South Korea Battery Firms Risk Losing Global #2 Position to China

Milo McBride, a researcher at the Carnegie Endowment for International Peace, warned on 10日 that South Korean battery companies risk losing their global number-two position during a seminar titled 'Energy Security Risk and Battery Supply Chain Strengthening Strategy' held at the National Assembly Members' Hall in Seoul. McBride attributed the threat to China's overwhelming production volume and technological leadership in sodium-ion batteries. The warning comes as 2025 data shows Chinese firms capturing 80% of the global battery market, with non-China market share reversing from Korea's 44% lead in 2024 to China's 50% against Korea's 37% in 2025.

Chinese Firms Reverse Market Share Lead in Non-China Markets

Chinese battery manufacturers held 80% of the global battery market as of 2025, according to data presented at the seminar. In non-China markets specifically, Chinese firms captured 50% market share compared to South Korea's 37% in 2025. This represents a reversal from 2024 figures, when South Korean companies held 44% of non-China markets against China's 41%. McBride stated that Korea occupies the number-two position in battery technology but emphasized the risk of losing that status.

Carnegie Researcher Recommends Korea-OECD Cooperation Strategy

McBride emphasized that South Korea and Organization for Economic Cooperation and Development (OECD) member countries must collaborate to prevent falling behind China in competition. He cited cooperation between US and European startups with Korean battery firms as an example, noting that startups could achieve economies of scale while Korea secures intellectual property rights through such partnerships.

Sodium-Ion Batteries Projected to Achieve Cost Competitiveness

McBride highlighted the need to prepare for sodium-ion battery development. He stated, "Currently sodium-ion (batteries) are more expensive than lithium iron phosphate (LFP) batteries, but this cost is expected to eventually decrease significantly and become competitive with future lithium-ion." McBride added that "sodium-ion may actually be more promising when considering portfolio diversification." He recommended prioritizing sodium-ion batteries given "China's rapid commercialization and potential cost reductions, as well as the reduction in required minerals."

FAQ

What market share do Chinese battery firms hold in non-China markets as of 2025?

Chinese battery manufacturers captured 50% of non-China markets in 2025, compared to South Korea's 37%, according to data presented at the National Assembly seminar on 10日.

Why did Milo McBride recommend prioritizing sodium-ion battery development?

McBride stated that sodium-ion batteries warrant priority due to China's rapid commercialization, potential cost reductions, and reduced mineral requirements, noting they may become more cost-competitive than lithium-ion batteries.