In this article, we will be taking a look at the 12 biggest battery manufacturers in the world. To skip our detailed analysis of the battery market, you can go directly to see the 5 Biggest Battery Manufacturers in the World.
With the increasing shift towards electric vehicles (EVs), the global demand for batteries has seen major amounts of growth. According to the Wall Street Journal, the global sales of electric vehicles reached around 7.8 million which accounted for around 10% of the total auto sales for the year. The number of electric vehicles sold in 2022 saw a 68% increase from 2021 according to research from LMC Automotive and EV-Volumes.com. Meanwhile, the market share of electric vehicles was 11% of total car sales in Europe and 19% of total car sales in China. However, when plug-in hybrid vehicles which also have a small combustion engine are taken into account, the market share of electric vehicles in Europe increases to 20.3%. While the share of completely electric vehicles in the United States was lower at 5.8% in 2022, it was still a major jump from 3.2% in 2021.
The increase in market share for electric vehicles is projected to continue. According to a report prepared by BloombergNEF, the market share of electric vehicles is projected to reach 40% by 2030. This rise is directly correlated with a projected increase in battery manufacturing. Atlas Public Policy has estimated that the investments in battery manufacturing in the United States alone reached $73 billion in 2022 which was three times as high as the investments in 2021. BloombergNEF also pointed out this trend in the rise of battery manufacturing, citing a 38% rise in battery manufacturing capacity since 2021.
While the investments in battery manufacturing have been global, the market is still dominated by China. The New York Times estimates that China produces about 75% of all electric vehicle battery cells and does more refining of the major raw inputs than every other country in the world combined. It also had more electric vehicles sold than the rest of the world combined along with exports of electric vehicles rising to $3.2 billion in worth by November 2022. The country has 5 of the largest EV battery makers in the world according to market share.
These battery manufacturers dominate the market, with the top 10 battery manufacturers accounting for more than 90% of the market share while the top 5 battery manufacturing companies account for around 75% of the total market share. According to a report by Goldman Sachs, the top six players in the cell manufacturing market will continue to dominate the market shares through 2030, when they will have a projected 61% market share despite a much larger market with more producers. The report also predicts that the total addressable market for batteries will grow to 2.8 TWh by 2030. While the production of batteries increases, it is also projected that battery prices will decrease due to the introduction of battery innovations that aim on reducing the costs of production via more efficient processes as well as cheaper outputs. Like other battery and automotive manufacturers such as Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and General Motors Company (NYSE:GM), the battery manufacturers listed below are revolutionizing the automotive industry today.
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Let's now take a look at the 12 biggest battery manufacturers in the world.
Our Methodology
In order to shortlist these companies, we took a look at all the major battery manufacturing companies in the world. Next, we looked at the latest market share numbers for each of these companies according to a press release by SNE Research. We shortlisted two other companies based on their market shares in 2021.
12. Farasis Energy (Gan Zhou) Co., Ltd.
Market share as of July 2022: NA (1% in 2021)
Farasis Energy (Gan Zhou) Co., Ltd. is a battery manufacturing company focused primarily on the research, development, and commercialization of lithium-ion power batteries for electric vehicles based in China. It also provides integrated solutions for new energy vehicle manufacturers.
The company is the designated battery supplier of Jiangling Motors Electric Vehicle and was the second main supplier for GAC Aeon, providing batteries for the Aion S and Aion V along with a few other models.In 2021, it ranked 10th with 2.91 GWh of power battery installed and accounted for 1% of the global market share. It has also released its new sodium-ion batteries in order to diversify its products and cater to different consumers. For the first 9 months of 2022, it generated a revenue of $1.2 billion.
While Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and General Motors Company (NYSE:GM) are more conventional names investors are interested in when it comes to the automotive and battery industries, Farasis Energy (Gan Zhou) Co., Ltd. is a rising player worth taking a look at.
11. Envision AESC
Market share as of July 2022: NA (2% in 2021)
Envision AESC is another manufacturer of lithium-ion batteries for electric vehicles and was a joint venture of Nissan Motor Company, Ltd., NEC Corporation, and NEC Tokin Corporation and is based in Zama, Japan.
The company is one of Benchmark's Tier One battery suppliers and became Renault's strategic partner for full electrification in June 2021 with a five-year purchase order of 40GWh to 120GWh power batteries. It is also the battery supplier for Nissan Motor Co., Ltd.'s EVs and has begun construction of its second battery factory in the United Kingdom. Its first plant operates 1.9 GWh since 2012 while the second plant is expected to have an annual capacity of 12GWh once it is on stream in 2025 and is forecasted to expand up to 25GWh by 2030. Envision AESC announced that its latest generation batteries will have 30% higher energy density and plan to provide enough batteries for 100,000 EVs annually. It has also announced to build gigafactories in Douai, France, the United States, Japan, and Spain with an aim to reach a capacity of 300GWh by 2026.
10. Svolt Energy Technology Co., Ltd.
Market share as of July 2022: 1.3%
Svolt Energy Technology Co., Ltd. is a manufacturer and distributor of electric vehicle batteries based in Jiangsu, China. It also produces cathode materials and energy storage systems in its 12 global manufacturing bases.
In 2021, Svolt Energy Technology Co., Ltd. had a capacity of 2.42GWh but has announced an annual capacity target of 600 GWh by 2025. Currently, the company supplies a number of automobile manufacturers including Dongfeng Motor Group Co., United New Energy, XPeng Inc., and Geely Automobile Holdings, and has partnered alongside Sunwoda Electronic Co., Ltd. to set up dedicated production lines to manufacture Li Auto's self-developed battery packs. It has also announced plans to build a lithium-ion cell factory in Germany by the end of 2023. The company was given the go-ahead to go public on the Shanghai Stock Exchange's Star Market in November 2022 with an expectation of raising $2.1 billion and plans to invest the proceeds to expand its production capacity in 3 projects alongside an expansion of its research and development. The company announced its new battery technology, the Dragon Armor battery packs, with an expected range of up to 1,000 km. In the first half of 2022, it generated a revenue of $516.7 million.
9. Sunwoda Electric Vehicle Battery
Market share as of July 2022: 1.5%
Sunwoda Electric Vehicle Battery is a subsidiary of Sunwoda Electronic Co., Ltd. and is based in Shanghai, China. The company provides electric vehicle battery pack solutions through its advanced lithium battery integration technology and supplies its products to automobile manufacturers including Volvo Car AB, Dongfeng Motor Group Co., and XPeng Inc.
It has recently also partnered with the Dongfeng Motor Group to build a battery factory in Yichang with a production capacity of 30GWh and has also announced battery factories in Zhuhai and Shifang cities with annual capacities of 30GWh and 20GWh respectively. Sunwoda Electric Vehicle Battery also raised around $870 million (6 billion Yuan) from funds in August and had a revenue of around $1.14 billion in 2022.
8. Gotion High-tech Co., Ltd.
Market share as of July 2022: 2.9%
Gotion High-tech Co., Ltd. is another developer and manufacturer of lithium-ion batteries based in Anhui, China. It also specializes in energy storage applications, power transmission, and distribution equipment and became the first publicly traded power battery company in China in 2015.
It provides batteries for a number of major original equipment manufacturers including Volkswagen AG, Changan Automobile, Great Wall Motors, and Geely Automobile Holdings. The company had a revenue of around $1.99 billion in the first three quarters of 2022, a year-on-year growth of 152%. In the third quarter, it had an operating income of around $840 million and a net profit attributable to shareholders of around $120 million which was a 355% increase compared to last year. The company has also signed an MoU with a Slovakian company to co-establish a battery factory with an annual capacity of 40GWh by 2025.
7. CALB Group Co., Ltd.
Market share as of July 2022: 4.1%
CALB Group Co., Ltd. is a producer of lithium-ion power batteries, energy storage systems, battery management systems, and related products based in Jiangsu, China. The company is also known as China Aviation Lithium Battery Technology and was founded in 2007.
The company recently became an official supplier to Japan's Honda Motor Co. and already has major automotive customers including XPeng Inc.m GAC Toyota, Geely Automobile Holdings, and NIO Inc. CALB Group Co., Ltd. has seen an enormous growth of 321% between 2016 and 2020 and produced 11.9GWh in 2022. The company also had a $1.7 billion listing in the Asian financial hub according to Bloomberg. According to its chief executive, the company will expand its capacity to 100 GWh in 2023 and it aims to reach a total capacity of 500 GWh in 2025.
6. Samsung SDI Co., Ltd.
Market share as of July 2022: 4.9%
Samsung SDI Co., Ltd. is a division of Samsung Electronics Co., Ltd. and is a manufacturer of energy storage systems, electronics, and renewable energy technologies based in South Korea since 1970. It has a number of EV battery plants in South Korea, China, Malaysia, and Hungary.
The company supplies a number of major automotive manufacturers including Bayerische Motoren Werke Aktiengesellschaft, Ford Motor Company, Volkswagen SA, Hyundai Motor Company, and Volvo Car AB. In its 2022 annual report, the company reported a record revenue of around $15.4 billion and an operating profit of nearly $1.4 billion. The company plans to expand its capacity to 60 GWh by the second half of 2030 and has partnered with Stellantis N.V. to build a $2.5 billion battery plant in the United States with an annual capacity of 23 GWh when it kicks off in 2025.
Like Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and General Motors Company (NYSE:GM), Samsung SDI Co., Ltd. is a more renowned name making its way in the battery and automotive industries today.
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Disclosure: None. 12 Biggest Battery Manufacturers in the World is originally published on Insider Monkey.
