EV Batteries and Charging: LFP, Solid-State, CATL, LG — 2026-09-05
SK On secured a massive 9 GWh ESS battery supply contract in the US, marking a significant pivot from EVs to energy storage to offset demand softness. Meanwhile, CATL issued a warning regarding batch failures in China’s rapidly expanding EV market, while global battery installation data confirmed CATL's continued dominance with nearly 40% market share.
EV Batteries and Charging: LFP, Solid-State, CATL, LG — 2026-09-05
Top developments
SK On secures 9 GWh US ESS contract worth ~$1.1 billion
SK On announced a major supply agreement with NeoVolta Power, a US-based energy storage developer, to deliver 9 GWh of Lithium Iron Phosphate (LFP) battery cells over five years starting in 2027. The deal, estimated at 1.5 trillion KRW (~$1.1 billion), is SK On’s largest overseas order this year and helps meet half of its annual overseas ESS target of 20 GWh. This move underscores Korean battery makers' strategic shift toward energy storage systems (ESS) to counteract the "EV chasm" or slowing electric vehicle demand
CATL warns of batch failures amid rapid EV launch pace
CATL has raised concerns about potential systemic battery failures in China’s EV sector, where manufacturers are launching nearly three new models per day. The battery giant emphasized its internal quality control target of one-in-a-billion cell defects to mitigate risks associated with rushed production cycles and new vehicle introductions. This warning highlights the tension between rapid innovation in China’s competitive EV market and the rigorous safety standards required for long-term battery reliability
Global battery market share: CATL leads, Korean firms face headwinds in non-China markets
According to SNE Research data for H1 2026, CATL maintained its global dominance with 39.9% market share, while BYD followed with 14.4%. In contrast, Korean makers like Samsung SDI saw their non-China installations drop by 29.0% year-on-year to 10.5 GWh, with market share falling to 3.9%. The data reflects the growing strength of Chinese domestic supply chains and the challenges Korean firms face in penetrating non-Chinese markets against rising local competition and Chinese exports
Local view
In South Korea, media outlets are highlighting the resilience of the domestic battery industry through the ESS boom. Maeil Business Newspaper reports that SK On’s recent contract is a critical "breakthrough" strategy to overcome the EV slowdown, noting that the company is converting EV production lines in Georgia to support ESS output. Yonhap Midas notes that all three major Korean battery firms (LG Energy Solution, Samsung SDI, and SK On) have returned to profitability, driven largely by the robust demand for energy storage in the US and Europe
Context & numbers
- SK On Contract: 9 GWh LFP cells, ~$1.1 billion value, 5-year term starting 2027
- CATL Market Share: 39.9% global share in H1 2026
- BYD Market Share: 14.4% global share in H1 2026
- Samsung SDI Non-China Installations: 10.5 GWh in H1 2026, down 29% YoY
On the radar
- BYD Q3 Earnings: Scheduled for November 4, 2026. Investors will watch for updates on battery capacity constraints mentioned in recent reports about new model launches
- US Battery Import Trends: Reports indicate US lithium-ion battery imports are recovering, driven by ESS demand, which continues to benefit Korean suppliers like LGES and Samsung SDI
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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