South Korean battery makers eye gains from Europe’s China shift

Sept. 2 (Asia Today) — South Korean battery manufacturers could gain new opportunities in Europe as the European Union moves to reduce its dependence on Chinese batteries and critical raw materials and strengthen manufacturing within the bloc.

Industry officials said Wednesday that Europe’s restructuring of its supply chains could provide an opening for LG Energy Solution, Samsung SDI and SK On, all of which operate production facilities in Europe.

The European Union is pursuing measures including an Industrial Accelerator Act that would favor European-made and lower-carbon products in public procurement and subsidy programs.

It is also implementing its Critical Raw Materials Act, designed to increase mining, processing and recycling of strategic materials within Europe and reduce dependence on individual foreign suppliers.

Both policies are aimed in part at reducing Europe’s reliance on Chinese supply chains while strengthening domestic manufacturing.

That could create opportunities for South Korean battery companies with factories in Poland and Hungary.

The Korean companies, however, have lost substantial ground in the European battery market in recent years.

According to market researcher SNE Research, the combined European market share of South Korea’s three major battery manufacturers fell from 60.4% in 2023 to about 30% in 2025.

The share held by Chinese battery makers rose from the 20% range to about 60% over the same period.

The shift has been driven partly by intensifying price competition in Europe’s electric vehicle market.

Growing demand for lower-priced electric vehicles has increased use of lithium iron phosphate batteries, which are generally cheaper to manufacture and are a major strength of Chinese producers.

South Korean manufacturers have traditionally focused heavily on nickel-manganese-cobalt batteries, which provide higher energy density but generally have higher production costs.

LG Energy Solution, Samsung SDI and SK On are responding by broadening their product portfolios while taking advantage of their existing European manufacturing capacity.

They are expanding beyond high-performance batteries for premium electric vehicles to lower-cost lithium iron phosphate products and batteries for energy storage systems.

LG Energy Solution uses its plant in Wroclaw, Poland, as its main European manufacturing base and is expanding its product lineup to include lithium iron phosphate and mid-nickel batteries.

Samsung SDI supplies prismatic batteries to European automakers primarily from its plant in Göd, Hungary.

The company is maintaining its focus on high-energy-density premium products while diversifying into additional battery formats and expanding its energy storage business.

SK On operates plants in Komárom and Iváncsa, Hungary. The company is also expanding beyond high-energy-density products into prismatic and cylindrical battery formats.

An industry official said the ultimate benefit for Korean manufacturers would depend on how European regulators define product origin and other detailed implementation standards.

— Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260902010000966