The market share erosion comes as Chinese rivals, led by the world's largest EV battery maker CATL and automotive giant BYD, expanded their combined share to 53.6 percent from 39.7 percent during the same period, according to Korean energy market researcher SNE Research.
In response to shifting market dynamics, South Korean manufacturers are diversifying their product lineup to include prismatic batteries and LFP (lithium iron phosphate) batteries, technologies where Chinese companies have traditionally held advantages.
While Samsung SDI was the sole producer of prismatic batteries in Korea, LG Energy Solution announced a partnership with U.S. auto giant General Motors on Dec. 3 to develop prismatic batteries for GM's next-generation electric vehicles.
SK On is in discussions with multiple automakers about supplying its newly developed prismatic cells.
The Korean companies are also accelerating production of cost-competitive LFP batteries, which are about 30 percent cheaper than their traditional NCM (nickel-cobalt-manganese) counterparts, to meet growing demand for affordable electric vehicles.
"LFP batteries' price competitiveness and high thermal safety have begun to replace NCM batteries, leading to China's rapid market share growth," SNE Research said.
"As global automakers beyond Chinese manufacturers adopt LFP batteries, the three Korean companies are also rapidly preparing for LFP mass production," the firm added.
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