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Korea Herald
5 days ago
- Business
- Korea Herald
CATL mine suspension lifts lithium prices, Korean battery stocks
The suspension of CATL's lithium mining operations in China, the world's third-largest lithium producer, is set to lift near-term profits for South Korean battery material suppliers as rising lithium prices lift inventory values. According to news reports on Monday, CATL has halted production at its Yichun mine — the biggest in China's lithium hub in Jiangxi province — as it failed to renew its mining license. CATL said the license for its Yichun mine expired on Aug. 9 and that it is seeking renewal 'as soon as possible,' adding production will resume once it receives approval, Reuters reported. However, industry insiders expect the Chinese government may delay renewing the license as part of efforts to curb oversupply in the domestic lithium sector. 'The Chinese government appears to have strategically delayed the renewal of CATL's lithium mining license to rein in cutthroat competition stemming from domestic oversupply, raising the possibility of similar measures against other mines in the country,' said Yang Min-ho, an energy engineering professor at Dankuk University. This could benefit Korean battery material companies, which have seen their profit margins squeezed by weak lithium prices arising from oversupply, including from China, Yang added. 'A rise in lithium prices, prompted by CATL's mine halt, could lead to higher prices for cathode materials, and in turn, higher margins in the next quarter,' said an industry source familiar with the matter on condition of anonymity. 'Despite the electric vehicle sector's slowdown, order volumes from customers (battery cell manufacturers) may recover as they seek to purchase products from current inventories at favorable prices.' CATL's mine suspension immediately drove a surge in global lithium prices and lifted the share prices of South Korean battery-related companies. On Monday, lithium futures on the Guangzhou Futures Exchange — a key global benchmark for lithium price, particularly for China and the Asia-Pacific region — soared 8 percent to hit the daily limit, reaching 81,000 yuan ($11,270) per ton, the highest level since last November. For Korean battery material companies, Posco Future M and EcoPro BM's stock prices rose sharply on the main Kospi and the tech-heavy Kosdaq, by 8.31 percent and 7.98 percent, respectively, in the same period. L&F Corp.'s share also jumped 10.32 percent. On Tuesday, Posco Future M and EcoPro BM climbed 0.37 percent and 5.97 percent, respectively, during intraday trading, while L&F Corp. gained 3.12 percent from the previous session. Most Korean battery material suppliers have experienced a downturn in the second quarter due to the decline in lithium prices and a slowdown in EV demand. Posco Future M's operating profit dipped 71.7 percent to 770 million won ($554,200) from April to June from the previous year. L&F's operating loss expanded by 43.9 percent to 121.2 billion won. Meanwhile, CATL has been aggressively expanding its mining investments to reduce EV battery production costs. Its Yichun mine, with an annual capacity of 46,000 metric tons of lithium carbonate equivalent, accounts for roughly 3 percent of projected global output in 2025, according to Australian government data cited by Reuters.
Korea Herald
26-06-2025
- Automotive
- Korea Herald
Huawei's 3,000 km EV battery claim sparks skepticism in solid-state race
Experts call range 'implausible,' citing technical hurdles, mass-production limits Huawei is making bold claims in the race for next-generation electric vehicle batteries, but are they too good to be true? The Chinese tech giant, already a high-profile newcomer in the EV component market, has filed a patent for a sulfide-based all-solid-state battery that reportedly enables a driving range of up to 3,000 kilometers and ultrafast charging in just five minutes, according to Chinese media outlet CarNewsChina. If true, the battery would far exceed the capabilities of any EV battery currently in commercial use. The patent, presumed to be filed in China, details Huawei's method of enhancing battery performance by doping sulfide solid electrolytes with nitrogen. The technique aims at mitigating interface instability — a key hurdle in solid-state battery development. The energy density is reportedly between 400 and 500 watt-hours per kilogram, potentially two to three times higher than today's lithium-ion cells. But skepticism is mounting among industry experts in Korea, who view the 3,000 km range and five-minute charging claims as ungrounded. 'Even the most advanced lithium-ion batteries, which generally have higher capacity than solid-state prototypes, fall far short of that kind of range,' said Yang Min-ho, professor of energy engineering at Dankook University. 'Such performance might be possible in lab conditions using only active materials, but real-world factors like energy loss and thermal management make mass production extremely difficult.' Yang pointed out that the cathode — the component that most determines a battery's energy capacity — remains largely the same between lithium-ion and solid-state formats, casting further doubt on Huawei's projection. A researcher at a major Korean battery firm described the nitrogen doping approach as 'a standard technique with limited scalability.' 'While nitrogen doping can help with interface stability, it's usually done under vacuum and with great precision. It's not something you can scale for commercial production without major cost and time penalties,' the researcher said. 'It's like trying to sprinkle pepper on a sandwich using tweezers.' Huawei's patent, the researcher added, may offer theoretical promise but lacks the kind of third-party validation or performance data required in academic research or production-grade rollout. 'That's the nature of patents. They grant rights, not credibility.' In the meantime, Korea's 'big three' battery makers — LG Energy Solution, Samsung SDI and SK On — appear unfazed. 'We monitor developments in China closely, but this doesn't look like a game-changer yet,' the researcher said. Samsung SDI is currently leading Korea's solid-state battery efforts, having already sent samples to clients and targeting mass production by 2027. LG Energy Solution is working on both oxide- and sulfide-based solid-state technologies, aiming for commercialization by 2030. SK On plans to introduce polymer-oxide and sulfide variants between 2028 and 2030. Huawei's domestic rival Xiaomi has also entered the solid-state patent race, filing for a layered electrode structure that claims to deliver 1,200 km of range and an 800 km recharge in just 10 minutes. While the race for solid-state dominance continues, experts say such breakthrough-level numbers should be met with caution, especially when they come without independent verification. 'Huawei's ambition is clear,' said Yang. 'But battery science doesn't move in leaps. It moves in increments, and those increments take years to scale.'
Korea Herald
27-05-2025
- Automotive
- Korea Herald
Tesla's US battery ramp-up opens doors for Korean material suppliers
Korean firms gain ground with cost-efficient materials, reduced reliance on China As electric vehicle juggernaut Tesla urges longtime battery partner Panasonic to accelerate production in the US, Korean are poised to take the spotlight as key material suppliers — leveraging their cost competitiveness and reduced reliance on the Chinese supply chain. According to The Financial Times, Tesla has recently pushed Panasonic to fast-track the two companies' joint battery cell manufacturing plant, which has been under construction since 2022. The $4 billion project, initially scheduled to begin operations by March this year, has been rescheduled for as early as July due to unexpected setbacks, including cost increases. The plant's annual capacity is projected at 30 gigawatt-hours — enough to power approximately 300,000 vehicles — and is expected to increase Tesla's US production capacity by 60 percent by March 2027. 'As we've been told by our customer to get Kansas moving quickly, we're hurrying to do so … There are risks, but we are planning on robust demand for batteries from our main customer as of now,' said Panasonic CEO Yuki Kusumi in an interview with Tokyo-based media, as quoted by the Financial Times. Korean suppliers rise as EV battery formulas evolve Even if Panasonic begins operations at its Kansas plant this year, concerns remain over a potential production gap in new battery materials, stemming from Tesla's cost-cutting strategy amid slowing EV demand, according to sources. Reportedly, one of Panasonic's main material suppliers, Japan's Sumitomo Chemical, has announced plans to shift its cathode material chemistry from nickel, cobalt and aluminum (NCA) to nickel, cobalt and manganese (NCM) starting next year, citing customer demand. 'There's a reason why Korean battery makers have preferred NCM over NCA. Manganese is significantly cheaper than aluminum — almost incomparable,' said Yang Min-ho, an energy engineering professor at Dankook University. 'From a research perspective, it has also shown better structural stability in tri-component lithium-ion batteries. Although NCA initially outperformed NCM, companies have since improved capacity by increasing nickel content.' While Korea's LG Chem, Posco Future M and L&F Co. are known to supply NCA cathode materials for Tesla through Panasonic, their deeper focus on NCM gives them a competitive edge over Sumitomo Chemical. 'We believe our company's diversified product portfolio — ranging from NCM and nickel cobalt manganese aluminum (NCMA) to NCA — could appeal to Panasonic,' said an industry source who requested anonymity. Industry insiders also point out that Korean firms may benefit from distancing themselves from the Chinese graphite supply chain. Despite pushback from Tesla and Panasonic, the US Commerce Department on May 20 issued a preliminary ruling to impose tariffs of up to 720 percent on certain Chinese graphite imports, citing unfair government subsidies. In response, Posco Future M last month announced a 396.1 billion won ($289 million) investment in spherical graphite production — a key precursor for anodes — to reduce its reliance on Chinese raw materials. Legacy carmakers chip away at Tesla's lead Tesla, still the leading EV maker in the US, is under pressure as it gradually loses market dominance — a position it established with the launch of its Model S sedan in 2012. According to Cox Automotive, Tesla's US market share fell from 55 percent in 2023 to 48.7 percent in 2024 — the first time it has dropped below 50 percent. Sales declined about 6 percent year-on-year to 633,762 units. Meanwhile, legacy automakers such as General Motors, Ford and Hyundai Motor Group are expanding their presence in the US EV market. Hyundai Motor and Kia collectively sold 123,000 battery electric vehicles in the US in 2024, securing a 10 percent market share, according to data from the Korea Automobile & Mobility Association. Tesla is racing to expand its US battery production to capitalize on subsidies and tax credits offered under the Inflation Reduction Act while the window remains open. Last Thursday, the US House of Representatives passed a bill moving up the expiration date for the $7,500 consumer EV subsidy by six years to Dec. 31, 2026. It also shortened the Advanced Manufacturing Production Tax Credit period by one year, now set to end in 2031. These changes increase the urgency for companies to localize their manufacturing and supply chains within the US clean energy sector.
Korea Herald
28-04-2025
- Automotive
- Korea Herald
With US tariffs looming, CATL accelerates Korean shift to protect global sales
Hyundai Motor, Kia poised to leverage CATL's low-cost batteries as tariff pressures mount in US market China's CATL, the world's largest electric vehicle battery juggernaut, has established a sales subsidiary in South Korea, seeking a bigger foothold on the home turf of Korean competitors as part of a strategic move to counteract the impact of Donald Trump's unprecedented tariffs levied on Chinese goods. Industry insiders project that the bold entry of CATL, capitalizing on its strong price competitiveness, will likely spark intense competition with Korean battery companies. However, local carmakers — namely Hyundai Motor and Kia — may benefit from the market disruption by increasing their use of Chinese batteries to mitigate the impact of US tariffs. According to local media reports, CATL set up CATL Korea Co. in January in Gangnam, southern Seoul, upgrading its smaller local office that had been operational since 2011. The Korean unit has registered to engage in the manufacturing and sales of battery and energy storage system — or ESS — products, battery recycling, electric vehicle charging infrastructure, technological consulting and research and development, among other activities. Sources noted that CATL's expansion into Korea is seen as a countermeasure to indirectly export lithium-ion batteries to the US, particularly for Hyundai Motor and Kia. The Chinese-made cells are primarily installed in Hyundai's Casper Electric and Kia's Ray EV and Niro EV — all budget models. Although using more Chinese batteries renders Hyundai and Kia EVs ineligible for a $7,500 consumer subsidy under the US Inflation Reduction Act, experts indicate this is currently a minor concern for the Korean automakers. "Hyundai and Kia cars have not significantly benefited from the subsidy in the first place," said Yang Min-ho, an energy engineering professor at Dankook University. "The real issue is not the IRA. It's whether the companies can minimize the impact of tariffs by rebalancing their cost structure once they sell out their inventory by early June. This creates room for bolstering ties with CATL, which offers a wide portfolio from LFP (lithium iron phosphate) to NCM (nickel manganese cobalt) batteries." Yang added that Hyundai and Kia could not only offset tariff pressures with CATL's price-competitive batteries, but also use CATL's participation in new tenders to push domestic suppliers to lower prices. For CATL, having a sales subsidiary in Korea offers a potential strategic route to indirectly access the US market, where 145 percent tariffs now block Chinese battery exports. Challenges for local batteries While Hyundai's potential alliance revamp with CATL could be advantageous, the creeping presence of the Chinese battery giant raises concerns across Korea's EV, ESS and tech industries. Although CATL's LFP batteries are in the spotlight for competitive pricing, its NCM battery technology is also considered highly advanced. CATL reportedly supplies NCM cells to major automakers including Tesla, BMW, Volkswagen, Ford, Stellantis and General Motors — posing a direct challenge to Korean battery manufacturers, who have only recently begun commercializing LFP technology. At present, CATL's Korean unit cannot simply rebrand its ESS cells for US exports. However, industry watchers warn that it may only be a matter of time before CATL extends Korean operations to local production. 'To qualify as a Korean-made product, multiple manufacturing stages must occur within Korea. Otherwise, it could be construed as indirect dumping from China to the US,' said Kim Tae-hwang, an international trade professor at Myongji University. "If CATL builds a production base for ESS cells in Korea, it might bypass US tariffs, depending on regulatory approvals." A researcher at a Korean battery company, who requested anonymity, added, 'While domestic ESS demand is relatively low, CATL Korea's inclusion of ESS in its business scope suggests that exporting through Korean production could be a long-term strategy.' Tech leakage woes Expanding manufacturing often leads to expanded R&D operations. Industry insiders fear that CATL could establish a research center in Korea and recruit talent away from Korean battery firms. 'Even if local firms sue for tech leakage via former employees, proving it is very difficult,' the researcher said. 'Most confidentiality obligations expire within two to three years, further complicating enforcement.' Meanwhile, CATL Korea is recruiting staff for its marketing, sales and human resources divisions. The subsidiary is led by co-CEOs Kwon Hyuk-jun and Han Xinjun and has capital of 600 million won ($417,000). Kwon, who also serves as general counsel for CATL Hong Kong and chair of CATL Australia, has been instrumental in navigating global supply chain solutions for LFP and NCM cells. He is expected to manage regulatory risks and expand CATL's Korean sales network, while Han will focus on operational growth in the region.
