Global sales of EV batteries increased by 54% in the first half of 2023
The global sales of electric vehicle (EV) batteries increased by 54% in the first half of this year, exceeding 300 gigawatt-hours (GWh). CATL, a Chinese battery manufacturer, dominated the EV battery market, followed by BYD and LG Energy Solutions. Chinese battery suppliers held nearly two-thirds of the market, while Tesla, BYD, and Volkswagen accounted for almost 45% of the total EV batteries installed in H1 2023, as per Counterpoint Research.
During this period, global EV sales also experienced a substantial 43 percent (year-on-year) growth. "Over the next few years, numerous new battery suppliers, such as ACC, Verkor, Northvolt and E4V, are expected to secure a substantial presence within the battery supply chain", said senior analyst Soumen Mandal. Apart from specialist battery suppliers, automakers such as Tesla, Volkswagen, BMW, Mercedes-Benz, and Stellantis also work on in-house cell and pack manufacturing, making the battery supply chain even more competitive, Mandal added. Currently, Chinese and South Korean suppliers dominate the industry.
Chinese companies like CATL, BYD, CALB, Gotion, Sunwoda, and Farasis collectively hold two-thirds of the market. At the same time, the three major South Korean players - LG Energy Solution, Samsung SDI and SK Innovation account for around 25 percent market share. The surging sales of Tesla's Model 3 and Model Y have played a pivotal role in driving the growth of CATL and LG Energy Solutions. CATL supplies batteries for the standard versions of the Model 3 and Model Y manufactured at Tesla's Shanghai factory, while LG Energy Solutions serves as the primary battery supplier for the performance versions of the Model 3 and Model Y.
On the other hand, Hyundai, Kia and Ford's EVs have played an active role in boosting the market share of SK Innovation, while Rivian and BMW predominantly rely on Samsung SDI as their battery supplier. "In H1 2023, the average battery capacity of EVs stood at 50kWh. Consequently, we expect that the total EV-driven battery demand will reach 4TWh in 2030," said research vice president Peter Richardson.
The prices of lithium, which is a primary component of EV batteries, are being driven up due to the increasing demand for batteries and geopolitical tensions. In order to reduce the cost of batteries and make EVs more affordable, battery suppliers are exploring alternative chemistries like sodium-ion (NA-ion). CATL has already achieved a breakthrough in sodium-ion battery chemistry, and we can expect the widespread adoption of such batteries in the near future, as per Richardson.
