Kia Corp. will use a nickel cobalt manganese (NCM) battery from China’s CATL in the South Korean version of its EV5 electric SUV, set for release in September, as the company shifts focus toward performance in its domestic lineup.
The automaker had considered lithium iron phosphate (LFP) batteries from BYD, which currently supplies power units for the EV5 in China. While BYD’s LFP technology is more cost-effective, Kia reportedly determined it did not meet the requirements for the South Korean market. CATL’s NCM battery, although more expensive than BYD’s, was considered a better fit for the vehicle’s performance targets and remains cheaper than batteries from South Korea’s top suppliers.
This move marks the fourth time Kia has selected CATL’s NCM batteries for its models, including earlier deployments in the Niro EV, Ray EV, and PV5. Hyundai Motor Co. has also previously used CATL batteries in its Kona EV, suggesting a broader trend among Korean automakers to diversify battery sourcing amid evolving cost-performance considerations.
Industry analysts see the decision as part of a growing shift in the competitive dynamics between South Korean and Chinese battery producers. While South Korea’s LG Energy Solution, Samsung SDI, and SK On have traditionally supplied high-performance ternary batteries for local automakers, they are increasingly facing competition from Chinese firms, particularly in pricing.
In response to this competitive pressure, South Korean battery makers are expanding efforts to enter the LFP segment, which has been dominated by Chinese producers. Initiatives include joint development projects, new domestic manufacturing capabilities, and supply agreements aimed at securing raw materials for future LFP production.
Source: Business Korea
