K-Battery Annual R&D Investment Surpasses 3 Trillion Won for the First Time, Countering China with ‘Future Technology’
All-solid-state batteries. (Photo courtesy of helot.net)
While China’s CATL is widening the gap with K-Battery by investing 22.1 billion yuan (approximately 4.77 trillion won or $3.29 billion) in research and development (R&D) last year, Korea’s three major battery companies are also countering with record-level R&D investments. Even amid slowing electric vehicle demand (chasm), they have chosen to expand rather than reduce investments, opting for a head-on breakthrough through ‘technology competition.’
According to business reports from LG Energy Solution, Samsung SDI, and SK On dated March 17, LG Energy Solution invested 1.3275 trillion won, Samsung SDI invested 1.4209 trillion won, and SK On invested 312.2 billion won in R&D last year, respectively. These figures represent increases of approximately 22%, 9.5%, and 12.7% compared to the previous year, respectively. The combined R&D investment of the three companies reached 3.0606 trillion won, a significant increase from the previous year (2.6626 trillion won), surpassing 3 trillion won for the first time.
R&D investment has actually expanded even as the electric vehicle market’s growth has slowed and the battery industry has stagnated. This is interpreted as the industry placing greater emphasis on securing mid-to-long-term technological competitiveness rather than short-term performance. In fact, all three companies have been steadily increasing their R&D investment since 2023, accelerating the pace of technology accumulation. This appears to reflect the judgment that technology gaps could directly translate into performance differences when demand recovers in the future.
However, differences emerge in investment ‘intensity.’ The R&D-to-revenue ratio was highest at Samsung SDI with 10.7%, followed by LG Energy Solution at 5.6%, and SK On at 0.55%. While LG Energy Solution and Samsung SDI are investing similar absolute amounts, Samsung SDI is taking a more aggressive strategy in terms of revenue ratio. Although SK On’s ratio has decreased, it has maintained investment in the 300 billion won range since 2023, gradually building its R&D capacity.
R&D directions also differ slightly among the companies. LG Energy Solution is building a battery R&D system integrated with artificial intelligence (AI) and focusing on securing next-generation technologies such as all-solid-state batteries. Samsung SDI is strengthening its premium strategy, centering on the development of high-energy-density batteries and all-solid-state batteries. SK On is concentrating its research capabilities on securing competitiveness in materials and manufacturing technologies, including high-nickel cathode materials, silicon anode materials, and dry electrode processes.
While Korean companies are increasing their R&D investment, the gap with global leader CATL remains significant. CATL’s R&D investment last year reached 22.1 billion yuan (approximately 4.77 trillion won), far exceeding the combined investment of Korea’s three major companies. Its cumulative R&D investment over the past 10 years has surpassed 90 billion yuan (approximately 19.48 trillion won), and its R&D workforce of 22,901 is approximately seven times the average of Korea’s three companies. This indicates that the gap exists not only in terms of amount but also in workforce and ecosystem.
Based on such aggressive investment and production expansion, CATL is further strengthening its market dominance. According to market research firm SNE Research, CATL maintained the top position in the global electric vehicle battery market with a 39.2% market share for nine consecutive years last year, and also ranked first in the ESS battery market with 30.4% for five consecutive years. Its lithium-ion battery sales volume also reached 661 GWh (gigawatt-hours), a 39.2% increase compared to the previous year.
Industry observers believe that while CATL is likely to maintain its advantage for the time being by leveraging its scale and supply chain competitiveness, the commercialization of next-generation batteries such as all-solid-state batteries will mark a new inflection point in competition. The analysis suggests that opportunities may open up for Korean companies particularly if technological differentiation, rather than price competitiveness, emerges as a full-fledged competitive variable. At the same time, competition for leadership is expected to intensify in new technology areas such as sodium-ion batteries.
This trend has also been confirmed on the ground recently. At ‘InterBattery 2026’ The Battery Conference held at COEX in Seoul on the 11th, the CTOs of Korea’s three major battery companies all emphasized R&D strategies centered on next-generation technologies. Kim Je-young, Chief Technology Officer (CTO) of LG Energy Solution, stated, “The battery industry is in an environment of rapid change and fierce competition,” adding, “We are introducing AI agents throughout our R&D to enhance R&D competitiveness, and we will continue to expand this further in the future.”
Michael Herh
pr@businesskorea.co.kr
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