LG Energy Solution has also lost a few customers because of battery reliability.
The South Korean tech majors LG Energy Solutions, Samsung SDI and SK Innovation are dominating the global EV battery supply. They supplied a combined 47.8 GWh of EV batteries between the January and March period representing a growth of 127 per cent from a year earlier based on the data shared by SNE Research.
The demand for EV batteries has risen exponentially but this also meant the combined share decreased by 37.8 per cent as some Chinese manufacturers also expanded their supply and presence in their home market which has now become the world’s biggest market for EVs.
LG energy solutions supplies batteries to Tesla, Volkswagen, Ford managed to be globally the second largest supplier with a 20.5 per cent market share behind Chinese CATL which has a 31.5 per cent market share.
Samsung SDI and SK Innovation have to catch up to LG and CATL in this regard. They both had a 5.2 per cent market share globally placed 5th and 6th respectively.
“With EV battery technology undergoing swift changes and rising competition underway, the Korean battery makers seem to be backing out due to Chinese players,” SNE Research said in a report.
“With CATL at the head, Chinese battery makers are eating up the global market at an alarming rate and will likely trigger fiercer competition in the EV battery market in the near future,” the report added.
In addition to this, LG Energy Solution has also lost a few customers because of battery reliability. Notably, Hyundai has been forced to recall many EVs which have been based on LG’s batteries. As a result of this LG lost Hyundai as a customer.