Korean battery makers spent more on R&D than ever in 2025. CATL still outspent all three combined. Samsung SDI led the group with KRW 1.42 trillion ($1.0 billion) in R&D. That equals 10.7% of… | Christopher Chico

Korean battery makers spent more on R&D than ever in 2025. CATL still outspent all three combined. Samsung SDI led the group with KRW 1.42 trillion ($1.0 billion) in R&D. That equals 10.7% of revenue, the highest ratio among Korean makers. LG Energy Solution invested KRW 1.33 trillion ($930 million). SK On added KRW 312 billion ($220 million). The Korean Big 3 totaled KRW 3.06 trillion ($2.1 billion) for the first time. CATL spent RMB 22.1 billion ($3.2 billion) on R&D in 2025. Most see record R&D as a sign that the gap is closing, but what really matters is the scale behind the ratio. The Korean Big 3 generated roughly KRW 44 trillion ($31 billion) in combined revenue. CATL alone posted RMB 423.7 billion ($61.3 billion). The Korean Big 3 spent 7.0% of combined revenue on R&D while CATL spent 5.23%. The results: Higher intensity but lower investments from the Koreans. At half the revenue, a higher ratio still produces fewer research dollars. CATL reported RMB 72.2 billion ($10.5 billion) in net profit the same year. Samsung SDI posted a net loss of KRW 584.9 billion ($409 million). LG Energy Solution reported net income of KRW 80.8 billion ($57 million). SK On has not reported a full-year net profit since its spin-off. Koreans are ramping R&D intensity to historic levels and are not under-investing, yet CATL's scale advantage (larger revenue base, profitability, ecosystem) lets it outspend them in absolute terms while spending a lower % of revenue. That is what a 2x revenue gap does to an R&D race. -- Every week, I deliver in-depth analysis of the battery industry to 6100+ professionals: https://lnkd.in/eaBWN6uX