Korean battery firms are under threat from Chinese manufacturers like CATL, which is commercializing sodium-ion batteries for electric vehicles (EVs). CATL recently unveiled its second-generation Naxtra sodium-ion batteries and plans to start mass production in December.
Sodium-ion batteries have several advantages over traditional nickel cobalt manganese (NCM) and lithium iron phosphate (LFP) batteries, including lower cost and proven safety against fire risks. They maintain strong energy density even in extremely low temperatures.
The latest move puts pressure on LG Energy Solution, Samsung SDI, and SK On, as their research and development of sodium-ion batteries is still in its early stages.
Chinese battery firms have rapidly expanded their market share with cheaper LFP batteries, outpacing NCM batteries in the global EV market. Experts warn that Korean battery firms could face heightened risks of losing global market share following CATL’s plans to begin mass-producing sodium-ion batteries.
Industry officials say Korean battery firms need to overhaul their strategy to counter the mounting threat from Chinese rivals. Even if Korean firms have been recognized for their quality NCM batteries, carmakers are moving to adopt cheaper Chinese batteries due to their price edge and decent quality.
This move marks a significant challenge for Korean battery firms as they struggle to compete with Chinese manufacturers in terms of cost and technology.
Source: https://www.koreatimes.co.kr/business/companies/20250924/chinese-price-competitive-sodium-ion-batteries-pose-threat-to-samsung-lg