South Korea Electric Vehicle (EV) Battery Market Overview, 2027

Electric vehicle batteries are secondary rechargeable batteries that are used in supplying power to the propulsion systems of an EV. These batteries constitute an important part or component of an electric vehicle. EV batteries are device types that store energy in the form of chemical energy and, during functioning, convert that into electrical energy. These EV batteries undergo numerous discharge cycles during driving, and they are charged when the vehicle is plugged in. This process is repeated many times, which affects the life of the battery gradually over the years. This decreases the range and time needed between each journey to charge. The use of batteries in EVs is considered more than an opportunity in order to restrict the CO2 and NO2 emissions from conventional ICE vehicles in a world that is constantly fighting the enemy of climate change. Due to this, the manufacturing capabilities are being scaled up for the production of batteries, which offers significant value creation opportunities for producers and, directly and indirectly, will drive national growth. The biggest opportunity for EV battery markets may be in the European and North American regions, but surprisingly, due to immature markets currently, the value chain is well established in China, the world’s biggest market for EVs, and South Korea. The majority of the world production is accounted for by the three giant players operating in the South Korean market, which are LG Energy, SK Innovation, and Samsung SDI for EV batteries. Many of the world’s major automotive players are dependent on these companies for EV batteries. According to the report titled "South Korea Electric Vehicle Battery Market Overview, 2027", published by Bonafide research, the South Korean market for EV batteries is forecasted to grow with an average CAGR of more than 24% during the predicted period. The EV battery market is divided into three segments based on bifurcation by battery types. Lithium-ion batteries have a significant and majority market share among all the other battery types, which is due to the following properties: Lithium is the lightest of all metals, but Lithium-ion batteries contain its ions and not metals. Lithium-ion batteries possess high energy density, a long life cycle, and they are light in weight, which has led to their increased use in EVs. After the complete discharge and usage of these batteries, they are either disposed of or recycled to recover the important components and materials that can again be used in the production of these batteries. Moreover, after their usage in EVs, they can be used as energy storage systems for homes. This all leads to the development of a circular value chain for these batteries, which is a major advantage over their vast adoption in EVs. NMC and its derivatives are widely used in the electrification of transport, one of the main technologies (combined with renewable energy) for reducing greenhouse gas emissions from vehicles. Lead-acid battery use has decreased considerably over the years due to other better options available with better specifications. Other types include solid-state batteries, sodium ion batteries, and nickel metal hydride batteries. The use of solid-state batteries is also increasing due to the range of anxiety issues that are developed by Li-ion batteries. They can be widely used in BEVs in upcoming years as they are safe and have higher energy densities. Also, as the cell gets reduced in size, it can lead to lightweight vehicles, and moreover, they are expected to bring down the cost per kilowatt hour, though higher than Li-ion batteries, which can lead to their high adoption rate in EVs. But as acquisition costs of EVs are higher, the higher cost of these in comparison to Li-ion ones will lead to higher prices of EVs. Other challenges are energy and power density, durability, material costs, sensitivity and stability. Battery electric vehicles (BEVs) have the majority share among other vehicle types based on bifurcation by propulsion type. They are anticipated to increase at a higher rate during the forecast period as such vehicles have fewer maintenance costs owing to the relative simplicity and elegance of a battery electric motor system when compared with the frequent maintenance required for the operation of an internal combustion system. This type of vehicle does not produce tailpipe carbon emissions and provides an environmentally sustainable driving experience, which also drives the market growth of BEVs. Hybrid electric vehicles (HEVs) and Plug-in Hybrids (PHEVs) consist of ICE engines for better ranges and fuel efficiency, which leads to their growth in future years, but not as large as that of BEVs because they act as a bridge for the transition process from ICE vehicles to EVs. The market division based on vehicle types includes commercial and passenger vehicle types. The country's government has set a goal of increasing electric car stock to 200,000 by the end of 2020. 2012 to 2019, around 113,000 electric vehicles were sold in the country, and around 95,000 more electric vehicles have to be sold in the country to reach the target by 2020. Out of the 95,000 electric vehicles, 65,000 will be passenger cars; 11,000 two-wheelers; 7,500 electric trucks; and 650 electric buses. Moreover, the country aims to sell 33% of all electric and hydrogen-based vehicles by 2030. This has led to the majority of the market share for passenger electric vehicles, while commercial vehicles are expected to grow at the highest CAGR rate among the division by vehicle types. The national and local governments offer tax incentives for battery electric vehicle purchasers, which combined can amount to around 4.2 billion won. In addition to the fiscal incentives, the government also offers various non-monetary benefits, such as permanent environment improvement charge exemption for zero-emission vehicles, exemption from congestion fees, special parking privileges for BEVs, lower electricity prices, and reduced public parking fees. Furthermore, the increasing government subsidies for the purchase of electric vehicles and the installation of charging infrastructure for such vehicles are some of the factors leading to an increase in the adoption of electric vehicles, which further leads to the growth in demand for an electric vehicle battery. To address the rising prices of raw materials, which are imported from China and other countries, Earthtech will be the first Korean company to enter the battery recycling business, and has recently started construction of a dedicated facility for dismantling electric vehicles and recycling used batteries. Further, mining companies like Posco are making many deals to remain a key supplier of raw materials to battery manufacturers in South Korea to reduce reliance on outside nations. The COVID-19 crisis led to disrupted supply chains, limited operations and workforce, and factory closures. This caused a severe decline in electric vehicle sales, which directly affected the sales of batteries, especially in the electric vehicle segment. While the coronavirus pandemic resulted in just 53.4GWH capacity from electric vehicle battery makers across the world, the South Korean battery makers actually increased their market share, revealed SNE research. The three largest South Korean companies, LG Chem, Samsung SDI, and SK Innovation, actually increased capacity, doubling their global market share to 35.6 percent between January and July 2020. This was a significant increase considering their previous market share of 15.9%. After COVID-19, their market share decreased, but the growth of EV battery markets continued to rise. Considered in the report. • Geography: South Korea • Historical year: 2016 • Base year: 2021 • Estimated year:2022 • Forecast year: 2027 Aspects covered in this report • South Korea electric vehicle battery market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Five force models. • Top-profiled companies • Strategic recommendation By Battery type in the report • Lithium-ion battery • Lead-acid battery • Others (Solid-state battery, Sodium-ion battery, Nickel metal hydride battery) By Propulsion Type in the Report • Battery Electric Vehicle (BEVs) • Plug-in Hybrid Electric Vehicles (PHEVs) • Hybrid Electric Vehicles (HEVs) By the vehicle type in the report. • Passenger Vehicle type • Commercial Vehicle type The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in it. The secondary research consists of third-party sources such as press releases and annual reports of companies, analyzing government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. After this, we have started making primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to electric vehicle battery industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.