Korean battery material companies are forming partnerships with Chinese firms to expand their presence in the European market, as Chinese battery companies like CATL continue to grow rapidly in the region.
During its first quarter earnings conference call on April 29, EcoPro BM announced that it is engaging in discussions to supply CATL. An EcoPro BM representative stated that Chinese battery manufacturers such as CATL and AESC have established numerous production facilities in Europe, and EcoPro BM plans to closely monitor their future plans and respond accordingly.
EcoPro BM is developing a cathode material plant in Debrecen, Hungary, with an annual production capacity of up to 108,000 tons, expected to be operational in the second half of this year. This facility will support the production of batteries for approximately 1.35 million electric vehicles annually. The plant’s proximity, located just 3 kilometers from CATL’s Hungarian factory, offers logistical advantages. Additionally, Umicore’s restructuring efforts due to recent performance challenges may indirectly benefit EcoPro BM.
A battery industry official commented, “If the distance is close, logistics costs can be significantly reduced, so if performance tests are passed, the possibility of securing a supply contract is considerable,” adding, “If CATL becomes a customer, supply to other Chinese battery companies will likely proceed smoothly.”
Solus Advanced Materials also operates a copper foil plant in Hungary with a capacity of 38,000 tons. The company recently secured a mid to long-term supply contract with a Chinese battery firm based in Spain, and with ACC, a European EV battery company, positively impacting its operations. Solus Advanced Materials can provide customized copper foil for various customers and aims to expand its Hungarian production capacity to 100,000 tons by securing additional local customers.
The collaboration between Korean and Chinese battery companies is driven by the expanding influence of Chinese firms in Europe. Research from SNE Research indicates that as of January this year, the European market share of Korean battery companies LG Energy Solution, Samsung SDI, and SK On declined by 15.4 percentage points year-on-year to 35.6%, while Chinese companies like CATL, BYD, and CALB increased their market share by 13 percentage points to 56.3%. This shift reflects European automakers’ increased adoption of lower-cost batteries amid a temporary slowdown in EV demand.
Specifically, CATL’s European market share rose from 17% in 2021 to 38% in 2024, bolstered by partnerships with major automakers such as BMW, Mercedes-Benz, and Volkswagen. A battery industry official predicted that European expansion remains a primary growth avenue for Chinese battery companies due to limited access to the North American market. Furthermore, the bankruptcy of Europe’s rising battery company Northvolt may further strengthen Chinese batteries’ position in Europe.
Source: Business Korea
