11 October 2024, Oxford – Oxford Metrica is set to release a white paper titled “South Korean secondary battery technology critical to global net zero,” prepared in collaboration with Kumyang.
The market for Lithium-ion batteries (LiBs) is increasingly dominated by China which enjoyed a market share of more than 60% in 2023. In that year Korea was ranked the second largest producer with a market share of 28%. Korea held a market share around 45% in 2022.
The white paper begins with an analysis of the long-term demand dynamics for both battery-powered electric vehicles (EVs) and LiBs, including a description of the top ten players in both sectors. Following an overview of LiB technology, it explores opportunities and challenges facing Korean LiB producers. The analysis concludes by examining Kumyang and its new technology.
The paper sets out to demonstrate that China’s dominance is likely to be strongly challenged by the re-emergence of Korea as a force in LiB production. There are three key change vectors that coalesce to favour Korea reasserting its position in the LiB market.
Firstly, the geo-politics of deglobalisation will weaken China. The United States, Canada and the European Union have all recently imposed significant tariffs on Chinese manufactured electric vehicles. Korea has free trade agreements (FTAs) which will strengthen its competitive position vis à vis China.
Secondly, the Korean government has demonstrated a strategic commitment to the LiB industry. Recently, government incentives amounting to the equivalent of US$38bn were announced. This investment includes developing the full value chain of production and recycling as well as research funds to keep Korea on the leading edge of battery technology.
Thirdly, a new force is emerging in the Korean LiB production industry. Busan-based Kumyang, a long-established chemical blowing agent firm, is about to introduce significant additional capacity with a superior technology.
“Oxford Metrica has been ebullient on Korea for over two decades and Korean dominance of the LiB market is the next wave of Korean excellence – we call it the new K-Wave,” said Dr. Rory Knight, Chairman of Oxford Metrica.
The white paper is available for download on the Oxford Metrica website.
About Oxford Metrica
Oxford Metrica is a strategic advisory firm, offering informed counsel to boards. Their advisory services are anchored on evidence-based research in risk and financial performance. Their work includes statistical analysis and index construction for banks and insurers, risk and performance analytics for asset managers, due diligence support in mergers and highly customised services for corporate boards.
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