South Korean chemical giant benefits from brisk sales of Model 3s in China
South Korea’s LG Chem ranked first in the global electric vehicle (EV) battery market in the first fourth months of this year, according to industry data Tuesday.
Energy industry analysis firm SNE Research said that LG Chem’s EV battery supply jumped 91 percent during the January-April period from a year ago for a market share of 25.5 percent.
Japan’s Panasonic came in at the second position with 22.9 percent followed by reigning champion CATL from China with 21 percent, and China’s BYD with 6 percent.
LG Chem’s cross-town rivals Samsung SDI and SK Innovation ranked fifth and seventh by chalking up 18.9 percent and 74.3 percent growth year-on-year, respectively.
The brisk sales of Tesla vehicles in China underpinned the solid performance of LG Chem, which has supplied its products to the U.S.-based electric car giant.
Tesla’s Model 3s have won the hearts and minds of motorists across the world over the past few years although the company also faces trouble this year due to the COVID-19 pandemic.
However, Tesla fares well in China where the sales of Model 3 sedans more than tripled in volume in May compared to a month before, according to the China Passenger Car Association.
LG Chem provides its batteries to Tesla’s Shanghai factory, which strives to roll out 150,000 Model 3 vehicles this year.
Although LG Chem benefited from the strong sales of Tesla in China, the global market for EV batteries shrank 20.7 percent during the four-month period from a year before, SNE Research noted.
In particular, the market size contracted 39.8 percent in April amid the economic downturn due to COVID-19.
UPI News Korea provides this article. _ ED.