Chinese battery giant CATL has unveiled its second-generation Naxtra sodium-ion batteries for electric vehicles (EVs) and plans to begin mass production in December, raising concerns among South Korea’s leading battery manufacturers. CATL’s move could intensify competition for firms such as LG Energy Solution, Samsung SDI and SK On, which continue to focus on nickel cobalt manganese (NCM) batteries.
Sodium-ion batteries offer advantages in cost and safety compared with NCM and lithium iron phosphate (LFP) chemistries. They also maintain solid energy density at very low temperatures, traits that appeal to automakers seeking affordable, reliable energy storage solutions. Chinese manufacturers have rapidly increased their share of the EV battery market by promoting lower-cost LFP packs over the past few years. According to data from market tracker SNE Research, LFP batteries accounted for just 10.4 percent of the global EV battery market in 2019 but rose to 34.4 percent in 2021 and 52 percent by the end of 2024.
Experts warn that CATL’s early entry into commercial sodium-ion production could erode South Korean firms’ market position. “Korean battery companies intend to develop their own sodium-ion products around 2030,” said Kim Pil-soo, an automotive technology professor at Daelim University College. “With Chinese rivals launching first, they risk losing more market share.”
Market data show the combined share of the three South Korean manufacturers fell to 16.4 percent in the first half of this year, down 5.4 percentage points from a year earlier. In 2021, they held more than 30 percent of the global EV battery market. By comparison, Chinese producers commanded 77.8 percent of the market during the same period.
Industry observers suggest South Korean firms must diversify their portfolios and accelerate research into next-generation chemistries to counter the growing influence of low-cost competitors. “Even automakers long aligned with Korean NCM batteries are exploring Chinese alternatives for price and adequate performance,” said one auto industry official. “A strategic overhaul is essential if Korean battery makers want to remain competitive internationally.”
Source: The Korea Times
