September 8, 2023
BEIJING – Domestic player CATL continues to be king of the hill, followed by BYD
Chinese companies continued to dominate the global power battery market in the first seven months, responsible for over three-fifths of battery installations worldwide, said a report by South Korean market consultancy SNE Research on Wednesday.
According to the latest report, six Chinese battery companies were among the Top 10 such firms globally in terms of battery installations, with a total market share of 62.9 percent, from January to July. South Korea followed with three firms and Japan with one.
Specifically, Chinese battery giant Contemporary Amperex Technology Co Ltd maintained its leading position with total installed capacity of 132.9 gigawatt hours, up 54.3 percent year-on-year. Its global market share stood at an impressive 36.6 percent.
Chinese EV maker BYD ranked second worldwide at 58.1 GWh, up a whopping 94.1 percent year-on-year. South Korea’s LG Energy Solution followed with 51.4 GWh. China’s CALB, EVE, Gotion High-Tech and Sunwoda were also among the Top 10.
SNE Research said BYD has shown a noteworthy performance in the first seven months and has achieved broad popularity based on its price competitiveness in aspects such as in-house battery supply chains and vehicle manufacturing.
Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing, said: “The notable performance of Chinese battery companies can be attributed to rising demand from major overseas consumer countries for renewable energy and new energy vehicles. Also, local companies have made great technological advancements in lithium battery manufacturing.”
Similar views were shared by Pan Helin, co-director of the Digital Economy and Financial Innovation Research Center at Zhejiang University’s International Business School. Chinese battery firms have exhibited increasing strength in overseas markets, he said.
Currently, more than 10 Chinese power battery companies have announced plans for overseas investments.
“For local battery firms and related companies in the industry chain, the global battery market still has the potential to grow manifold in terms of scale,” Pan said.
Over the past few years, CATL, for instance, has tried to penetrate overseas markets, and has been enjoying rapid growth in Europe and North America.
At the IAA Munich Car Show on Monday, CATL’s principal engineer Gao Pengfei said the company plans to manufacture its ultra high-speed charging Shenxing battery not only in China, but also at its facilities in Germany and Hungary.
Shenxing, made with lithium iron phosphate (LFP), is able to deliver a driving range of 400 kilometers with a 10-minute charging time. It was unveiled in August with the company saying it is the world’s first super-fast charging LFP battery.
LFP chemistry offers cost advantages compared to nickel-cobalt-manganese batteries used in cylindrical cells by automakers such as BMW and Tesla, Gao said.