Batteries for electric cars: TOP-10

Batteries for electric vehicles: TOP 10 largest EV battery manufacturers in the world

The energy crisis in 2021 and a full-scale war in the heart of Europe in 2022 contributed to the growth of the electric transport market in the world. Today, the trend of abandoning internal combustion engines and switching to ecological transport is relevant, especially in Europe, which is gradually abandoning Russian energy carriers. Along with electric cars, the direction of the battery of electric cars, as the most expensive component of the equipment, is developing. At the same time, the life of the battery is limited to an average of 1000-1500 charge/discharge cycles, and therefore it needs to be periodically replaced (on average, every 10 years). Therefore, it is not surprising that with such a demand, production volumes and profits of producers are extremely high.

Ten of the largest companies producing batteries for electric vehicles are concentrated in Asia

Automobile concerns are practically not engaged in the production of batteries, although some are already working in this direction (for example, Tesla), and others are buying shares of battery manufacturers (Volkswagen, General Motors). However, purchasing components from specialized companies that are focused on research and production of high-capacity and reliable batteries remains the most popular option.

Top 10 battery manufacturers and their share in the world market (according to Business Korea):

China: CATL – 31,2%;
South Korea: LG Energy Solution – 21,2%;
Japan: Panasonic – 13,2%;
China: BYD – 8,5%;
South Korea: SK Innovation – 5,8%;
South Korea: Samsung SDI – 4,6%;
China: CALB – 2,8%;
China: Guoxuan – 2,1%;
China: AESC (Envision) – 1,5%;
China: SVOLT – 1%.

Аdid you know that CATL are batteries for Tesla electric cars, as well as Logistar 200 commercial light cars from the Cenntro Electric Group company, which recently appeared on the Ukrainian market, but have already been loved by our entrepreneurs. Compact shunting electric cars in bodies Van, Pickup і Cargo Box open up new opportunities in various areas of business: from apartment relocation to food delivery in cities and suburbs. Logistar 200 commercial cars charge quickly and have a range of up to 310 km.

The permanent leaders of the battery market in recent years do not give up their positions even today, remaining monopolists in the field of battery production. Companies from Europe have so far failed to capture a very attractive industry, and global electric vehicle manufacturers are dependent on supplies from Asian countries. Such are the realities of today.
Let’s take a closer look at the market leaders.

Batteries for electric cars from a Chinese monopolist CATL (Contemporary Amperex Technology)

For several years in a row, the company from China traditionally manufactures batteries for electric cars more than anyone else. Its capacities cover 50% of the Chinese market and a third of the global market. CATL has a great advantage due to the subsidy program of the Chinese government, which supports the domestic battery manufacturer. But the quality of Contemporary Amperex Technology batteries is also highly valued in the world. Among the largest customers of the concern are auto giants Tesla, BMW Volkswagen, Volvo.

The main product of the company is widespread lithium-ion batteries. But in their research center, the Chinese are constantly working on creating new types of energy storage — cheaper and more capacious. This is how cobalt-free sodium-ion batteries were developed. They are more affordable than lithium-ion batteries, can complement popular batteries and withstand low temperatures. However, so far in terms of specific energy density, they lose to Li-ion. In cooperation with Tesla, the company’s engineers are working on creating high-capacity cells. CATL’s main focus is on lithium-iron-phosphate batteries (LFP) and solid-state batteries.

LG Energy Solution

In 2020, the company managed to overtake CATL and take 1st place in the rating of battery suppliers. Partner brands – Hyundai, General Motor, Ford, Renault, Tesla and Volkswagen. However, later competitors from the People’s Republic of China were quicker to ramp up production. However, LGES remains in an honorable second place. According to analysts’ estimates, last year, about 1.6 million electric cars around the world were driven by the Korean brand’s lithium-ion batteries.

LG Energy Solution is currently preparing for its largest IPO, which will be held in Seoul on January 27, 2022. It is expected to be the largest IPO in South Korea, raising $10.8 billion and a final capitalization of $59 billion.

The company will use the received investment to expand towards the US market. So far, the Koreans don’t have the best reputation over there in connection with battery fires in the Chevrolet Bolt EV. But GM does not abandon the partnership and is ready to partially finance the construction of a new LGES plant in Tennessee. At the same time, the company is working on a battery joint venture with Stellantis.

Panasonic

Japan is still considered the main rival of the PRC in the production of batteries, although in the ranking of the total volume of sales, it has lost its place to the South Korean manufacturer. In fact, it is precisely in the pace of production expansion that Japanese battery manufacturers are not keeping up with China and Korea. At the same time, the product quality of Panasonic and other companies from the Land of the Rising Sun is clearly better than that of competitors. The concern closely cooperates with the manufacturer Toyota. The Japanese also supply batteries for Tesla, and today they are the main supplier of batteries for Elon Musk’s electric cars.

BYD

Until recently, the Chinese car concern was in the top three in terms of production volumes. Big businessman Warren Buffett invests in the company. But due to a sharp increase in the supply of concerns from South Korea, BYD, with its focus on providing its own electric buses and passenger cars, had to move to the 4th place in the rating.

The product for foreign partners will be high-capacity and safe LFP batteries. The novelty called Blade Battery can provide electric cars with a range of up to 600 km and will last for 1 million km. Japanese Toyota is already interested in BYD products. The company will purchase LFP batteries for its new budget electric sedan. The car is intended for China.

Other Chinese battery manufacturers generally cover a very small amount of the market (only 7.4%) than the first six companies. However, smaller firms such as CALB, SVOLT and Guoxuan are building phenomenal production growth rates.

SK On (SK Innovation)

SK On, like their Chinese competitors CATL and BYD, prefers to produce lithium-iron-phosphate batteries. In 2022, the company began serial production of pack-type batteries. This arrangement can add up to 10% of battery density. The manufacturer has enterprises in South Korea, USA, Hungary and 3 factories in China. Currently, their combined productivity is 27 GW*h.

The SK Innovation division intends to increase the production capacity of its workshops to 220 GWh by 2025. The company plans to build three factories for the production of batteries in the United States. Ford is a partner. In total, the companies will spend 11.4 billion dollars on collaboration. At the same time, a fourth factory is being built in China. In the Korean market, the services of the battery manufacturer are used by Hyundai and Kia brands. It is interesting that, despite the largest order portfolio in the field of production of traction batteries (1.2 TWh*), SK On is going to go public in 2023 only.

Samsung SDI

The “daughter” of the well-known manufacturer of smartphones and household appliances Samsung supplies batteries for electric cars Stellantis, Volkswagen and Audi. Other major clients of the South Korean brand are also from Europe – BMW and Volvo. The only public company from the Korean trio has a plant in Hungary, which manufactures batteries for European supplies, and enterprises in Malaysia. In terms of supply volumes, Samsung SDI holds the 6th place and is almost catching up with SK Innovation.

In 2020, the company talked about a solid-state battery prototype. This type of battery can solve the problem of limited range of electric vehicles. But at that time, refinements of the prototype were needed due to its tendency to short circuits. Following Panasonic and LG Energy Solutions, Samsung SDI is developing the 4680 battery cells and is already producing test batches from a factory in South Korea. These batteries are likely to be used by Lucid Motors. In early January 2022, the company registered a separate trademark for its traction batteries. All batteries will now be sold under the PRiMX brand with its “three advantages” philosophy.

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