CATL and BYD deliver 53.5% of the world’s EV batteries

According to figures from Korean consultancy firm SNE Research, from January to July 2024, batteries for electric vehicles (EV, PHEV, HEV) registered worldwide represented approximately 510.1 GWh of energy, a 21.7% growth compared to the year before.

China’s biggest battery cell makers, CATL, with a market share of 37.1%, and BYD, with 16.4%, strengthened their dominant position by delivering 53.5% of the world’s EV batteries. In comparison, South Korean LG Energy Solutions does its best to keep up in third place with 12.1%.

The top ten battery makers worldwide remain predominantly Chinese, except for three Korean companies, LG, SK On, and Samsung SDI, and one Japanese battery cell maker, Panasonic. The Chinese are progressing globally, and the number of electric vehicles with cheaper LFP batteries has increased.

Expected to remain dominant

“As the Chinese companies already predominated the LFP battery market, it is expected that they would maintain the current level of domination – almost similar to monopoly – for a while,” analysts at SNE Research say.

CATL remains the undisputed leader, with a 27.2% (189.2 GWh) year-over-year growth and an increase in its market share from 35.5% to 37.1%. Locally, brands like Zeekr, Aito, and Li Auto that use the CATL battery helped to push forward, as did good sales of the Tesla Model 3 and Y, BMW iX, the Mercedes EQ series, and the VW ID series.

China’s number one battery maker wants to intensify its global expansion efforts to sustain its growth amid increasing competition in China’s EV market. CATL believes it can only maintain its dominant position by focusing on international markets.

CATL will add two new overseas plants, bringing its total scheduled overseas facilities to eight. These new facilities include a joint venture with Stellantis in Spain and a potential battery cathode materials facility in Morocco to supply its European battery plants.

BYD moving up

Its biggest competitor, BYD, which realized a 25.6% (83.9 GWh) YoY growth, is closing in, taking a 16.4% market share compared to 15.9% last year. Founded in 1995 as a rechargeable battery company, BYD emerged as the world’s second-biggest electric carmaker, close on Tesla’s heels and now and then overtaking it.

BYD’s battery subsidiary, FinDreams, delivers batteries for several Chinese brands and Tesla’s Shangai gigafactory. Beginning this year, American automotive supplier BorgWarner signed an eight-year partnership deal with BYD-FinDreams.

It will be the only non-OEM localized manufacturer, unaffiliated with FinDreams Battery, with rights to localize LFP battery packs for commercial vehicles utilizing FinDreams’ blade cells in Europe, the Americas, and ‘select regions’ of Asia Pacific.

Koreans relying on EU and US sales

The number three in the world, South Korean LG Energy Solution saw an upward trend in the usage of its battery equally as EV models popular in Europe and North America – the Hyundai Ioniq 6 and Kona Electric, Tesla Model 3 and Y, VW ID.4, Ford Mustang Mach-E, and GM Cadillac Lyriq – sold reasonably well.

Among Korean battery makers, Samsung SDI showed the highest growth (+9.2%), profiting from good sales of the German BMW i4, i5, and i7 and American Rivian R1S and R1T. Samsung ranks 7th globally with a 4.2% market share.

The other Korean manufacturer, SK On, ranked fourth behind LG, with a 4.8% share. Its success is credited, among other things, to the Hyundai Ioniq 5, the Kia EV6 and EV9, the Mercedes EQA and EQB, and the Ford F-150 Lightning.

Japanese Panasonic losing terrain

Panasonic, the only Japanese battery cell maker in the ranking, saw a 22.5% degrowth this year. It took sixth place with a 4.4% market share, down from 6.9% in 2023.

According to SNE Research, “the primary reason for Panasonic’s degrowth was a slowdown in sales of the Tesla Model 3 due to its transformation to the facelifted version earlier this year.

As sales of Model 3 have recently expanded and Panasonic was reported to launch advanced 2170 and 4680 cells supplied to Tesla, Panasonic is expected to regain its market share, mainly focusing on Tesla rapidly.”