South Korean and Chinese EV Battery Manufacturers Competing in Europe

SK Innovation battery plant in Hungary

South Korean electric vehicle (EV) battery manufacturers are increasing their investment in Europe as well as the United States.

LG Energy Solution expands its facilities in Poland at an investment of more than 6.7 trillion won from 2016 to 2025. In addition, it expands its facilities in Nanjing, China from 2018 to 2025 by investing 2.3 trillion won. The company is planning to increase its production capacity in Europe and China as well as the United States and South Korea in order to reach 260 GWh by 2023.

Samsung SDI invested 560 billion won in Hungary in 2019 to build more battery cell production lines. This year’s investment for the same purpose will be 940 billion won. SK Innovation is planning to build another EV battery plant with a capacity of 30 GWh in Iváncsa, Hungary.

Chinese EV battery manufacturers are increasing their facilities in Europe, too. CATL is building its first overseas plant in Erfurt, Germany, and it will be put into operation this year. Farasis is building a plant in Bitterfeld-Wolfen, Germany based on its strategic partnership with Mercedes-Benz.

CATL is strengthening its cooperation with European automakers, too. Daimler AG and CATL concluded a battery technology development agreement in August last year and the Mercedes-Benz EQS will debut with a CATL battery in the second half of this year.

According to market research firm SNE Research, CATL’s production capacity is expected to increase seven-fold to 990 GWh in the 2020s and that of LG Energy Solution is estimated to increase to 815 GWh in that period.