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.
“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.
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.
“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.
Source: The Korea Times
