The rechargeable battery war between Korea, China, and Japan is intensifying as the market for batteries for electric vehicles and energy storage devices (ESS) is rapidly expanding. Although Korean battery makers continue to dominate the rechargeable battery market, it is pointed out that a large-scale research and development (R & D) policy is in urgent need to go beyond the strategic alliance between Japanese companies and Chinese companies and pursuit of Chinese companies.

According to the rechargeable battery industry on March 18, Korean rechargeable battery companies, which had suffered from the elimination of electric vehicle subsidies applied by Chinese authorities last year, have succeeded in winning large-scale orders from this year.

According to market researcher SNE Research, the world market for lithium ion batteries for automobiles is expected to reach 254,019 MWh, an increase of more than four times from 20,525 MWh in 2005. As a result, the competition between Korea, China and Japan is accelerating. LG Chem (4th) and Samsung SDI (5th) total market share of 7.4% in 2016 and 12.1% in 2017, respectively. Korean rechargeable battery exports also rose 19.7 % year on year to USD 6 billion last year.

Korean companies` share of global market share is expected to continue this year. Volkswagen, a German automaker, recently announced that it has signed a battery supply contract worth 20 billion Euros (about 26 trillion won) with Samsung SDI, LG Chem and CATL to mass-produce electric vehicles. Volkswagen aims to sell 3 million cars a year by 2025. The consortium, which Samsung SDI and POSCO have built, was recently selected as the final operator of the Lithium Project organized by the Chilean Production Promotion Agency (CORFO). In Chile, Lithium was selected as a producer of cathode materials for batteries.

In the case of ESS sector, domestic companies have emerged as global players. "LG Chem and Samsung SDI have a share of over 60% in terms of supply, and in terms of demand, Korea has more than doubled this year," said Kim Ji-san, a researcher at Kiwi Securities. It is expected to account for 30% of the world market. "

However, the Korea Institute of Energy Research (KIET) reported that the lithium-ion battery, which has been leading the growth of Korea in its report on the status and development of domestic secondary battery industry, has reached its limits in terms of performance improvement, capacity increase and safety within the next 5-10 years, Solid-state batteries are expected to emerge as "game changers" in the global battery market.

Japanese companies are developing sulfide-based solid-state batteries by expanding strategic alliances and developing large-scale industry-university cooperation. "We also need a large-scale next-generation battery R & D project in the form of a mega consortium," said a researcher at the Dae-jung Industry Research Institute. We need to have an R & D system that everyone can participate in, so we can catch up with Japan."

The report points out that although the domestic battery material industry is actively investing in China, it is threatening to come back to the boomerang by significantly accelerating Chinese technology chasing. Domestic companies jointly built cathode production lines or joint ventures with Chinese companies for three years from 2015 to 2017.

According to the report, "The Chinese government is actively encouraging joint ventures because it can overcome the limitations of low-tech enterprises in China in a short period of time," he said. "Korea and China should make a strategic approach to maintain the technology gap as much as possible" did.


By Ye Jin Soo jinye@


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