Automakers Seek Korean Batteries Despite China's Low-Price Push... High-Performance Market Remains a Bulwark

BMW Partners with Samsung SDI and LG Energy Solution
Global Automakers Focus on Local Production and Battery Performance
Securing Supply Opportunities in the High-Performance EV Segment

Chinese battery makers are rapidly taking over the global electric vehicle market by leveraging their price competitiveness, but automakers continue to demand batteries from South Korean companies as well. As Chinese manufacturers expand their market share on the strength of their overwhelming production scale and cost competitiveness, South Korean companies are seeking to differentiate themselves with technology suited to high-performance electric vehicles and a local production base.

According to the automotive industry on November 11, BMW recently selected Samsung SDI to supply next-generation high-voltage battery cells for vehicles produced in Europe and LG Energy Solution for vehicles produced in the United States. Deliveries are scheduled to begin in the late 2020s. The selection of South Korean companies as suppliers of batteries for next-generation electric vehicles by a global automaker is considered a significant achievement for the country’s battery industry.

High-voltage battery cell manufacturing process. BMW Group

Production locations are also reported to have influenced the selections, in addition to battery performance. Analysts say the ability to reliably source locally produced batteries in major markets such as Europe and the United States was an important consideration for the automaker. As industrial policies in various countries, including electric vehicle subsidies and tariffs, increasingly affect supply chains, battery makers’ ability to produce locally has become another pillar of their competitiveness.

Chinese battery makers already hold a substantial share of the market. Global electric vehicle battery usage reached 994.5 GWh in the first nine months of this year, up 19.7% from the same period a year earlier. CATL ranked first with 389.2 GWh and a 39.1% market share. The combined share of seven Chinese battery makers reached 73.0%. By contrast, the three South Korean battery makers had a combined share of 12.6%, down 4.1 percentage points from the same period a year earlier.

Chinese companies are also gaining influence in markets outside China. In the first nine months of this year, their combined share of markets outside China stood at 56.4%. During the same period, the three South Korean battery makers’ share fell to 26.5%, down significantly from 38.2% a year earlier. This indicates that Chinese companies’ price competitiveness is proving effective not only in their domestic market but also in global markets such as Europe and North America.

Pierre Millet, chief technology officer (CTO) of the European Automobile Manufacturers’ Association (ACEA), said at the 2026 Korea Automobile Importers & Distributors Association (KAIDA) Automotive Policy Seminar on November 9, “Chinese battery and electric vehicle manufacturers have grown into formidable competitors with their own competitive strengths.” He added, “Their strength lies in being able to offer electric vehicles with strong performance at reasonable prices.”

BMW i7. BMW Korea

Despite this, South Korean battery makers are still considered to have a strong position in the high-performance electric vehicle market. A Polestar representative, explaining the reasons for choosing a South Korean battery maker, said, “Although their products are more expensive than those from Chinese companies such as CATL, domestically made batteries play a significant role in high-performance electric vehicles.” The point is that battery performance, including output and stability, is an important consideration for vehicle models whose suppliers cannot be selected on price alone.

Samsung SDI batteries are used in the Rolls-Royce Spectre and are also installed in the BMW i5 and i7. Polestar’s high-performance electric vehicle, the Polestar 5, is equipped with batteries from SK On. While Chinese companies are expanding their supply reach with electric vehicles across a range of price points, South Korean manufacturers are securing supply opportunities in the high-performance and luxury electric vehicle markets on the strength of their technological competitiveness.

The joint venture battery plant in North America established by Hyundai Motor Group and SK On is another example of the South Korean battery industry’s response strategy. The two companies established a battery plant in Georgia with an annual capacity of 35 GWh, and initial production began in June this year. The battery cells produced there will be supplied to Hyundai, Kia, and Genesis electric vehicles made in North America. The strategy is to strengthen their ability to serve the North American market by linking vehicle production sites with battery supply chains locally.

Industry observers say it will be difficult to close the gap through price competition with Chinese manufacturers alone, and that high-performance battery technology and local production capacity must be strengthened together. An industry official said, “To turn automakers’ demand for supply chain diversification into an opportunity for South Korean battery companies, it is important to establish not only technological competitiveness but also a system capable of reliably producing and supplying batteries in major markets.”

This content was produced with the assistance of AI translation services.