Despite a slowdown in the growth of electric vehicles, it was revealed that the usage of electric vehicle batteries increased by 38.6 percent last year compared a year earlier. Chinese companies CATL and BYD jointly secured the top two positions in the global market. The market share of South Korea’s top three battery manufacturers recorded 23.1 percent, marking a decrease of 1.6 percentage points compared to the previous year.
According to market research firm SNE Research on Feb. 7, the total battery usage in electric vehicles, including plug-in hybrid electric vehicle (PHEV), and hybrid electric vehicle (HEV), registered worldwide from January to December in 2023 amounted to approximately 705.5 gigawatt-hours (GWh), representing a 38.6 percent increase compared to the same period in the previous year.
By company, CATL from China secured the top spot with a market share of 36.8 percent. It experienced a growth of 40.8 percent compared to the previous year. CATL not only serves the domestic market in China but also supplies batteries to global automakers such as Tesla Model 3/Y, BMW iX, and Mercedes EQS, maintaining a strong market presence.
BYD secured the second position with a market share of 15.8 percent. It recorded an impressive growth rate of 57.9 percent. The company has established vertically integrated supply chain management (SCM) encompassing battery supply and vehicle manufacturing, ensuring price competitiveness.
LG Energy Solution secured the third position with a market share of 13.6 percent, showing a 33.8 percent increase from the previous year. The company supplies batteries to popular vehicles in both Europe and North America, including models such as the Tesla Model 3/Y, Volkswagen ID series, and Ford Mustang Mach-E.
SK on recorded a market share of 4.9 percent, securing the fifth position, while Samsung SDI claimed the seventh position with a market share of 4.6 percent.
SK on is currently supplying batteries for Hyundai’s Ioniq 5 and Kia’s EV6 and EV9, as well as Ford’s F-150 Lightning. Recently, SK on has reportedly made significant progress in developing prismatic, LFP batteries, which are in high demand in the market. Therefore, it is anticipated that the company will expand its market share, particularly in the North American region, in the future. Samsung SDI supplies batteries for BMW’s iX, i4 and i7, Audi’s Q8 e-tron, Fiat’s 500e, and Rivian’s R1T and R1S.
Panasonic of Japan ranked fourth with a market share of 6.4 percent, while CALB of China ranked sixth with a market share of 4.7 percent.
Panasonic, one of Tesla’s main battery suppliers, saw a growth of 26.0 percent compared to the same period last year. A significant portion of Panasonic’s battery usage comes from Tesla’s Model Y in the North American market. Panasonic is reportedly planning to launch improved 2170 and 4680 cylindrical batteries.
Despite the advancement of South Korean companies over the past year, they have not been able to match the quantitative growth of Chinese companies. BYD ranked third with a market share of 13.9 percent in 2022, but it rose to second place this year, surpassing LG Energy Solution. The rankings of CALB and Samsung SDI have also been reversed. Among the top 10 companies, there are six Chinese companies, three South Korean companies, and one Japanese company.
In 2023, the electric vehicle market faced a “chasm” situation where the initial demand led by early adopters tapered off due to the convergence of high interest rates, high inflation, and economic downturn, resulting in stagnant growth. Major electric vehicle manufacturers are adjusting their production volumes, and the profitability of battery-related companies has also declined due to the drop in prices of key minerals used in secondary batteries.