The global market for battery manufacturers is expected to grow from a 17 billion net worth to 95 billion dollars in a span of a decade. With the world turning towards decarbonization, these companies producing EV batteries are gaining momentum.
Asian Dominance in the EV Battery Manufacturing Market
Despite the tremendous efforts put forth by the USA and the European countries to lead the EV battery manufacturing market, the top 10 EV battery manufacturing companies remain Asian.
At the moment Chinese companies make up almost 56% of the EV battery market, it is 26% Korean and the rest are Japanese.
Top 10 EV Battery Manufacturing Companies in 2022
| Rank | Company | 2022 Market Share | Country |
|---|---|---|---|
| #1 | CATL | 34% | China |
| #2 | LG Energy Solution | 14% | Korea |
| #3 | BYD | 12% | China |
| #4 | Panasonic | 10% | Japan |
| #5 | SK On | 7% | Korea |
| #6 | Samsung SDI | 5% | Korea |
| #7 | CALB | 4% | China |
| #8 | Guoxuan | 3% | China |
| #9 | Sunwoda | 2% | China |
| #10 | SVOLT | 1% | China |
1. CATL
The leading brand in EV battery manufacturing has to be CATL, which has expanded its market from a margin of 2% which was 32% in 2021 and 34% in 2022. CATL dominates one-third of the Ev market. CATL is a solid Chinese Ev battery manufacturing brand followed by BYD, which is the third largest battery manufacturer with control of 12% of the market. These two businesses lead the Chinese Dominance, With Chinese companies having 56% shares in the EV battery manufacturing market.
CATL manufactures Solid State battries and lithium-ion batteries for great names in the automobile industry like; Peugeot, Hyundai, Honda, BMW, Toyota, Volkswagen, and Volvo. Tesla also receives CATL-manufactured batteries for its Shanghai-based assembly line.
According to South Korea’s SNE research, CATL sold roughly 70.9 gigawatt hours worth of batteries, which is a 115.6% increase in sales.
Read More: Calculate Battery Capacity for Electric Vehicle
Ever since it was established in 2011, CATL soon partnered with BMW. Since then it has capitalized about 1,3 trillion worth of shares with its joint ventures with Chinese automakers like SAIC motors, Dongfeng Motors, GAC Group, Geely Auto Group, and FAW group.
2. LG Energy Solution
The South-Korean energy solution supplier LG had to repay General Motors; $1.9 billion to compensate for the hazards put forth due to the defective batteries in 143,000 Chevy Bolt EVs In the United States. Despite this controversial scrutiny that the company was put through it remained the second-largest manufactures of EV batteries.
However, it was lower than the year earlier, LG energy solutions maintained a 14% control over the EV market.
3. BYD
Panasonic lost the third spot to the Chinese enterprise BYD, this change was possible due to the fact that BYD managed to double its shares in a year. Recent surveys and market figures state that the Warren- Buffet-led company might overtake LG Energy Solution in a few months to come.
BYD is an abbreviation for Build Your Dreams is a strengthening Chinese company that has doubled its battery manufacturing to meet the growing demands in the EV industry.
BYD has 11 manufacturing plants all over China, which involve the manufacturing of 200kwh of batteries. In August 2021, Fudi Industry Co. Ltd a different section of the BYD Industries launched a complete battery dedicated unit.
It was reported by a local news source that BYD will be supplying batteries to Tesla, which was confirmed by BYD executives on the 8th of June this year;
“We are now good friends with Elon Musk because we are preparing to supply batteries to Tesla very soon,” said Lian Yubo, a senior executive of BYD to CGTN; a Chinese state-owned news agency. BYD has been for a very long time supplying batteries to automobile businesses like Toyota.
BYD has manufactured a product by the name “blade battery”, In comparison to lithium-ion batteries that employ cobalt or nickel and offer greater range but at a higher price, BYD’s blade battery has a lithium-ion phosphate (LFP) constitution and promises improved thermal stability and stronger impact resistance.
4. Panasonic
With a 10% share, Panasonic just lags one spot behind BYD. Early in 2015, Panasonic was the only company supplying batteries to Tesla, which again allowed Tesla to hike its production.
The company is currently working with Tesla to start production of its new 4680 battery cell format which is expected to come with some significant capacity improvements. Panasonic is expected to start production next year
.
5. SK Innovation (SKI)
SK on Founder has the biggest goal planned for his company, he wants to make it the largest EV battery manufacturer by 2030.
“We will definitely be on par with the number one, or be the world’s leading battery maker,” Jee says in an interview.
Being the fifth largest Ev battery manufacturer it has a manufacturing capacity of 13.2 GWh. South Korea’s SNE research reported that the company had hit $13.2 billion in sales.
The other major competitor, Samsung, which had previously had the fifth rank but has been slowly losing ground, was overtaken by SK On last year.
6. Samsung SDI
Samsung SDI is the 6th largest EV battery manufacturing enterprise with a 5 % share in the market. The previous battery suppliers of Volkswagen will now partner with Stellantis NV in its joint venture of $1.2 billion in Indiana state in the US.
It originally intends to reach a 23-gigawatt hour (GWh) yearly output capacity, with future plans to enhance it to 33 GWh.
Samsung, in 2019 signed a long-term battery supply contract with BMW until 2031, the German Automobile giant was interested in the new era cylinder batteries which were also used by Tesla.
EVP Son Michael, Head of the Automotive & ESS Battery Strategic Marketing Team, said, “Samsung SDI has been continuously developing differentiated battery technology and worked to lead the EV market based on the best quality.”
7. CALB Technology
A new Chinese EV battery giant has risen, it is CALB. CALB targets the top three EV battery manufacturers. CALB intends to hike its manufacturing capacity to 200 GWh. One of the CALB executives in her interviews with Bloomberg said that their domestic market share is sure to see a rise in 2023 and their foreign market share will also boom in the following year. The executive also mentioned that the IPO funds will be used for Research and Development and expansion of the company.
With eight significant production facilities spread throughout China, CALB has signed a preliminary agreement to build a battery plant in Europe and plans to increase capacity by 100 gigawatt-hours in Guangzhou and Jiangmen. It also has a project to increase the production of 100,000 tonnes of lithium cathode materials annually. Additionally, last year, as stated in its sales listing paperwork, it earned a profit.
8. Guoxan High Tech
Established in 1998, and headquartered in Heifei, China is a manufacturer of Lithium batteries. It also is very keen on research and development. In 2021, Guoxan manufactured a new high-energy density LFP. The company has stated that the new cells are 210 GWh per kilogram which could be a world record. Comparatively, the Tesla Model 3 and Model Y in Shanghai are equipped with CATL’s LFP cells, which are said to deliver 125 Wh/kg at the pack level..
9. Sunwoda
Sunwoda is committed to manufacturing advanced lithium battery integration technology in China. When Sunwoda was first established, its focus was on consumer batteries. The EVB (Electric Vehicle Battery) division has announced many investments as a result of the company’s recent considerable growth in its electric vehicle battery industry.
Almost the majority of Sunwoda’s revenues are made in China. Sunwoda lithium batteries are only used by the Dacia Spring in Europe, and even that vehicle is merely the sister company of the Renault K-ZE City, which was created for the Chinese market.
10. SVOLT
SVOLT the tenth in this list has plans to set up their second battery plant in Germany in the state of Brandenburg, the same as Tesla. It is the first time SVOLT has entered the top ten from their spin-off from Great Wall Motors to a battery plant in Germany.
CALB and SVOLT are seen as the next new leaders making it to the topmost in the EV industry.
Asia is becoming the hotspot for EV battery manufacturing, there is no space for doubt as the top 10 Ev battery manufacturing powerhouses are headquartered in Asia, mostly China, South Korea, and Japan.
