As the number of automobile manufacturers adopting Chinese batteries, including CATL, steadily increases in the global electric vehicle market, the positions of Korea's three battery corporations are being narrowed. With CATL holding an overwhelming market share, demand for companies like BYD, CATL, and Guoxuan Hi-Tech is also rising, further widening the gap between Korean and Chinese battery corporations.
According to the industry on the 15th, Hyundai Motor is in discussions for a large-scale electric vehicle battery supply contract with China’s CALB. The contract size is 30 gigawatt-hours (GWh), enough to produce 58,000 units of the electric vehicle Ioniq 5. Hyundai has previously equipped some of its small car models produced domestically and abroad with CATL batteries, but this is the first time CALB has been mentioned as a supplier.
CALB is the third-largest battery company in China, following CATL and BYD, and is gradually increasing its influence in the global market. With rising demand from global automobile manufacturers such as Toyota, Volvo, and Hyundai, it is establishing overseas production bases. A factory being built in Portugal with an investment of approximately 2 billion euros (around 3 trillion won) aims to start operations in 2028.
Considering that BYD, which closely follows CATL, will produce its own electric vehicle batteries, CALB is effectively assessed to be China's second-largest battery company. Although its market share is significantly lower than that of CATL, it was the first to list on the Hong Kong Stock Exchange. CALB became the first battery company to enter the Hong Kong market in October 2022.
As CATL surpasses Korea's three battery companies with its overwhelming market share globally, concerns are growing regarding the pursuit by latecomers such as BYD and CALB. According to energy market researcher SNE Research, from January to April this year, CATL's market share in the global market excluding China was 29.6%, leading the way, while LG Energy Solution (21.8%), SK On (10.1%), and Samsung SDI (7.8%) followed.
During the same period, the usage of batteries in China showed significant growth. CATL recorded a 36.0% increase, totaling 39.3 GWh; BYD experienced a 127.5% increase to 9.1 GWh; Guoxuan saw a 100% increase to 2.6 GWh; and CALB recorded a 47.1% increase to 2.5 GWh. These figures all exceeded the growth rates of LG Energy Solution (23.9%), SK On (10.3%), and Samsung SDI (11.1%).
Including the Chinese market, the rise of Chinese battery companies is even more pronounced. In the first quarter, CATL's global market share was 38.3%, which is double the combined share of Korea's three battery companies (18.7%). The combined market shares of CATL and BYD (16.7%), CALB (3.9%), Guoxuan (3.5%), EVE (2.6%), and SVOLT (2.5%) reached 67.5%.
The Chinese battery industry is accelerating its efforts not only on price but also on enhancing quality competitiveness, aided by government support. Chinese battery corporations are focusing on research and development (R&D) based on large subsidies and tax benefits provided by the government solely for domestically produced batteries. Next-generation batteries such as sodium-ion and solid-state batteries, as well as energy storage systems (ESS), are identified as key investment areas.
China plans to begin production of the so-called 'dream battery,' a solid-state battery, in 2027, followed by phased mass production starting in 2030. The development of sodium-ion batteries, which use abundant sodium instead of lithium to lower production expenses and enhance stability, is also gaining attention. In April, CATL introduced its sodium-ion battery brand 'Nexcel,' presenting December as its target for mass production.