South Korean battery manufacturers saw their combined global market share fall in the first half of 2024, despite an increase in overall electric vehicle (EV) battery usage, according to SNE Research data.

Global battery usage in EVs, plug-in hybrids, and hybrids reached 504.4 gigawatt-hours from January to June, up 37.3% year-on-year.

The total market share for LG Energy Solution, SK On, and Samsung SDI dropped by 5.4 percentage points to 16.4% during this period.

LG Energy Solution remained the third-largest supplier globally with 47.2 GWh used and a 9.4% market share, while SK On ranked fifth at 19.6 GWh, or 3.9% of the market.

Samsung SDI’s usage declined by 8% to 16 GWh, reducing its share to 3.2%, attributed to weaker demand in Europe and North America.

China’s CATL maintained its leading position with 190.9 GWh and a 37.9% global share.

🔗 Source: Yonhap

🧠 Food for thought

1️⃣ Market growth doesn’t guarantee maintaining competitive position

South Korean battery makers are experiencing a classic business paradox, losing ground in an expanding market.

While global EV battery usage surged 37.3% to 504.4 GWh in the first half of 2024, the combined market share of LG Energy Solution, SK On, and Samsung SDI dropped to 16.4%, a 5.4 percentage point decline from the previous year [original article].

This trend has accelerated over time, with Korean firms’ combined share falling from 31.7% in 2021 to just 20.2% by late 2024 1.

The decline demonstrates how rapidly expanding markets can actually intensify competitive pressure rather than provide easy growth opportunities.

Chinese manufacturers, led by CATL with 37.9% market share, have captured the majority of this growth through aggressive pricing strategies and scaled production [original article].

2️⃣ Technology transitions can reshape entire industry hierarchies

The shift toward lithium iron phosphate (LFP) batteries has fundamentally altered competitive dynamics in ways that favor Chinese manufacturers.

Recent LG Energy Solution developments