How is the Lithium Ion Cell and Battery Market Positioned in South Korea?
The South Korea lithium ion cell and battery market is currently in its early growth stage. The market started out in South Korea in the late 1900s. Most companies in the market were established during this time. The need of rechargeable batteries arose because these were required for several applications including consumer electronics and electric vehicles where rapid evolution and technological advancement was occurring. Lead acid batteries were initially used for these purposes but they have started to get gradually replaced by lithium ion batteries.
Market Size and Growth: South Korea Lithium-ion cell and battery market size in terms of sales revenue increased from KRW ~ billion in 2012 to KRW ~ billion. The market registered a double digit positive growth rate of ~%.
Growth Drivers: The primary growth drivers for the lithium ion cell and battery market in South Korea are growth in end user application areas such as Consumer Electronics, ESS and EV sectors.
Growth Restraints: One of the challenges for the lithium ion cell and battery market in South Korea is the difficulty manufacturers face is procurement of lithium. The country is not self sufficient in production of lithium and has to import it from other regions.
Export of Lithium Ion Batteries: South Korea is currently one of the largest global exporters of lithium ion cells and batteries. Companies operating in this market have an extremely strong presence in the global lithium ion battery landscape as well. The main reason for high export has been increasing demand for lithium ion batteries from electric car manufacturers and ESS projects being undertaken in Germany and USA.
What Are The Major Segments In The Lithium Ion Cell And Battery Market In South Korea?
The market can be segmented by Type of Battery, Battery Capacity and Application Areas.
By Type of Battery: The major types of batteries present in the market are Li-NMC, LFP, LCO and others. Li-NMC is the leading category in this segment because with a revenue market share of ~%. This is because it is used widely in consumer electronics and has slowly started to replace lead acid batteries in electric vehicles.
By Battery Capacity: In 2017, 3,000 – 10,000 mAh battery capacity accounted for the highest share of ~% of the market by revenue due to its common usage in electronic devices. This was followed by battery capacity of more than 60,000 mAh which is widely used in ESS applications.
By Application Areas: The application areas for lithium ion batteries include Consumer Electronics, ESS/UPS, Automotive Sector, Industrial Sector and Others. Others include usage of these batteries in military and defense equipment, medical equipment, drones, civil aviation and electric boats. Here, Consumer Electronics accounted for the highest revenue share of ~% as these devices such as mobile phones, smartphones, laptops, tablets and power banks are widely used in South Korea. This was followed by the ESS/UPS sector with revenue share of ~%.
What are the Recent Trends and Challenges in South Korea Lithium Ion Cell and Battery Market?
South Korea has observed growth in the demand for Electric Vehicles in the past 5 years. This has been due to falling prices of EVs coupled with government subsidies offered to buyers of EVs.
The government has also recently introduced a differentiated subsidy system for purchasers of Electric Vehicles. This is expected to contribute to the growth of the market in the future.
Another significant factor for the market is the increasing number of mobile phone subscribers which is increasing the demand for mobile phones. Since lithium ion batteries are widely used in manufacturing of mobile phones, this is driving growth in the lithium ion battery market in South Korea.
The global prices of lithium ion battery have been declining since 2013. This is because of a growing battery manufacturing industry with significant economies of scale starting to bring the costs down
Cobalt is a major component for certain types of lithium ion batteries such s Li-NCA, LCO and Li-NMC. The prices of Cobalt have been rising and this is becoming a major challenge for manufacturers of lithium ion batteries in South Korea.
In addition to this, South Korea is not rich in lithium ore and has to import it from other countries. This may cause timeline problems and foreign exchange risk issues for lithium ion battery manufacturers in South Korea.
Some more recent challenges that lithium ion battery manufacturers in South Korea have been facing are the stringent rules and regulations for transportation, shipments and packaging of lithium ion batteries as well as the increasing imports of these batteries from China.
Keywords:–
South Korea Lithium Ion Battery Market
Global Lithium Ion Battery Market
South Korea Lithium Ion Battery Ecosystem
Lithium Ion Battery Anode South Korea
Lithium Ion Battery Cathode South Korea
Cathode Major Manufacturers South Korea
Anode Major Manufacturers South Korea
Electrolyte Major Manufacturers South Korea
Separator Major Manufacturers South Korea
Lithium Ion Battery Type South Korea
Lithium Ion Battery Capacity South Korea
Lithium Ion Battery Application South Korea
Lithium Ion Battery ESS/UPS South Korea
Lithium Ion Battery Automotive South Korea
Lithium Ion Battery Industrial South Korea
Lithium Ion Battery Exports South Korea
Lithium Ion Battery Imports South Korea
Lithium Ion Battery Cost South Korea
EV Segment Asian Players South Korea
South Korea Lithium Ion Battery Companies
South Korea Green Energy Policy
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