 |
Photo courtesy of CATL |
[Alpha Biz= Paul Lee] SEOUL, October 27, 2025 — Chinese battery giant Contemporary Amperex Technology Co. Ltd. (CATL) has widened its lead over South Korea’s three major battery manufacturers — LG Energy Solution, SK On, and Samsung SDI — in both sales and profitability, according to data from SNE Research, a Seoul-based energy market research firm.
CATL recorded CNY 362 billion (approximately ₩69 trillion or US$50 billion) in revenue last year, over four times the average ₩16 trillion posted by its three Korean competitors.
While the Korean trio collectively reported an average operating loss of ₩188.3 billion, CATL achieved CNY 50.7 billion (₩10 trillion) in operating profit, a gap exceeding tenfold.
The disparity extends into research and development (R&D) capacity. As of 2024, CATL employed 20,346 R&D personnel — roughly seven times the Korean average of 3,087. The company allocates over 15% of its total workforce to R&D and consistently reinvests 5–7% of its annual revenue in innovation.
SNE Research attributed the gap to structural differences between China’s and Korea’s battery industries.
“Chinese companies have leveraged strong state-backed industrial policies and domestic demand to pursue aggressive capital expenditures and expand OEM partnerships,” the report stated.
CATL, in particular, has established a fully vertical value chain spanning raw materials, components, cell and pack manufacturing, and recycling, minimizing both production costs and lead times through complete internal integration.
In contrast, Korean manufacturers remain dependent on Chinese suppliers for key materials and rely heavily on external OEM demand, limiting profitability and investment capacity.
The findings underscore how industrial policy, vertical integration, and domestic scale continue to define the competitive gap in the global EV battery race.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
