[KH explains] Will CATL’s Korean push reshape battery alliance with Hyundai, Kia?

China’s CATL, the world’s largest battery maker for electric vehicles, is reportedly seeking a bigger footing in Korea, the home turf of its archrivals LG Energy Solution, Samsung SDI and SK On, and a crucial client, Hyundai Motor Group. According to industry sources, the Chinese company is reviewing setting up its Korean unit by upgrading the current office in Seoul that has been operational since 2011. The specific nature of the new operations has not yet been disclosed -- whether it would be a sales or production corporation -- but sources say the industry leader is likely to expand its presence in Korea, where its batteries have recently gained attention amid concerns over EV fires.

“There are only two or three staff at CATL’s Seoul branch. If it sets up a local, more people are expected to join, which means more business engagement especially with Hyundai and Kia,” said Park Cheol-wan, a car engineering professor at Seojeong University. Back in the limelight CATL’s No.

1 position has also been revisited after a massive fire in August involving a Mercedes-Benz EV that was found to have used cheaper batteries from a lesser known Chinese company, Farasis. At this week’s parliamentary audit, Mercedes-Benz Korea CEO Mathias Vaitl faced a barrage of questions over the fire and apologized for misleading consumers on the battery origin. The carmaker uses both CATL and Farasis batteries for its luxury EVs sold here but its dealers are suspected to have been trained .