Kia set for domestic EV launch using China's CATL batteries

Kia plans to launch its midsize electric SUV, the EV5, in South Korea by the end of 2025.

The vehicle will feature nickel-cobalt-manganese (NCM) batteries supplied by China’s CATL, according to industry sources.

Production of the EV5 will start in the second half of the year at Kia’s Gwangju plant.

This model differs from the EV5 launched in China last year, which used BYD’s lithium iron phosphate (LFP) batteries known for cost efficiency.

The NCM batteries selected for the domestic market offer higher energy density and improved performance.

🔗 Source: The Korea Times

🧠 Food for thought

1️⃣ Korean battery makers face rapid market share erosion amid Chinese expansion

The decline in Kia’s decision to use CATL batteries for the EV5 reflects a broader trend of eroding Korean dominance in the battery sector.

Korean manufacturers have seen their global EV battery market share drop to just 18.7% in Q1 2025, a significant decline from 23.2% the previous year, while Chinese manufacturers surged to control 67.5% of the market 1.

This shift represents a dramatic reversal from Korea’s previously strong position, with CATL alone capturing 40.2% year-on-year growth to 84.9 GWh of installations, demonstrating the scale of Chinese manufacturers’ expansion 2.

The competitive landscape has fundamentally changed as Chinese battery makers have leveraged government support and lower production costs to undercut Korean rivals, particularly in price-sensitive market segments 3.

Even Korea’s flagship battery manufacturer, LG Energy Solution, despite maintaining third place globally with a 14.1% market share, is struggling to match the momentum of Chinese competitors 1.

2️⃣ Automakers’ strategic shift from using Chinese batteries only in small vehicles to deploying them in flagship models

Kia’s decision to use CATL’s NCM batteries in the midsize EV5 SUV marks a significant strategy shift, as Korean automakers previously restricted Chinese batteries to smaller, lower-margin vehicles.

This transition from using Chinese batteries exclusively in models like the Niro EV and Ray EV to implementing them in larger vehicles signals growing confidence in Chinese battery technology and economics 4.