Chinese battery giants ramp up expansion in Korea

A CATL sign stands outside its research and development hub and the Chinese battery maker's headquarters in Ningde, China, in November 2024. Reuters-Yonhap

Competition is heating up in the domestic battery industry as CATL has joined its Chinese peers in expanding its presence in the Korean market.

The world's leading electric vehicle (EV) battery maker by market share recently began recruiting energy storage system (ESS) sales managers, corporate counsels and human resources generalists to work for its Korean subsidiary, CATL Korea.

Since its establishment in January, CATL Korea has been led by a 36-year-old Chinese national, Han Xinjun, and a 59-year-old Australian co-CEO, John Hyuk-joon Kwon, who previously served as general counsel for the battery maker.

The opening of the Korean subsidiary and its recruitment drive followed CATL's confirmation last September that it would establish a local unit "in the near future." Prior to that, the Chinese firm operated an office in Seoul.

The subsidiary is specifically seeking applicants for the corporate counsel role to "assist on the ramp up of ESS business for Korea."

Given that CATL is reportedly considering launching a sales subsidiary in South Chungcheong Province — home to manufacturing facilities of major Korean battery companies — it is also expected to pursue domestic production in the future.

"There's a possibility that CATL will try to sell its EV batteries to Korean carmakers in order to counter U.S. trade barriers against China," a battery industry official said.

Liu Xueliang, general manager of BYD's Asia Pacific auto sales division, speaks during the Seoul Mobility Show at KINTEX in Goyang, Gyeonggi Province, April 3. Yonhap

China's BYD, which holds the second-largest share in the global EV battery market, has also shown interest in expanding in Korea. The company participated in the InterBattery exhibition in Seoul last month, following the launch of its EVs in Korea in January.

Although BYD only displayed batteries for consumer electronics and motorcycles, Liu Xueliang, general manager of BYD's Asia Pacific auto sales division, promoted its lithium iron phosphate (LFP) batteries during the Seoul Mobility Show this month, noting that the products can be recycled for ESS use.

Amid intensifying global trade tensions following the inauguration of U.S. President Donald Trump, battery industry officials expect further expansion of Chinese firms in Korea.

At the same time, more Korean battery makers have delayed or canceled joint ventures with their Chinese partners, as Trump is expected to tighten regulations on foreign entities of concern outlined in the U.S. Inflation Reduction Act, enacted during the presidency of his predecessor, Joe Biden.