South Korea Electric Vehicle Battery Market Size (2024 - 2029)

The South Korea Electric Vehicle Battery Market is projected to experience significant growth over the forecast period, driven by factors such as government subsidies and advancements in battery technology. The availability of substantial government financial support for electric vehicle purchases is expected to boost consumer adoption, thereby increasing the demand for EV batteries. Additionally, improvements in battery technology, including enhanced energy density and reduced costs, are likely to make electric vehicles more appealing to consumers, further contributing to the market's expansion.

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Market Size of South Korea Electric Vehicle Battery Industry

South Korea Electric Vehicle Battery Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 8.21 Billion
Market Size (2029) USD 17.69 Billion
CAGR (2024 - 2029) 16.00 %
Market Concentration High

Major Players

South Korea Electric Vehicle Battery Market Major Players

*Disclaimer: Major Players sorted in no particular order

South Korea Electric Vehicle Battery Market Analysis

The South Korea Electric Vehicle Battery Market size is estimated at USD 8.21 billion in 2024, and is expected to reach USD 17.69 billion by 2029, growing at a CAGR of greater than 16% during the forecast period (2024-2029).

  • Availability of government subsidies has been among the major driving factors for electric vehicle sales in South Korea. The government provides a subsidy of KRW 6.8 million (USD 5,400) per electric vehicle, which further varies with the price band of the vehicle. The full subsidy is applicable for vehicle prices below KRW 57 Million (USD 46,462). The availability of such subsidies is anticipated to encourage more buyers to opt for electric vehicles, driving the demand for EV batteries.
  • Further, advancements in battery technology, such as increased energy density and cost reduction, can enhance the performance, range, and affordability of electric vehicle (EV) batteries. This, in turn, will increase the appeal and demand for EVs, as consumers will have access to vehicles with longer ranges, faster charging times, and more competitive pricing.
  • LG Energy Solution Ltd, SK Innovation, and Samsung SDI, South Korea's three primary EV battery makers, are moving quickly to meet the rapidly expanding worldwide demand for EV batteries.

South Korea Electric Vehicle Battery Industry Segmentation

An electric vehicle battery refers to the rechargeable energy storage device used in electric vehicles. It stores electrical energy that powers the vehicle's electric motor, allowing it to operate without the need for combustion engines. Electric vehicle batteries typically utilize lithium-ion or other advanced battery chemistries for efficient and reliable performance.

The scope of the South Korea Electric Vehicle Battery Market is segmented by Battery Type and Vehicle Type. By Vehicle Type, the market is segmented into Battery Electric Vehicles, Hybrid Electric Vehicles, and Plug-in Hybrid Electric Vehicles. By Battery Type, the market is segmented into Lead-acid Batteries, Lithium-ion Battery, and Other Battery Types. Other Battery types segment include Nickel-Metal Hydride batteries, solid-state batteries, ultracapacitors, etc. 

For each segment, market sizing and forecast have been done on the basis of value in USD.

By Battery Type
Lead-acid Battery
Lithium-ion Battery
Other Battery Types
By Vehicle Type
Battery Electric Vehicles
Hybrid Electric Vehicles
Plug-in Hybrid Electric Vehicles
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South Korea Electric Vehicle Battery Market Size Summary

The South Korea electric vehicle battery market is poised for significant growth, driven by government incentives and advancements in battery technology. The availability of substantial subsidies for electric vehicles is a key factor encouraging consumer adoption, thereby boosting the demand for EV batteries. South Korea's leading battery manufacturers, including LG Energy Solution Ltd, SK Innovation, and Samsung SDI, are rapidly expanding their production capabilities to meet the increasing global demand. The country's robust charging infrastructure, the most established per unit globally, further supports the growth of the EV market. Initiatives in cities like Seoul aim to significantly increase the number of charging points, facilitating the transition to electric vehicles and enhancing the appeal of EVs through improved range and faster charging times.

Despite its domestic market lagging behind regions like Europe, China, and the United States, South Korea remains a lucrative market due to its technological prowess in battery manufacturing and strong export performance in Europe. The market is characterized by significant investments from key automobile companies such as Hyundai Motor Group and Kia Corporation, who are focusing on expanding production facilities and charging infrastructure. These efforts are complemented by government investments in advanced battery technologies, aiming to develop next-generation batteries with enhanced capabilities. The competitive landscape, with major players holding substantial market shares, drives innovation and positions South Korea as a pivotal player in the global EV battery market.

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South Korea Electric Vehicle Battery Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Electric Vehicle Sales is Likely to Fuel the Demand

    3. 1.3 Market Restraints

      1. 1.3.1 Limited Raw Material Resources Could Hinder the Price Equilibrium

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Battery Type

      1. 2.1.1 Lead-acid Battery

      2. 2.1.2 Lithium-ion Battery

      3. 2.1.3 Other Battery Types

    2. 2.2 By Vehicle Type

      1. 2.2.1 Battery Electric Vehicles

      2. 2.2.2 Hybrid Electric Vehicles

      3. 2.2.3 Plug-in Hybrid Electric Vehicles

South Korea Electric Vehicle Battery Market Size FAQs

The South Korea Electric Vehicle Battery Market size is expected to reach USD 8.21 billion in 2024 and grow at a CAGR of greater than 16% to reach USD 17.69 billion by 2029.

In 2024, the South Korea Electric Vehicle Battery Market size is expected to reach USD 8.21 billion.

South Korea Electric Vehicle Battery Market Report Snapshots

South Korea Electric Vehicle Battery Market Size & Share Analysis - Growth Trends & Forecast (2024 - 2029)