SEOUL, Dec. 7 (Korea Bizwire) – South Korea’s leading chemicals and electric vehicle battery maker LG Chem Co. and its local rival Samsung SDI Co. have outpaced global players in terms of strategy and execution in the electric vehicle (EV) battery industry, a report showed Monday.
In a survey on eight EV battery manufacturers, LG Chem led the corporate assessment in the EV sector with a total score of 93.6, trailed by Panasonic Corp. of Japan with 90.2 and Samsung SDI with 87, according to the report by U.S. market tracker Navigant Research.
Global EV battery players are in severe competition to increase their presence and cut costs. Navigant said LG Chem is the top player as it can meet car manufacturers’ demands for “less room and high power.”
For years, LG Chem has clinched a series of deals to supply EV batteries to global automakers.
Recently, it inked a deal to supply Chery Automobile Co. of China with batteries for its next-generation EVs. It follows similar deals with other Chinese automakers — Changan Automobile Co., Great Wall Motor Co. and Dongfeng Motor Corp.
LG Chem is building a plant to produce EV batteries in China with an annual capacity of 100,000 units. It is scheduled to begin operations next year.
Earlier, LG Chem and Samsung SDI did well in a survey on the energy storage system (ESS) sector.
The ESS refers to the procedures that a large-scale battery uses to efficiently distribute power. For example, an ESS can save energy during the night and use it during the day, when demand for power is high.
South Korean firms have been tapping deeper into the segment as it is considered a new growth engine for the battery industry.