Korean Battery Material Companies Seeking Chinese Partnerships

추렃 : BatteryNews (2025.5.3)

Korean Battery Material Companies Seeking Chinese Partnerships to Penetrate European Market

As Chinese battery companies rapidly expand in the European market, Korean battery material firms are actively seeking collaboration with them to secure new growth opportunities.

According to the battery industry on May 1, EcoPro BM announced during its first quarter earnings conference call on April 29 that it is pursuing discussions to supply CATL. An EcoPro BM official stated,

Adding,

Chinese battery cell companies like CATL and AESC have secured many production bases in Europe,

“We will closely monitor future plans of Chinese companies and respond accordingly in detail.”

EcoPro BM’s Hungarian cathode material plant aims to secure an annual production capacity of up to 108,000 tons and is scheduled for completion in the second half of this year. It will be capable of producing batteries for approximately 1.35 million electric vehicles annually. Notably, this plant in Debrecen is located just 3 km away from CATL’s Hungarian factory, providing a favorable geographical advantage. Furthermore, as potential competitor Umicore, a Belgian battery materials company, pursues restructuring due to recent poor performance, EcoPro BM is expected to benefit indirectly.

A battery industry official commented:

If the distance is close, logistics costs can be significantly reduced, so if performance tests are passed, the possibility of securing a supply contract is considerable,

“If CATL becomes a customer, supply to other Chinese battery companies will likely proceed smoothly.”

Solus Advanced Materials also operates a copper foil plant in Hungary with a production capacity of 38,000 tons. Recently, the company concluded a mid to long-term supply contract with a Chinese battery company based in Spain and other locations. It is reported that securing a contract with ACC, a European electric vehicle battery company, had a positive impact. Solus Advanced Materials can stably supply customized copper foil for each customer, including high-end products. The company aims to expand its production capacity in Hungary to a total of 100,000 tons in the long term by securing additional local customers.

The collaboration between Korean battery material companies and Chinese firms is attributed to the rapidly growing influence of Chinese companies in Europe. According to SNE Research, a specialized energy market research firm, as of January this year, the market share of Korean battery trio LG Energy Solution, Samsung SDI, and SK On in the European electric vehicle battery market fell by 15.4 percentage points year-on-year to 35.6%. In contrast, the market share of Chinese companies such as CATL, BYD, and CALB rose by 13 percentage points from 43% to 56.3% during the same period. This is interpreted as European automakers expanding their adoption of low-cost batteries following the temporary demand slowdown in electric vehicles.

In particular, CATL has rapidly increased its European market share from 17% in 2021 to 38% in 2024 by expanding cooperation with major European automakers such as BMW, Mercedes-Benz, and Volkswagen. A battery industry official predicted,

Adding,

As it is difficult for Chinese battery companies to enter the North American market due to U.S. containment, Europe is virtually the only region where overseas expansion is possible,

“With the bankruptcy of Northvolt, which was regarded as Europe’s rising battery company, the position of Chinese batteries in Europe may further strengthen.”