On February 9, South Korea's ** "Asian Economy" published an article saying that some analysts believe that Chinese battery companies not only have technical competitiveness in the field of lithium iron phosphate (LFP) batteries, but also in ternary batteries (NCM, NCA, etc.), where Korean companies have advantages, and are rapidly catching up with South Korean companies. It has been pointed out that in order for Korean battery companies to remain globally competitive, they must master super-gap technology.
Recently, Choi Jae-hee, a professional researcher in the China group of the Korea Institute of International Economic Policy, said: "China is actively promoting research and development in the field of ternary systems, and the number of relevant patent applications has surpassed that of South Korea and Japan. ”
In fact, in 2021, China has applied for 4,178 NCM battery patents, far exceeding South Korea's 246, the United States' 273 and Japan's 435. In terms of the number of patent applications for next-generation batteries in various countries, the number of patents filed by the China Intellectual Property Office in 2021 was as high as 9,625, while the Korean Intellectual Property Office only had 204. The JPO received 310 and the USPO 1,544.
Affected by the Inflation Reduction Act, the threshold for Chinese batteries to enter the United States is very high, while in Europe, Chinese companies have expanded their position not only in the field of LFP, but also in the field of ternary batteries. From January to July 2023, the share of Chinese companies in the European EV battery market was 401%, up from 34% in the previous year. While South Korea's share in the same period increased from 635% to 57%.
The data shows that especially in the field of high-nickel batteries in the European market, China's share is 45%, closely behind South Korea (55%). Among the ternary batteries sold by CATL in the European market, high nickel (NCM811) accounts for 57%, leading medium nickel such as NCM523 (34%) and NCM622 (9%). Researcher Choi Jae-hee analyzed: "Excluding high-end products such as NCM9, China's technical level is almost the same as that of South Korea. ”
The speed at which Chinese companies are entering overseas markets coincides with the surplus phenomenon in the domestic battery market. Researcher Choi Jae-hee said: "Due to the surplus in the Chinese market, Chinese battery companies have accelerated their entry into overseas markets, and the competition between South Korean and Chinese companies in the global market has intensified.
Chinese companies are particularly interested in the European market. There are no discriminatory rules in Europe on investments in offshore companies, including China, and Chinese companies are more accessible than in the United States. Hungary and other EU member states are actively introducing foreign enterprises. It is understood that the capacity construction plan of Chinese companies in Europe exceeds 300GWh.
Researcher Choi Jae-hee pointed out, "Chinese companies are not only in the low-cost LFP market, but also in the high-nickel market, and Korean companies should not take it lightly. He suggested that South Korean companies ensure LFP-related technology and talents in the short term, expand investment in upstream fields in the long term, and reduce dependence on China through the stability of the ** chain.
February** Dynamic Incentive Program