In a significant shift within the global battery industry, Chinese manufacturers substantially increased their market dominance in 2024. (Image courtesy of Yonhap)
SEOUL, Feb. 25 (Korea Bizwire) — In a significant shift within the global battery industry, Chinese manufacturers substantially increased their market dominance in 2024, while South Korean competitors saw their share shrink in both electric vehicle and energy storage markets.
According to data released by SNE Research on February 24, global battery shipments reached 1,460 gigawatt-hours (GWh) last year, with 1,157 GWh dedicated to electric vehicles and 303 GWh to energy storage systems (ESS).
The three major Korean battery makers — LG Energy Solution, Samsung SDI, and SK On — maintained positions within the top 10 manufacturers but experienced a marked decline in their collective market share, dropping from 24% in 2023 to 14% in 2024. LG Energy Solution ranked third with a 9% share of the market, while Samsung SDI and SK On held the eighth and ninth positions with 3% and 2%, respectively.
Chinese manufacturers, led by CATL, strengthened their grip on the market. CATL maintained its leadership position with dominant shipment volumes in both the electric vehicle and ESS sectors. Other Chinese companies, including BYD (second place), CALB (fourth), and EVE (fifth), continued their rapid expansion and accelerated their push into North American and European markets.
The combined market share of the six Chinese companies in the top 10 — CATL, BYD, CALB, EVE, Gotion, and Sunwoda — surged from 63% in 2023 to 74% in 2024.
SNE Research attributed this market transformation to the rapid adoption of lithium iron phosphate (LFP) batteries, which offer competitive pricing and superior thermal stability. While Chinese manufacturers have long focused on LFP technology, Korean companies have primarily developed nickel-cobalt-manganese (NCM) batteries.
The Korean manufacturers are now racing to catch up. LG Energy Solution plans to begin LFP battery production in the second half of 2025 for Renault’s next-generation electric vehicles and will launch an ESS-focused LFP line in the United States by year-end. Samsung SDI and SK On are also developing LFP products, targeting production in 2026.
“The market ultimately demands cheaper batteries, and Chinese companies continue their technological development and negotiation efforts,” said An Hoesoo, an analyst at DB Financial Investment. “Companies preparing to join the LFP value chain will have an advantage in this long-term competition, as both cost and technological superiority are fundamental market principles.”
The Korean manufacturers are developing LFMP (lithium iron manganese phosphate) batteries, which add manganese to improve energy density, as they seek to close the technological gap with their Chinese rivals.
Kevin Lee (kevinlee@koreabizwire.com)
