As per MRFR analysis, the South Korea Electric Vehicles Battery Market Size was estimated at 2.23 (USD Billion) in 2024.The South Korea Electric Vehicles Battery Market Industry is expected to grow from 3(USD Billion) in 2025 to 15 (USD Billion) by 2035. The South Korea Electric Vehicles Battery Market CAGR (growth rate) is expected to be around 15.756% during the forecast period (2025 - 2035).
Key South Korea Electric Vehicles Battery Market Trends Highlighted
The South Korea Electric Vehicles Battery Market is currently experiencing significant growth, driven by increasing government support for green energy initiatives and a shift towards electric mobility. The South Korean government is heavily investing in research and development for battery technology, aiming to reduce dependence on fossil fuels and enhance energy efficiency.
This push for electric vehicles (EVs) aligns with global trends focusing on sustainability, which encourages manufacturers to innovate and improve the performance and safety of battery systems. There are abundant opportunities for new players in the market, particularly in sectors like solid-state batteries and recycling technologies.As South Korea aims to boost its EV production, advances in battery lifecycle management are growing in importance, allowing producers to capitalize on the full potential of battery resources.
Additionally, partnerships between automakers and technology firms are becoming more common, fostering collaboration that helps drive innovation in battery design and manufacturing processes. In recent times, there has been a notable increase in demand for faster charging solutions, which reflects consumer expectations for convenience alongside sustainability. The trend towards lighter and more efficient batteries is also notable, as manufacturers strive to enhance vehicle range while minimizing weight.
Furthermore, South Korea's commitment to achieving carbon neutrality by 2050 supports the robust development of the EV battery sector. Given these trends, the South Korea Electric Vehicles Battery Market is poised for significant advancements, positioning the nation as a key player in the global electric vehicle ecosystem.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
South Korea Electric Vehicles Battery Market Drivers
Government Initiatives and Policies Supporting Electric Vehicles
The South Korean government has established aggressive policies and incentives to promote the adoption of electric vehicles, particularly targeting the electric vehicle battery sector within the South Korea Electric Vehicles Battery Market Industry. As part of its Green New Deal initiative, which aims to boost the country's transition to a low-carbon economy, the government plans to invest significantly in charging infrastructure and battery technology development.
This support is evidenced by a commitment of approximately 73 billion USD in funding for green technology sectors by 2025, as outlined in official government resources. Such initiatives are expected to enhance battery production capabilities and foster innovation, thereby accelerating market growth. Furthermore, the Ministry of Trade, Industry and Energy indicates that the South Korean electric vehicle market is estimated to see sales surpass 1.13 million vehicles by 2025, creating robust demand for high-performance batteries, which further affirms the industry's expansion prospects in this region.
Rising Consumer Demand for Sustainable Transportation
There has been a notable increase in consumer preference for eco-friendly and sustainable modes of transportation in South Korea, driven by growing awareness of environmental issues and climate change. Key stakeholders in the South Korea Electric Vehicles Battery Market Industry, including major automakers like Hyundai and Kia, are responding to this trend by investing heavily in electric vehicle technology and battery innovations.
According to data from the Korea Automobile Manufacturers Association, around 10% of new vehicle sales in South Korea are expected to consist of electric vehicles by 2025.This shift in consumer preference is likely to accelerate the demand for electric vehicle batteries, thus propelling market growth significantly in South Korea.
Technological Advancements in Battery Technology
Technological innovations in battery technology, such as the development of solid-state batteries and enhanced lithium-ion cells, are playing a crucial role in the growth of the South Korea Electric Vehicles Battery Market Industry. Companies like LG Chem and Samsung SDI are actively engaged in Research and Development to improve battery performance and safety.
Recent advancements in energy density and charging speeds are making electric vehicles more viable and user-friendly.As an example, the Korea Institute of Energy Research foresees new battery technologies, improving the range of electric vehicles to over 500 kilometers by 2025. Such a diversified terrain of technology development is crucial to appealing to more consumers and competing more vigorously in the industry.
Global Supply Chain and Production Capacity Expansion
As one of the leading manufacturers of electric vehicle batteries, South Korea is strategically positioned within the global supply chain. of production capacity by firms such as LG Chem, Samsung SDI, and SK Innovation has established South Korea as a pivotal player in the global electric vehicle battery market.
Reports from the Ministry of Trade, Industry and Energy reveal that battery production is projected to grow by approximately 20% annually through 2030, further establishing the nation as a critical supplier for both local and international automakers.The increasing electric vehicle battery manufacturing capacity will help the South Korea Electric Vehicles Battery Market Industry meet the surging global demand for electric vehicles, thus driving market growth.
South Korea Electric Vehicles Battery Market Segment Insights
Electric Vehicles Battery Market Battery Type Insights
The South Korea Electric Vehicles Battery Market is undergoing significant transformation, particularly in the Battery Type segment. This segment is pivotal, as it defines the core of the energy storage systems powering electric vehicles, with various types providing distinct benefits shaping their adoption. Lithium-Ion batteries are the most widely utilized in electric vehicles due to their high energy density, longevity, and declining costs, which contribute to their majority market holding.
Solid-State batteries are positioned as the next generation in battery technology, featuring improved safety due to their non-flammable properties and higher energy capacities, thereby offering promising opportunities for mainstream deployment.Nickel-Metal Hydride batteries, while less common today, still find applications in hybrid vehicles due to their enduring reliability and established infrastructure. Meanwhile, Lead-Acid batteries serve in specific use cases where lower costs and recyclability are significant factors, particularly in older hybrid models.
The South Korea Electric Vehicles Battery Market benefits from strong government support, particularly in promoting clean energy initiatives, which further drives investment and innovation across these battery types. As Korea seeks to ramp up its electric vehicle deployment, the trends show a clear shift towards more advanced battery technologies that align with international sustainability goals, creating a fertile landscape for growth in the electric vehicle battery industry.Furthermore, with an increasing focus on Research and Development, South Korean companies are poised to dominate the battery technology arena, propelling the market in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electric Vehicles Battery Market Electric Vehicle Type Insights
The South Korea Electric Vehicles Battery Market is significantly shaped by the Electric Vehicle Type segment, which includes Battery Electric Vehicles (BEVs), Plug-In Hybrid Electric Vehicles (PHEVs), and Hybrid Electric Vehicles (HEVs). BEVs are gaining momentum due to their zero-emission capabilities and the growing governmental push towards sustainable and eco-friendly transport solutions, aligning with South Korea's commitment to reducing carbon footprints.
PHEVs offer a balance between electric and conventional fuel usage, making them attractive for consumers who are transitioning to full electrification but may still need a backup fuel source.Meanwhile, HEVs remain relevant in the market for their exceptional fuel efficiency, appealing to drivers seeking reduced operating costs. The segmentation reflects the governmental incentives and investments in electric mobility infrastructure, illustrating a robust strategy for the electrification of transport in South Korea. The market data indicates an increasing demand, driven by advancements in battery technology and growing environmental awareness, presenting a dynamic landscape where each vehicle type plays a vital role in pushing the South Korea Electric Vehicles Battery Market forward.
Electric Vehicles Battery Market Application Insights
The Application segment of the South Korea Electric Vehicles Battery Market showcases considerable diversity and importance across various categories, including Automotive, Public Transport, Two-Wheeler, and Energy Storage System. The Automotive sector is a key driver, reflecting the rising consumer demand for electric vehicles, which is bolstered by government initiatives aimed at reducing emissions and promoting sustainable mobility solutions in urban environments.
Public Transport is increasingly adopting electric buses and supportive battery technologies to enhance efficiency and decrease carbon footprints, thus aligning with the national goal of cleaner public transit systems.The Two-Wheeler category illustrates a growing preference for electric scooters and motorcycles, catering to urban commuters seeking cost-effective and environmentally friendly transportation options. Furthermore, the Energy Storage System plays a critical role in stabilizing renewable energy sources, offering vast potential for integrating electric vehicle batteries with smart grid technologies, which is crucial for energy management in South Korea. Collectively, these segments reflect the South Korea Electric Vehicles Battery Market's revenue potential and the significant demand trends shaping its future, driven by technological advancements and shifting consumer preferences toward sustainable energy solutions.
Electric Vehicles Battery Market Capacity Insights
The South Korea Electric Vehicles Battery Market is experiencing significant growth, driven by the increasing adoption of electric vehicles and government initiatives aimed at reducing carbon emissions. Within the capacity segment, diverse categories such as Below 20 kWh, 20 kWh to 50 kWh, 51 kWh to 100 kWh, and Above 100 kWh are notable. Each category plays a critical role in shaping the overall market landscape. The Below 20 kWh category is essential for compact vehicles and efficient commuter solutions, catering to consumers looking for affordability and shorter ranges.The 20 kWh to 50 kWh segment often powers mid-range electric vehicles, appealing to a broader audience who require a balance of range and cost.
The 51 kWh to 100 kWh segment supports larger electric vehicles and SUVs, focusing on resilience in performance and long-distance travel. In contrast, the Above 100 kWh category is significant for high-performance electric vehicles, showcasing innovations in battery technology and catering to a premium market segment. The evolution of battery technology within these categories has unlocked various opportunities, enhancing performance and reducing costs, thus attracting investment and fostering competitive dynamics within the industry.Additionally, advancements in infrastructure and applications continue to pave the way for a promising future within the South Korea Electric Vehicles Battery Market.
South Korea Electric Vehicles Battery Market Key Players and Competitive Insights
The South Korea Electric Vehicles Battery Market is one of the most dynamic and rapidly evolving sectors due to the global push towards sustainability and the increasing adoption of electric vehicles. This market is characterized by intense competition among leading manufacturers who are innovating and enhancing their battery technologies to meet the growing demands of electric vehicle manufacturers. With South Korea being a prominent player in electric vehicle production, the battery market has become a focal point for technological advancements. The competitive landscape is shaped by several strategic developments, collaborations, and investments aimed at reinforcing market presence and driving R&D initiatives.
Hyundai Motor Group plays a crucial role in the South Korea Electric Vehicles Battery Market with its significant commitment to electric mobility. The company has established strong partnerships with battery manufacturers to secure high-quality battery supplies, which in turn ensures the performance and sustainability of their electric vehicles. Hyundai's strengths lie in its robust research and development efforts, innovative design capabilities, and an extensive network that supports the rapid rollout of electric vehicles. Furthermore, the company's focus on developing advanced battery technology, including efficient lithium-ion batteries and upcoming solid-state batteries, positions it favorably in the competition, enhancing its ability to deliver longer battery life and improved safety standards.Samsung Electronics, while known for its consumer electronics, has made significant strides in the South Korea Electric Vehicles Battery Market with its cutting-edge battery technologies.
The company's key products in this domain include lithium-ion batteries designed specifically for electric vehicles, which are recognized for their high energy density and durability. Samsung's market presence is bolstered by its strategic partnerships and collaborations within the automotive sector, enabling access to innovative battery solutions. The company has invested in expanding its battery manufacturing capabilities, and its strengths lie in its advanced technology and quality control processes. Additionally, recent mergers and acquisitions aimed at integrating battery technologies further enhance Samsung's ability to compete in the electric vehicle battery market effectively, solidifying its position as a critical player in South Korea's transition towards electric mobility.
Key Companies in the South Korea Electric Vehicles Battery Market Include:
South Korea Electric Vehicles Battery Market Industry Developments
Recent developments in the South Korea Electric Vehicles Battery Market reflect a dynamic and rapidly evolving landscape. Hyundai Motor Group has ramped up its investment in battery technology in collaboration with industry leaders like LG Chem and SK On to enhance EV production efficiency and battery performance. Samsung SDI has also been making strides, committing to expand its production capacity in response to growing demand for electric vehicles.
Meanwhile, POSCO Chemical continues to enhance its raw material supply chain to ensure stable and sustainable battery production.In September 2023, LG Energy Solution announced its intention to acquire a significant stake in a battery recycling firm to strengthen its circular economy initiatives, a move supported by the growing environmental regulations in South Korea. The government is facilitating substantial public funding to support the establishment of a localized battery supply chain, which is expected to influence market dynamics positively.
Furthermore, in August 2023, Hanwha Corporation unveiled collaborations with global peers to foster advancements in battery materials, significantly impacting the operational framework of local players. The surging demand for electric vehicles in South Korea is anticipated to drive substantial growth in market valuations, positioning it as a critical hub for the EV battery industry.
South Korea Electric Vehicles Battery Market Segmentation Insights
Electric Vehicles Battery Market Battery Type Outlook
Electric Vehicles Battery Market Electric Vehicle Type Outlook
Electric Vehicles Battery Market Application Outlook
Electric Vehicles Battery Market Capacity Outlook
Below 20 kWh
20 kWh to 50 kWh
51 kWh to 100 kWh
Above 100 kWh
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 2.23(USD Billion) |
| MARKET SIZE 2024 | 3.0(USD Billion) |
| MARKET SIZE 2035 | 15.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 15.756% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Hyundai Motor Group, Samsung Electronics, Daewoo International, Korea Electric Power Corporation, Hanwha Corporation, Korean Institute of Energy Research, SK On, LG Chem, LG Energy Solution, Samsung SDI, Iljin Materials, POSCO Chemical, Ecopro BM |
| SEGMENTS COVERED | Battery Type, Electric Vehicle Type, Application, Capacity |
| KEY MARKET OPPORTUNITIES | Government subsidies for EV batteries, Growing demand for battery recycling, Innovative solid-state battery development, Expansion of EV charging infrastructure, Partnerships with automotive manufacturers |
| KEY MARKET DYNAMICS | Government incentives and regulations, Growing EV adoption, Technological advancements in batteries, Supply chain challenges, Environmental sustainability concerns |
| COUNTRIES COVERED | South Korea |
Frequently Asked Questions (FAQ) :
The South Korea Electric Vehicles Battery Market is expected to be valued at 3.0 USD Billion in 2024.
By 2035, the market is projected to grow to 15.0 USD Billion.
The market is expected to grow at a CAGR of 15.756% from 2025 to 2035.
The Lithium-Ion battery type is expected to dominate the market, growing to 7.5 USD Billion by 2035.
The market size for Solid-State batteries is projected to reach 3.0 USD Billion by 2035.
Key players include Hyundai Motor Group, Samsung Electronics, LG Chem, and SK On among others.
The market size for Nickel-Metal Hydride batteries is valued at 0.5 USD Billion in 2024.
The growing electric vehicle sector is a significant growth driver for the market.
The market faces challenges such as supply chain constraints and rising raw material costs.
The market size for Lead-Acid batteries is anticipated to grow to 2.5 USD Billion by 2035.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Senior Research Analyst She has over 5 years of rich experience, in market research and consulting providing valuable market insights to client. hands on expertise in management consulting, and extensive knowledge in domain including ict, automotive & transportation and aerospace & defense. she is skilled in go-to market strategy, industry analysis, market sizing, in depth company profiling, competitive intelligence & benchmarking and value chain amongst others.
Get in Touch
© 2025 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
