Market Overview

The South Korea battery market size reached a size of USD 2,643.4 Million in 2024 and is forecast to grow to USD 11,854.0 Million by 2033. This growth represents a CAGR of 18.10% during the forecast period from 2025 to 2033. The market expansion is primarily driven by the rapid growth of electric vehicles and advancements in energy storage technologies in South Korea.

Study Assumption Years

• Base Year: 2024

• Historical Year/Period: 2019-2024

• Forecast Year/Period: 2025-2033

South Korea Battery Market Key Takeaways

• Current Market Size (2024): USD 2,643.4 Million

• CAGR (2025-2033): 18.10%

• Forecast Period: 2025-2033

• The increasing use of renewable energy in South Korea requires efficient battery storage solutions to manage intermittent power supply, thereby encouraging market expansion.

• South Korea's focus on smart grids and energy management systems enhances grid reliability and accelerates market growth.

• Seoul Capital Area leads in R&D and manufacturing, while Yeongnam specializes in automotive battery production.

• Challenges include dependency on imported raw materials, but investment in local recycling and domestic production capabilities presents opportunities.

• South Korea is investing approximately US$15 Billion in rechargeable battery technology by 2030 to strengthen manufacturing and export competitiveness.

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Market Growth Factors

The increasing adoption of renewable energy in South Korea has boosted the need for efficient battery storage systems to manage the intermittent nature of renewable power sources. This growing demand for energy storage is a significant driver stimulating the battery market's expansion by enabling better integration of renewable energy into the grid.

South Korea's emphasis on the development of smart grids and energy management systems fosters the advancement of high-performance batteries. These batteries enhance grid reliability and resilience, helping maintain stable power supply and accelerating overall market growth by supporting modern energy infrastructure.

Investment in cutting-edge battery technologies, such as solid-state and cobalt-free batteries, is another critical growth factor. In April 2024, South Korea announced an investment of approximately US$15 Billion in the rechargeable battery sector by 2030. This initiative aims to improve technological capabilities, reduce reliance on traditional materials, and solidify the country's competitive position in battery manufacturing and exports.

Market Segmentation

• **By Type:**

• Primary Battery: Used in small electronics; represents basic energy storage devices important to diverse energy needs.

• Secondary Battery: Rechargeable batteries such as lithium-ion, essential for electric vehicles and energy storage systems, reflecting technological advancements.

• **By Product:**

• Lithium-Ion: Widely utilized rechargeable battery technology driving electric vehicle and energy storage growth.

• Lead Acid: Traditional battery type serving multiple applications.

• Nickel Metal Hydride: Used in various rechargeable applications.

• Nickel Cadmium: Another rechargeable technology.

• Others: Includes additional battery technologies supporting diverse energy needs.

• **By Application:**

• Automotive Batteries: Advanced batteries for electric and hybrid vehicles, a key market driver.

• Industrial Batteries: Powering industrial equipment and systems.

• Portable Batteries: Batteries used in consumer electronics and portable devices.

• **By Region:**

• Seoul Capital Area: Hub for automotive battery technology driven by extensive R&D and manufacturing.

• Yeongnam (Southeastern Region): Major focus on automotive battery production.

• Honam (Southwestern Region): Supports renewable energy storage solutions.

• Hoseo (Central Region): Emphasizes smart grid technology development.

• Others: Developing niche battery technologies and infrastructure for market growth.

Regional Insights

The Seoul Capital Area is the dominant region in the South Korea battery market, leading in research and development activities as well as manufacturing facilities. Alongside this, Yeongnam excels in automotive battery production, Honam focuses on renewable energy storage solutions, and Hoseo emphasizes smart grid technology, collectively strengthening South Korea's battery market position.

Recent Developments & News

• April 2024: South Korea announced a US$15 Billion investment in the rechargeable battery sector by 2030 to enhance technological advancements and competitive strength in manufacturing and exports.

• May 2024: Webasto expanded its EV battery pack production in Dangjin, South Korea, increasing annual capacity to 300,000 packs by 2025 to meet rising demand.

• August 2024: Government bodies in South Korea upgraded the electric vehicle battery certification scheme in response to recent EV fires, imposing stricter safety standards and requiring automakers to improve fire prevention measures.

Key Players

Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Customization Note:

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

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