The annual investment of the three major battery companies in South Korea has doubled, exceeding 16 trillion won
Nov 20,2023
Despite the recent global economic downturn and reduced subsidies from various countries leading to a slowdown in demand for electric vehicles, the cumulative investment of the three major battery manufacturers in South Korea (LG New Energy, SK On, Samsung SDI) in 2023 has been confirmed to have doubled compared to last year, breaking the 16 trillion won (approximately 89.28 billion yuan) mark.
According to industry sources on November 19th, the cumulative investment of the three major battery companies in South Korea and overseas markets in the first to third quarters of this year reached 16.75 trillion won, more than double the 816 trillion won in the same period last year. Among them, LG New Energy ranks first with an investment of 7.65 trillion Korean won; SK On has the largest growth rate, with an investment amount of 6.6 trillion won; Samsung SDI ranks third, with an increase of 45.4% in investment, most of which is used for domestic and international facility installation and production line growth in South Korea.
According to industry insiders' analysis, the three major battery companies in South Korea have increased their investment this year, partly due to the temporary sluggish demand for electric vehicles, but the long-term growth trend remains unchanged. According to market research firm SNE Research, the growth rate of electric vehicles in 2023 has decreased compared to 2022, expected to be 30.6%, 5.8% lower than previous forecasts.
For Korean manufacturers, Chinese battery manufacturers are leading in the field of lithium iron phosphate (LFP) batteries, occupying a high share in the global market with their high cost-effectiveness. In 2023, Korean manufacturers also increased their investment in the field of lithium iron phosphate batteries and officially decided to enter the market.
LG New Energy stated that it will mass produce LFP batteries in 2026. SK On has completed the development of such batteries and is currently discussing supply matters with a company. It has decided to invest 1.5 trillion Korean won to build a battery factory in South Korea, with the goal of achieving a production capacity target of 14GWh by 2025. Samsung SDI has disclosed its current plan to develop LFP materials until 2026 and is considering the construction of production facilities.
According to industry sources on November 19th, the cumulative investment of the three major battery companies in South Korea and overseas markets in the first to third quarters of this year reached 16.75 trillion won, more than double the 816 trillion won in the same period last year. Among them, LG New Energy ranks first with an investment of 7.65 trillion Korean won; SK On has the largest growth rate, with an investment amount of 6.6 trillion won; Samsung SDI ranks third, with an increase of 45.4% in investment, most of which is used for domestic and international facility installation and production line growth in South Korea.
According to industry insiders' analysis, the three major battery companies in South Korea have increased their investment this year, partly due to the temporary sluggish demand for electric vehicles, but the long-term growth trend remains unchanged. According to market research firm SNE Research, the growth rate of electric vehicles in 2023 has decreased compared to 2022, expected to be 30.6%, 5.8% lower than previous forecasts.
For Korean manufacturers, Chinese battery manufacturers are leading in the field of lithium iron phosphate (LFP) batteries, occupying a high share in the global market with their high cost-effectiveness. In 2023, Korean manufacturers also increased their investment in the field of lithium iron phosphate batteries and officially decided to enter the market.
LG New Energy stated that it will mass produce LFP batteries in 2026. SK On has completed the development of such batteries and is currently discussing supply matters with a company. It has decided to invest 1.5 trillion Korean won to build a battery factory in South Korea, with the goal of achieving a production capacity target of 14GWh by 2025. Samsung SDI has disclosed its current plan to develop LFP materials until 2026 and is considering the construction of production facilities.