As demand for rectangular batteries in the global automotive industry increases, competition for orders among domestic battery companies is intensifying. The rectangular batteries, which have a rectangular can shape, are in higher demand due to their durability and safety. Their production process is simple, and they have a lower unit cost, making mass production advantageous.
According to industry insiders on the 15th, Tesla, a U.S. electric vehicle company, is reportedly pushing to procure rectangular batteries from domestic battery corporations. Tesla, which has primarily used cylindrical batteries, has been equipping some models, such as the Model 3, with rectangular batteries from China's CATL, and it is interpreted that the company requested product development from domestic firms to diversify its customer base.
Demand for rectangular batteries in the global automotive industry is steadily increasing. Companies such as BMW, Mercedes-Benz, Stellantis, and Volvo mainly adopt rectangular batteries and are gradually increasing their proportions. The Volkswagen Group has announced plans to raise the proportion of rectangular batteries to about 80% by 2030. General Motors (GM), Ford, and Genesis have also indicated plans to adopt rectangular batteries.
The three domestic battery companies, which had each focused on different types of batteries, have also begun targeting the rectangular battery market. While Samsung SDI has been the only company to mass-produce rectangular batteries, LG Energy Solution, which has strengths in cylindrical and pouch batteries, and SK On, which has focused on pouch batteries, are preparing for full-scale supply after completing their rectangular battery development.
Samsung SDI is focusing on improving its market dominance by securing new customers while enhancing safety and upgrading its production processes. Recently, it reflected technology to prevent thermal propagation between adjacent battery cells in its product design. It has also developed the so-called cell-to-pack (CTP) technology, which eliminates the module process and directly assembles cells into packs. The goal is to reduce battery weight while improving energy density and expense efficiency.
LG Energy Solution has agreed to jointly develop rectangular batteries with GM, and they plan to equip GM's next-generation large electric sport utility vehicles (SUVs) and trucks by 2028. SK On, which is accelerating mass production of rectangular batteries, is mentioned to have Geely Group, its strategic partner, as the primary supplier. Geely Group owns brands such as Volvo, Polestar, and Lotus, in addition to Geely.
Compared to pouch batteries, rectangular batteries have simpler processes and lower production costs, making mass production easier. However, a drawback is that the product is heavy and has a lower energy density, resulting in shorter driving ranges for electric vehicles.
According to market research firm SNE Research, the share of rectangular batteries in the global electric vehicle battery market rose from around 50% in 2021 to 77% last year. Demand for rectangular batteries is increasing, particularly in China and Europe. In China, it is reported that the share of rectangular batteries already exceeds 90%.