of 18.9 percent.
The other South Korean manufacturers are a lot smaller, but are also growing. Samsung SDI is now at 3.4GWh, a share of 6.4 percent. That is an increase of 52.6 percent. The even smaller, also South Korean SK Innovation saw its share increase by 86.5 percent, from 1.2 to 2.2GWh. Samsung SDI will benefit from volumes of Audi e-tron, Ford Kuga PHEV and BMW plug-in hybrids, while SK Innovation will supply cells to Hyundai and Kia.
The significant growth at LG Chem is mainly attributed by SNE Research to the good sales of the Tesla Model 3, the Renault Zoe and other electric cars, all of which use battery cells from this manufacturer. Growth at LG Chem could increase even further, thanks in part to the collaboration with Tesla in China. The South Korean chemical company in Poland is also setting up a large factory for lithium-ion cells, for which the European Investment Bank released a loan of 480 million euros in March.
The total of all manufacturers added together is 53.3GWh. That is a significant decrease compared to last year, when 64.1GWh was achieved. This sharp decline can be attributed to the consequences of the corona crisis, which has hit car manufacturers significantly.