Why Korea Dominates EV Batteries

South Korea is home to three of the world’s top EV battery manufacturers, collectively known as the K-Battery trio:

  1. LG Energy Solution (373220) — World’s second largest EV battery maker
  2. Samsung SDI (006400) — Premium batteries for BMW, Stellantis
  3. SK On (subsidiary of SK Innovation 096770) — Batteries for Ford, Hyundai

Together, these three companies supply batteries to most major global automakers.

The K-Battery Supply Chain

Korea’s battery ecosystem extends beyond the three cell makers:

Cathode Materials

  • POSCO Future M (003670)
  • Ecopro BM (247540)
  • L&F (066970)

Anode Materials

  • POSCO Future M
  • OCI Holdings

Separators

  • SK IE Technology (361610)
  • Toray Advanced Materials Korea

Electrolytes

  • Enchem (348370)
  • Dongwha Enterprise

Key Metrics for Battery Stocks

When analyzing Korean battery companies, watch for:

  • Order backlog (수주잔고): Forward visibility into revenue
  • Capacity expansion (증설): Gigafactory announcements
  • Customer concentration: Diversification across automakers
  • Raw material costs: Lithium, nickel, cobalt price impact
  • Yield rates: Manufacturing efficiency

Risks to Watch

  1. Chinese competition: CATL and BYD gaining market share
  2. EV demand slowdown: Western EV adoption slower than expected
  3. Customer mix shifts: Automakers shifting battery strategies
  4. Raw material price volatility: Lithium price swings significantly impact margins
  5. Overcapacity concerns: Aggressive expansion meeting uncertain demand

How to Screen K-Battery Stocks with pykrx

from pykrx import stock

# Korean battery sector tickers
battery_stocks = {
    "373220": "LG Energy Solution",
    "006400": "Samsung SDI",
    "096770": "SK Innovation",
    "003670": "POSCO Future M",
    "247540": "Ecopro BM",
    "361610": "SK IE Technology"
}

today = "20241231"
for ticker, name in battery_stocks.items():
    try:
        fundamentals = stock.get_market_fundamental_by_date(
            today, today, ticker
        )
        print(f"{name}: PER={fundamentals['PER'].iloc[-1]:.1f}")
    except:
        print(f"{name}: Data not available")

ETF Alternative

If individual stock picking feels risky, consider:

  • TIGER 2차전지테마 (305540): Diversified EV battery ETF on KRX
  • KODEX 2차전지산업 (sektr): Another diversified option