South Korean battery makers are competing for technology for the cylindrical battery market. Samsung SDI is planning to expand its cylindrical battery, which has 91% nickel content applied to power tools, to electric vehicles. In addition, LG Energy Solution will commercialize 90 percent of nickel batteries for the first time in the world in the new year, and SK Innovation will also participate in the cylindrical battery market, signaling fierce competition.

Samsung SDI's main source of demand for cylindrical batteries is power tools. Since entering the battery market for power tools, which was dominated by Japanese companies in 2005, Samsung SDI has supplied batteries to all four major manufacturer power tool companies such as Bosch, TTi, Stanley Black & Decker, and Metabo. It has been ranked first for nine consecutive years with around 50% share since 2013.

Samsung SDI is also going to strengthen markets for cylindrical batteries for electric vehicles. This is because finished car manufacturers, which used to mainly adopt medium and large pouches, began to adopt cylindrical batteries starting with Tesla.

Samsung SDI is planning to expand application of 91% of nickel batteries to electric vehicles. It is going to mass-produce electric vehicles by verifying performance of electric tools. Samsung SDI is preparing to equip electric vehicles with 88% of nickel batteries. It is planning to target markets for electric vehicle batteries with cylindrical batteries that increase nickel content to 90% in the future.

Competition for technologies in cylindrical electric vehicle battery markets is in full swing. Samsung SDI and LG Energy Solutions are forming competitive structures in markets for cylindrical electric vehicle batteries. In particular, LG Energy Solution plans to supply 90 percent nickel, cobalt, manganese, and aluminum (NCMA) batteries for electric vehicles for the first time in the world in the new year.

There is a high possibility that SK Innovation will compete in the market. Ji Dong-sup, CEO of SK Innovation's battery division, also expressed his intention to participate in the cylindrical battery market at the recently held Interbattery 2020. When SK Innovation enters the cylindrical battery market, competition in the cylindrical electric vehicle battery market between the three battery companies is expected to intensify.

SNE Research, a research firm in the electric vehicle battery market, analyzed that the size of the cylindrical electric vehicle battery market will grow by an average of 20% every year from 76.4 GWh this year to 150 GWh in 2023.