Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Chinese price-competitive sodium-ion batteries pose threat to Samsung, LG
Visitors look at an electric vehicle (EV) powertrain with batteries at the CATL booth at IAA Mobility 2025 in Munich, Sept. 8. EPA-Yonhap
By Lee Min-hyung
Korean battery firms feared to lose more market share amid limited portfolio
CATL, a Chinese battery manufacturer and technology company, is commercializing sodium-ion batteries — a move that poses an increasing threat to Korean battery firms, which still rely on sales of less price-competitive nickel cobalt manganese (NCM) batteries, experts and industry officials said Thursday.
The Chinese firm recently unveiled its second-generation Naxtra sodium-ion batteries for electric vehicles (EVs), and shared its plan to start its mass production in December this year.
Sodium-ion batteries offer several major advantages over nickel cobalt manganese (NCM) and lithium iron phosphate (LFP) batteries, particularly in terms of cost and proven safety against fire risks. They also maintain strong energy density even in extremely low temperatures.
The latest move by the Chinese battery giant puts particular pressure on LG Energy Solution, Samsung SDI and SK On, as their research and development of sodium-ion batteries is still in its early stages.
Chinese battery firms have rapidly expanded their market share with cheaper LFP batteries in recent years. LFP batteries are expanding their presence, outpacing NCM batteries in the global EV market.
According to data from SNE Research, a market tracker, LFP batteries held a 10.4 percent market share in 2019, but have since seen rapid growth. LFP batteries made up 34.4 percent of the global EV market in 2021, rising to 52 percent by the end of 2024.
The logo of LG Energy Solution is seen at its office building in Seoul in this undated file photo. Reuters-Yonhap
Experts warn that Korean battery firms could face heightened risks of losing global market share, following CATL’s plans to begin mass-producing sodium-ion batteries.
“Korean battery firms have plans to develop their own sodium-ion batteries around 2030, which means Chinese rivals will be able to steal more market share away from their Korean counterparts with the earlier launch of the new batteries,” said Kim Pil-soo, an automotive technology professor at Daelim University College.
Sodium-ion batteries have some other advantages, as they can be charged stably even in low temperatures, he said.
“On top of that, they have a strong price edge against NCM batteries, so Chinese firms will be able to further increase their global market share, as Korean firms still focus on sales of NCM batteries,” he said.
Additional data from the market tracker showed that the combined global market share of the three Korean battery firms mentioned is in sharp decline. Their combined share in the first half of this year fell to 16.4 percent, down 5.4 percentage points from a year earlier. In 2021, they accounted for more than 30 percent of the global EV battery market.
In contrast, Chinese battery firms held a commanding 77.8 percent share of the market during the same period.
Industry officials said Korean battery firms need to overhaul their strategy to counter the mounting threat from Chinese rivals.
“Even if Korean battery firms have been recognized with their quality NCM batteries, this may not be the case anymore, as more carmakers, including Hyundai Motor, are moving to adopt Chinese NCM batteries due to their price edge and decent quality,” an auto industry official said.