[EV Trend] Popularization from 'performance-oriented NCM battery' to 'cost LFP battery'

*This content was translated by AI.

Starting in 2025, Korea's electric vehicle market has faced a rapid paradigm shift from 'performance-oriented' to 'substantial popularization'. According to the settlement data of the Korea Automobile Mobility Industry Association (KAMA) and KAZU Data Research Institute, the number of new electric vehicles registered in Korea jumped about 50.1% year-on-year to 221,177 units last year, a new all-time high.

At the center of this explosive growth was the activities of lithium iron phosphate (LFP) battery-mounted models that led the so-called "half-price electric vehicle" craze. In particular, Tesla, a powerhouse in the imported car market, posted overwhelming sales of 50,405 units based on a single model with the LFP battery-based "Model Y RWD" produced at the Gigafactory in Shanghai, China, accounting for 26.6% of the market share. This is an example of proving that domestic consumers have a strong preference for LFP batteries with high fire stability and good price access, even if the mileage is somewhat short.

In line with these changes, domestic automakers also actively introduced LFP batteries and engaged in a fierce water race. Kia ranked first in the market share of each manufacturer last year with sales of 60,609 electric vehicles of all brands, and the top contributors were entry-level models equipped with LFP batteries. More than 12,000 Ray EVs, which led to the popularization of entry-class electric vehicles, were sold, while the strategic model EV3 launched in the second half of the year sold about 21,212 units, settling into the mainstream of the market in a short period of time.

Hyundai Motor has also gained ground in the small electric vehicle market with sales of 8,519 units through Casper Electric. On the other hand, models equipped with nickel, cobalt, and manganese (NCM) ternary batteries, which were the mainstream of the existing market, focused on protecting the high-performance premium market. Hyundai Motor's Ioniq 5 showed off its status as a steady seller with sales of about 18,000 units, while Kia EV6 also maintained solid demand with 9,368 units sold. Genesis-branded GV60 and G80 electric models, and Kia EV9, a large SUV, adhered to the high-end strategy based on the strong output and long-distance driving performance of NCM batteries, but showed relatively modest growth in terms of sales volume, trailing the momentum of entry-level LFP models.

As a result, the Korean electric vehicle market in 2025 was a year when the 'polarization phenomenon' according to the type of battery became clear. Although NCM battery vehicles, which still have a high cumulative share, still dominate the total sales, the proportion of LFP battery-equipped models among newly registered vehicles jumped more than 110% year-on-year, exceeding 30% of the market. In particular, China's production volume, including Tesla, rose 112.4% year-on-year to 74,728 units, leading to a drop in domestic EV share from 75% in 2022 to 57.2% in 2025.

Industry experts believe the trend will continue in 2026, and even though the ministry's subsidy reform is designed to favor energy-dense NCM batteries, consumers are becoming more inclined to prefer LFP battery models that can reduce initial purchase costs. In the future, how quickly the domestic automobile industry will build its own LFP battery supply chain and secure price competitiveness amid the wave of Chinese LFP batteries is expected to be a key watershed in the battle for electric vehicle supremacy.

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*This content was translated by AI.