Leading Chinese battery maker CATL's 2024 revenue was more than four times the average of South Korea's three major battery firms, highlighting a structural gap in the global battery market. Against this backdrop, CATL chairman Robin Zeng's attendance at the APEC summit in Gyeongju, South Korea, on October 28, 2025, has drawn significant attention.
China-South Korea revenue and profitability gap widens
According to reports from South Korea's Yonhap News Agency and Bloter citing market research firm SNE Research, the average revenue of LG Energy Solution (LGES), Samsung SDI, and SK On was about KRW16 trillion (US$11.16 billion) in 2024. In contrast, CATL's 2024 revenue reached CNY362 billion (US$50.91 billion), more than four times the average of the South Korean trio.
During the same period, the South Korean battery firms collectively recorded an average loss of around KRW188.3 billion, while CATL posted an operating profit of CNY50.7 billion.
R&D investment highlights divide
The disparity extends into R&D investment, considered critical for future competitiveness. In 2024, CATL employed roughly 20,000 R&D personnel—seven times the average of 3,087 among South Korea's top three battery firms. CATL reportedly allocates over 15% of its workforce to R&D and reinvests 5–7% of annual revenue back into innovation.
SNE Research attributes these differences to fundamental structural contrasts between the Chinese and South Korean battery sectors. Backed by economies of scale, CATL continues expanding its OEM network and vertically integrates its value chain—from raw materials and cells to modules and recycling—minimizing costs and lead times.
By comparison, South Korea depends heavily on China for core materials and relies largely on external demand from OEMs, limiting profitability and investment capacity. SNE Research emphasizes that despite similar technological levels, China achieves overwhelming advantages in speed, production scale, and cost efficiency due to these competitive gaps.
CATL deepens foothold ahead of APEC
In January 2025, CATL established CATL Korea, signaling its intent to deepen ties within the South Korean market. Although specific outcomes remain undisclosed, industry observers expect Zeng's appearance at the Gyeongju APEC summit to further solidify CATL's foothold locally.
Notably, Zeng is anticipated to engage Hyundai Motor Group chairman Chung Eui-sun in discussions on electric vehicle (EV) industry development during the APEC CEO Summit. The consensus across the sector suggests that securing a stable battery supply and EV pricing makes collaboration with CATL nearly indispensable for Hyundai Motor Group.
However, some concerns that expanded cooperation between Hyundai and CATL could intensify challenges facing South Korea's domestic battery industry.
Article translated by Rodney Chan and edited by Jerry Chen
