The vigorous development of the global new energy vehicle industry has led to the rapid growth of the power battery market. According to the latest data from SNE Research, from January to May 2024, the total installed capacity of global power batteries increased by 23% year-on-year to 285.4GWh. In this global competition for power batteries, Chinese companies CATL and BYD are particularly prominent, while South Korean companies are also actively responding to market changes and showing their competitiveness.
The leading position of Chinese enterprises in the market
The leading position of Chinese enterprises in the power battery market is due to technological innovation and market strategy. CATL topped the list with 107GWh of installed capacity and 37.5% market share, with a growth rate of 31.1%. BYD followed with an installed capacity of 44.9GWh, a market share of 15.7%, and a growth rate of 21.1%. The strong performance of these two companies not only reflects China's technological strength in the field of power batteries, but also reflects its important position in the global supply chain.
Figure: CATL and BYD lead the global power battery
Market performance and challenges of Korean companies
South Korean companies have a place in the global power battery market, but they also face certain challenges. LG Energy Solution, SK on and Samsung SDI have market shares of 12.6%, 4.9% and 4.8%, respectively, and although Samsung SDI has a growth rate of 26.8%, the overall Korean power battery global market share is 22.3% year-on-year. This change indicates that the competitiveness of Korean companies in the global market has declined, and further adjustment of strategies is needed to adapt to market changes.
The selection of technical routes and market competition
The choice of technical route has an important impact on the market performance of enterprises. Chinese companies mainly deploy lithium iron phosphate batteries, benefiting from their cost-effectiveness and safety, while South Korean companies have long been committed to the research and development of ternary lithium batteries. With the growth of global demand for electric vehicles, especially the dual requirements of cost-effectiveness and range, lithium iron phosphate batteries are gradually favored by the market.
Global Market Trends & Corporate Strategy
The future trend of the global power battery market shows that with the continuous growth of demand for new energy vehicles, the demand for power batteries is expected to rise further. Businesses need to constantly innovate and adjust their strategies to meet the needs of the future market. For example, while opening up lithium iron phosphate battery production lines, Korean companies are also continuing to invest in high-end product research and development in order to remain competitive in the market.
Summary
The competition between Chinese and South Korean power battery companies in the global market is intensifying. The leading position of CATL and BYD shows the strong competitiveness of Chinese companies in the global power battery market, while South Korean companies need to explore more in technological innovation and market strategies. With the ever-changing market and the rapid development of technology, companies must be agile in order to maintain their competitiveness in the global marketplace.
