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From Jan to August in 2023, Non-Chinese Global[1] EV Battery Usage[2] Posted 197.6GWh, a 58.9% YoY Growth

- K-trio took up 48.3% M/S, with LGES remaining on top.

 

Battery installation for global electric vehicles (EV, PHEV, HEV) excluding the Chinese market sold from January to August 2023 was approximately 197.6GWh, a 58.9% YoY growth.

 

 


 

 

(Source: Global EV and Battery Monthly Tracker – September 2023, SNE Research)

 

In the ranking of battery usage for electric vehicles, the K-trio battery makers all ranked within the top 5. LG Energy Solution ranked No. 1 on the list with a 59.7% (56.3GWh) YoY growth, while SK On took the 4th position with a 16.1% (21.6GWh) YoY growth and Samsung SDI took the 5th with a 33.0% (17.5GWh) YoY growth. CATL in China recorded a triple-digit growth of 111.1% (54.7GWh), getting closer to LGES.




(Source: Global EV and Battery Monthly Tracker – September 2023, SNE Research)

 

The combined shares of K-trio recorded 48.3%, a 5.6%p decline from the same period of last year, but their battery usage was still in an upward trend. Their growth trend was mainly affected by favorable sales of electric vehicle models equipped with batteries of each company. Samsung SDI continued to be in an upward trajectory, recording steady sales of BMW i4/i7/iX, Audi Q8 E-Tron, Rivian R1T/R1S/EDV, and FIAT 500. SK On exhibited a growth thanks to solid sales of Hyundai IONIQ5, KIA EV6, and Mercedes EQA/B. With the recent news about increased production of Ford F-150 Lightning and its subsequent sales increase, it seems to further drive the growth of SK On. LG Energy Solution recorded the highest growth among the K-trio based on favorable sales of global best-selling models such as Tesla Model 3/Y, Volkswagen ID. 3/4, and Ford Mustang Mach-E.

 

Panasonic registered 30.4GWh, a 38.4% YoY growth. As one of the major battery suppliers to Tesla, most of Panasonic’s battery usage was those installed to Tesla in the North American market. In particular, Tesla Model Y showed a sharp YoY increase in sales, leading the growth of Panasonic. It has been reported that MAZDA vehicles also have Panasonic’s battery installed inside and discussions between the two companies have been ongoing to increase the battery supply.

 

Along with CATL, some of the Chinese companies have boasted an explosive, triple-digit growth even in the non-China market, gradually expanding their presence on the global stage. CATL, ranked 2nd in the non-China market thanks to favorable sales of Tesla Model 3/Y(made in China and exported to Europe, North America, and Asia), Mercedes EQS, Volvo XC40 Recharge, and MG-4. As it has been reported that CATL’s battery is installed to a new KONA model by Hyundai and Ray EV model by KIA, it is forecasted that CATL’s share in the non-China market would further expand.

BYD, showing the highest growth among the top 10 companies, has drawn a great popularity in the Chinese domestic market based on its price competitiveness earned from vertical integration of SCM such as in-house battery supply and vehicle manufacturing. Taking advantage of its price competitiveness, targeting the Chinese domestic market, and product quality, BYD has been seeing a rapid increase in its share in the markets of Europe and Asia with its major model, Atto 3 (Yuan plus).

 

Farasis in China, ranked 9th on the list, has been expanding its share mainly in the Europe and North America markets by supply mainly pouch cells to Mercedes and GAC.



(Source: Global EV and Battery Monthly Tracker – September 2023, SNE Research)

 


Driven by a strong will to enter overseas markets, the Chinese companies have continuously exhibited a high growth in the non-China market. CATL, in particular, has recorded a sharp increase in its share, threatening LGES on the top position. The major reason for a recent slowdown in global EV sales is pointed out to be price. Under these circumstances, it seems that xEV battery market has gradually tilted towards LFP battery of which price competitiveness is higher than that of others especially in the market of entry models where cost-effectiveness is a key. Particularly in Europe, where the usage of LFP battery is low, attentions should be drawn to changes in the market shares of Chinese cell makers and usage of LFP battery.



[1] The xEV sales of 80 countries are aggregated. (excl. the China market).

[2] Based on battery installation for xEV registered during the relevant period.