Battery material to be led by China… ‘Suzerain’ Korea less than 10%
Park Jung Il | comja77@ | 2017-11-23 10:01:11
It is found that main core parts and materials such as cathode materials, anode materials, electrolytes, and separators are being pushed to China and Japan in Korea, which is considered as a lithium-ion battery powerhouse. As the demand for new lithium-ion batteries, such as electric cars, is increasing, competition is worsening, and if the competitiveness of parts and materials is not secured, there is growing concern that battery-consuming countries will become "rootless trees."
According to Japanese market researcher Yano Economy Research Institute on November 22, Korea`s market share in the four major component materials markets of lithium ion batteries has fallen sharply compared with China and Japan.
In terms of major components, Korea`s market share last year was 8.3%, based on the quantity of cathode materials. In 2014, its market share, which was 11%, fell 3.3 percentage points in two years. On the contrary, China`s market share increased sharply from 53.3% to 67.7%. Japan dropped from 25% to 13.6%, but its market share was higher than Korea.
Korea`s market share of electrolytic water also fell from 6.8% in 2014 to 4.5% last year. China and Japan accounted for 75% and 20.6%, respectively. SK Innovation, the world`s second-largest maker, held a double-digit market share of 10.5%. But this is also a 1.4 percentage point drop from 11.9% in 2014.
The anode material market share rose from 1.9% in 2014 to 3.0% last year, but there is little presence in the market. Yano Economic Research Institute said, "SK Innovation has started supplying to CATL, a Chinese battery maker, since late last year, but other parts are mainly supplied by Chinese companies."
In fact, major domestic battery makers such as Samsung SDI and LG Chem are known to procure considerable quantities of parts and materials from foreign countries. According to statistics of various market research companies, market share of domestic battery finished products such as Samsung SDI and LG Chem is about 40% in small size and 30% in middle size and large size, so there is no way to procure materials in Korea.
An expert of the battery industry pointed out, "Although developing parts and materials, it is better for profitability to procure from outside than own production." Also, there are few raw materials such as scarce metals in Korea, and overseas parts are cheaper. As a result, domestic battery parts and materials makers that show their presence in the global market are only a few, including SK Innovation, Ecoprobi, and L & F.
Meanwhile, the battery industry is politically motivated by the need to nurture world-class parts and materials companies to prepare for a future resource war. An industry observer said, "The domestic petrochemical industry is competitive in Korea due to its ability to refine the world`s best refining capacity." The battery parts material also needs to be competitive with process innovation and new material development. "He said.
Meanwhile, the Yano Economic Research Institute said last year that the size of the world`s 4 parts lithium-ion battery materials market increased 140.1% year-on-year to 9,877.45 million dollars, and this year it reached 13 billion dollars (about 14.2 trillion won) Scale.
By Park Jung Il comja77@
[ copyright ⓒ The Digitaltimes ]
According to Japanese market researcher Yano Economy Research Institute on November 22, Korea`s market share in the four major component materials markets of lithium ion batteries has fallen sharply compared with China and Japan.
In terms of major components, Korea`s market share last year was 8.3%, based on the quantity of cathode materials. In 2014, its market share, which was 11%, fell 3.3 percentage points in two years. On the contrary, China`s market share increased sharply from 53.3% to 67.7%. Japan dropped from 25% to 13.6%, but its market share was higher than Korea.
Korea`s market share of electrolytic water also fell from 6.8% in 2014 to 4.5% last year. China and Japan accounted for 75% and 20.6%, respectively. SK Innovation, the world`s second-largest maker, held a double-digit market share of 10.5%. But this is also a 1.4 percentage point drop from 11.9% in 2014.
The anode material market share rose from 1.9% in 2014 to 3.0% last year, but there is little presence in the market. Yano Economic Research Institute said, "SK Innovation has started supplying to CATL, a Chinese battery maker, since late last year, but other parts are mainly supplied by Chinese companies."
In fact, major domestic battery makers such as Samsung SDI and LG Chem are known to procure considerable quantities of parts and materials from foreign countries. According to statistics of various market research companies, market share of domestic battery finished products such as Samsung SDI and LG Chem is about 40% in small size and 30% in middle size and large size, so there is no way to procure materials in Korea.
An expert of the battery industry pointed out, "Although developing parts and materials, it is better for profitability to procure from outside than own production." Also, there are few raw materials such as scarce metals in Korea, and overseas parts are cheaper. As a result, domestic battery parts and materials makers that show their presence in the global market are only a few, including SK Innovation, Ecoprobi, and L & F.
Meanwhile, the battery industry is politically motivated by the need to nurture world-class parts and materials companies to prepare for a future resource war. An industry observer said, "The domestic petrochemical industry is competitive in Korea due to its ability to refine the world`s best refining capacity." The battery parts material also needs to be competitive with process innovation and new material development. "He said.
Meanwhile, the Yano Economic Research Institute said last year that the size of the world`s 4 parts lithium-ion battery materials market increased 140.1% year-on-year to 9,877.45 million dollars, and this year it reached 13 billion dollars (about 14.2 trillion won) Scale.
By Park Jung Il comja77@