South Korea most likely to take the lead in lithium-ion battery race

Lithium-ion batteries are integral to fashionable life, powering our smartphones, laptops, electrical autos and numerous different devices and units. Because the world strikes in direction of renewable vitality and electrical transportation, the demand for higher performing and cheaper lithium-ion batteries is skyrocketing.

Patent evaluation reveals that South Korean firms are more likely to dominate the lithium-ion battery patent panorama within the close to future, surpassing Chinese language, Japanese and US corporations in each amount and high quality.

The significance of lithium-ion batteries

Lithium-ion battery expertise is a vital a part of three mega-trends: cell electronics, renewable vitality and electrical autos. It permits the transportable units which have turn out to be important to fashionable life and are crucial for storing vitality from renewable sources, comparable to photo voltaic and wind energy. Because the world transitions to wash vitality, huge storage capability shall be wanted to beat the intermittency of renewables. The batteries additionally make electrical autos doable; as electrical vehicles proceed to achieve market share, demand for high-performance and low-cost lithium-ion batteries is accelerating.

With a lot at stake, innovation in lithium-ion batteries is heating up.

Patent panorama improvement

Evaluation of patent filings and grants supplies a window into R&D actions and technological competitiveness. Nevertheless, research present that solely 20 to 40% of all patents have industrial worth. For that reason, along with amount metrics, the Patent Asset Index was utilized as a high quality measure to analyze market forces on this area.

Analytics present that the worldwide lithium-ion battery invention area has expanded massively by way of portfolio measurement and power over the previous 20 years – each have elevated 14-fold. The rising hole between the amount and the standard line means that the common high quality of lithium-ion patents has elevated over time and is indicative of a expertise race to enhance battery efficiency.

Shifting market forces

Simply 15 years in the past, Japanese firms accounted for nearly 80% of lithium-ion battery patents – as measured by the Patent Asset Index – and are nonetheless main with the strongest portfolios.

By heavy R&D funding and high-quality patenting, South Korea has moved from a portfolio power contribution of solely 8% in 2004 to 31% on the finish of 2023. China’s aggressive enhance within the relative share of portfolio power can also be noteworthy, particularly lately. South Korea and China present comparable dynamics in improvement of power and are evolving sooner than Japan, with Germany and america progressing at a good slower charge.

South Korea’s rise to turning into a key participant on this area has been regular however fast. If this development continues, the nation is more likely to take the highest place from Japan very quickly; we’ll, at the least, see a extremely aggressive head-to-head race between China, Japan and South Korea throughout the subsequent few years.

International high 10 lithium-ion battery patents by amount and high quality

The evaluation additional highlights that main Korean firms like LG Chem and Samsung SDI have sturdy positions in each metrics – amount (a-axis) and common high quality (y-axis) – contributing to an general enhance of their portfolio power (bubble measurement) of patents over time (see Determine 3). LG Chem has the most important and strongest patent portfolio, whereas CATL’s portfolio has the best common patent high quality (aggressive influence).

Different main gamers embody Panasonic, Toyota Motor, TDK, Murata Manufacturing, Samsung Electronics SK Innovation and Sumitomo Steel Mining.

South Korea reigns amongst high 10 patent homeowners

Lithium-ion battery innovation is extremely concentrated. The highest 10 firms account for 48% of the whole Patent Asset Index on this area, which signifies that general development is essentially pushed by only a few dominant gamers. Of those high 10, South Korean corporations maintain the best share at 29%, in comparison with 15% for Japanese organisations and 4% for Chinese language firms. LG Chem leads with the one greatest share, accounting for 17% of the highest 10’s whole patent power. The outsized contribution of those main Korean gamers demonstrates the nation’s ascendance as a lithium-ion battery innovation powerhouse and its stake within the high 10 displays its rise to the forefront of this crucial business.

South Korean firms within the high 100

There are a number of promising South Korean corporations among the many high 100 gamers. LG Chem and Samsung SDI have constructed massive high-quality patent portfolios that proceed to broaden, which defies the development of patent high quality lowering as portfolios develop – Hyundai Motor and Kia have seen their patent high quality decline barely lately as their portfolio sizes enhance. Nevertheless, Samsung, Posco and Ecopro are demonstrating spectacular momentum. Regardless of having smaller patent portfolios, they’ve quickly elevated patent high quality prior to now few years.

With each veteran and rising innovators, South Korea is effectively represented within the high 100 world lithium-ion battery patent holders. The nation seems to have a various base of firms driving progress on this crucial expertise.

Supporting the UN’s Sustainable Growth Objectives

These technological advances strongly align with a number of of the UN’s Sustainable Growth Objectives (SDGs). Lithium-ion innovation is extremely related for SDG 9 (constructing resilient infrastructure and selling sustainable industrialisation) and SDG 13 (pressing local weather change motion). Widespread adoption of lithium-ion storage helps expanded renewable vitality and electrical transportation, serving to to curb emissions.

Lithium-ion patents additionally contribute to SDG 7 (guaranteeing entry to reasonably priced and clear vitality) and SDG 12 (accountable manufacturing and consumption). By driving progress in inexperienced vitality and electrical autos, lithium-ion patent holders play a key function in sustainable improvement and have the potential to speed up the worldwide transition to an equitable low-carbon future, which helps the UN’s 2030 agenda.

With lithium-ion batteries sitting on the coronary heart of this world vitality transition, management on this area yields main financial and aggressive benefits. Japan and South Korea’s battery firms seem poised to leverage their hard-won patent dominance into additional success.

Holistic patent evaluation is required

Whereas massive patent portfolios seize consideration, smaller gamers also can drive significant innovation. For instance, Posco, Ecopro and Daejoo Digital Supplies have comparatively modest lithium-ion battery patent holdings, however evaluation of high quality benchmarks (eg, the Patent Asset Index) reveals that these firms are quickly growing patent competitiveness.

By solely assessing portfolio measurement, it’s simple to miss threats from centered gamers which are making quantum leaps via high-impact R&D. Monitoring high quality indicators exposes the rising stars – even these with smaller portfolios.

A holistic and nuanced evaluation that considers each patent amount and high quality will present a extra correct map of the aggressive panorama. This can foreground real expertise frontrunners and hidden IP disruptors, no matter portfolio measurement.