Korean, Japanese Battery-Makers Launch Legal Offensive Against Chinese Rivals’ Global Ambitions

South Korean and Japanese battery manufacturers are intensifying their legal efforts in Europe to defend against mounting competition from Chinese competitors in the battery industry. Tulip Innovation, a patent management company jointly established by LG Energy Solution Ltd. and Panasonic Energy Co. Ltd., recently secured injunctions in Germany against subsidiaries of Chinese battery-maker Sunwoda Electronic Co. Ltd., stopping them from selling certain battery products in the country due to infringement of two patents relating to battery separator technology. Sunwoda has stated its intention to appeal these rulings and has filed a countersuit to invalidate the patents in question. These are reportedly the first injunctions relating to car batteries in Germany and are intended to signal that leading battery technology can’t be freely used without proper licensing [para. 1][para. 2][para. 3][para. 4].

The creation of Tulip Innovation is a strategic maneuver to slow the rapid expansion of Chinese battery giants like Contemporary Amperex Technology Co. Ltd. (CATL) into the European market, where South Korean and Japanese incumbents have been feeling increasing pressure. Industry experts note that such patent lawsuits can be a significant financial and operational burden, possibly resulting in costly settlements for the targeted companies [para. 5][para. 6].

The global battery sector, historically led by firms from China, Japan, and South Korea, saw Japanese and Korean firms advance globally earlier. For instance, LG Energy Solution started supplying batteries to General Motors in 2009 and set up overseas production plants in the U.S. by 2012 and in Poland by 2017. Panasonic partnered with Tesla to build a large battery factory in Nevada in 2014, and SK On established a European plant in Hungary in 2017. Meanwhile, CATL, a leading Chinese player, drew attention in 2020 by securing a battery supply deal for Tesla’s Shanghai Gigafactory. CATL encouraged a shift to lithium iron phosphate (LFP) batteries—considered safer and more cost-effective—leading to widespread industry adoption [para. 7][para. 8][para. 9][para. 10].

Chinese automakers’ aggressive overseas exports—adding about 1 million exported units annually since 2021—have driven the international proliferation of Chinese-made batteries, particularly from CATL. As of the first four months of 2025, CATL held a commanding 38.1% share of the global EV battery installation market, surpassing the combined 20.8% share of major South Korean and Japanese competitors. CATL has a significant presence in Europe, operating a factory in Thuringia, Germany, with local customers including BMW and Mercedes-Benz. The company is also constructing a major plant in Hungary (costing 7.34 billion euros), as well as a 4.04 billion euro joint venture for an LFP battery factory in Spain, expected online by 2026. Across three facilities, CATL’s investment in Europe now exceeds 13.2 billion euros [para. 11][para. 12][para. 13][para. 14].

Faced with this surge, Japanese and Korean incumbents are countering Chinese expansion through legal channels. In April 2024, LG Energy Solution announced plans for more aggressive action against patent infringement in Europe, having already identified over 30 potential violations in competitor products. The establishment of Tulip Innovation in May 2024 intends to pool essential battery technologies and offer licenses to third parties, in a move to protect proprietary innovations [para. 15][para. 16].

Yet, despite CATL’s robust global patent portfolio (over 17,000 patents), experts observe that Chinese companies lag behind their Japanese and Korean counterparts in global legal and talent infrastructure, due to their historical reliance on a vast domestic market. To achieve true global success, Chinese companies like CATL are urged to invest not only in production, but also in legal, IP, and risk management frameworks [para. 17][para. 18][para. 19][para. 20][para. 21][para. 22].