The global electric vehicle (EV) market is not just a race for dominance among countries but also a battleground for leading companies in Korea, China, and Japan as they compete in next-generation battery technology. According to SNE Research, global EV sales reached 14,073,000 units in 2023, showing a 33.5% increase from the previous year. However, this growth rate has been declining since its peak in 2021, indicating a slowdown in demand.
The industry attributes this deceleration to several factors, including the exhaustion of early adopters, inadequate charging infrastructure, and high prices. As a result, a stagnant period, often referred to as a “chasm,” is expected before mass adoption can occur. Nevertheless, experts remain optimistic about the long-term prospects of electrification as an irreversible trend. SNE Research predicts that, after 2025, stricter environmental regulations, the introduction of new EV models, and the spread of price reductions will pave the way for market recovery.
In anticipation of this recovery, automobile and battery manufacturers are aggressively pursuing next-generation battery technologies to seize dominance in the post-chasm market. Samsung SDI, one of Korea’s major battery companies, is leading the way in the all-solid-state battery sector. It has already produced an all-solid-state battery prototype sample, which is currently undergoing joint testing with global automobile manufacturers. Full-scale mass production is scheduled to commence in 2027.
Other industry players are following suit. SK telecom plans to establish an all-solid-state battery pilot line at its Daejeon battery research center by 2025, with a commercial prototype expected by 2028. LG Energy Solution aims to start mass production of all-solid-state batteries by 2030. Collaboration between battery manufacturers and automobile companies is also intensifying. Hyundai Motor Group, for example, is establishing joint ventures with both domestic and international battery companies while enhancing its in-house battery design capabilities.
Not to be outdone, Chinese electric vehicle companies, who currently dominate the global market, are ramping up their efforts in all-solid-state battery production. SAIC plans to establish an all-solid-state battery production line by 2025, with mass production starting in 2026 and new vehicles equipped with these batteries set to launch in 2027. GAC and CATL also have their sights set on all-solid-state batteries, with plans for equipping their electric vehicles with this technology by 2026 and 2027, respectively.
In Japan, Toyota is expected to lead the charge in all-solid-state battery production. The automotive giant has partnered with Idemitsu Kosan to develop and mass-produce these advanced batteries, aiming to achieve a driving range of over 1,200 km with just a 10-minute charge. Nissan is also making strides in this field, with plans to start trial production of all-solid-state batteries by March next year and release electric vehicles equipped with this technology in the fiscal year beginning April 2028.
While the race for next-generation battery supremacy continues, it is essential to recognize the collaboration and competition driving technological advancements in the global electric vehicle market. As companies strive to overcome the challenges hindering mass adoption, the future of EVs and advanced battery technology appears promising.
FAQ Section:
1. What is the current state of the global electric vehicle (EV) market?
– According to SNE Research, global EV sales reached 14,073,000 units in 2023, showing a 33.5% increase from the previous year. However, the growth rate has been declining since 2021, indicating a slowdown in demand.
2. What factors are attributed to the deceleration in the EV market?
– The industry attributes the deceleration to several factors, including the exhaustion of early adopters, inadequate charging infrastructure, and high prices.
3. Will there be a recovery in the EV market?
– Experts remain optimistic about the long-term prospects of electrification. SNE Research predicts that, after 2025, stricter environmental regulations, the introduction of new EV models, and the spread of price reductions will pave the way for market recovery.
4. What are automobile and battery manufacturers doing to seize dominance in the EV market?
– In anticipation of the market recovery, automobile and battery manufacturers are aggressively pursuing next-generation battery technologies. They are investing in the development of all-solid-state batteries, which are expected to be crucial in the post-chasm market.
5. Which companies are leading the way in all-solid-state battery production?
– Samsung SDI, a major battery company from Korea, is currently leading in the all-solid-state battery sector. Other companies such as SK telecom, LG Energy Solution, and Chinese electric vehicle companies like SAIC, GAC, and CATL are also focusing on all-solid-state battery production.
6. What are the plans of Japanese companies in all-solid-state battery production?
– Toyota, in partnership with Idemitsu Kosan, is expected to lead in all-solid-state battery production in Japan. Nissan is also making strides in this field, with plans to start trial production by March next year.
Definitions:
– EV: Electric Vehicle – a vehicle that runs on electricity stored in its batteries rather than relying solely on an internal combustion engine.
– Chasm: Refers to a stagnant period in the market before mass adoption can occur.