Producers of Electric Vehicle batteries are critical suppliers supporting the increasing demand to decarbonize transportation. The top global EV battery manufacturers are CATL (China) and LG (South Korea). CATL has a 45% market share; its largest buyers are Tesla, Honda, BMW, Toyota, and Volkswagen. With a 15% market share, LG's largest buyers are Hyundai and Peugeot. Other EV battery manufacturers are significantly smaller, with a single-digit market share. Comparing the two companies, we see similarities in Willingness to Supply (WTS), Costs, and major technical attributes of the lithium-ion battery. CATL, however, has been the industry leader for the past decade. The perception is that CATL's EV batteries are more reliable, safer, and have a higher energy density, resulting in significantly higher Willingness To Pay (WTP) than similar LG batteries.

What should be the strategic position of LG? How should LG respond as far as pricing and product offerings?