The global electric vehicle (EV) market continues to grow amid increasing demand for decarbonization of the transportation sector.
The electric vehicle market is predicted to grow fivefold to US$ 95 billion in 2028 from US$ 17 billion in 2019.
The battery manufacturers that power electric vehicles have seen this as substantial momentum. So far, the production of electric car batteries is still dominated by Asian companies, although the United States (US) and Europe continue to strive to increase battery production in their own countries.
Bruno Venditti and Sabrina Lam from Visual Capitalist in their research as quoted by Oilprice.com, Monday (10/10) noted that the 10 largest battery manufacturers in the world in 2022 will be Asian companies.
Chinese companies control 56% of the EV battery market share in Asia. Meanwhile, Korean companies control 26% of the market and Japanese manufacturers have 10% market share.
Contemporary Amperex Technology Co. Ltd. (CATL) is an electric car battery manufacturer from China. The company dominates the world electric vehicle battery market where currently its market share has reached 34%, an increase from 32% in 2021.
LG Energy Solution is the world’s second-largest electric battery manufacturer despite facing intense scrutiny following the US recall of EV batteries. The South Korean company has accounted for 14% of global EV batteries.
In 2021, LG agreed to pay General Motors US$1.9 billion in damages for the recall of 143,000 Chevrolet Bolt electric cars from the market following a fire incident allegedly caused by a battery made by LG Chem.
In third place is BYD Automobile, a battery manufacturer from China which controls 12 percent of the world market share. This year, the company managed to seize the position of Panasonic because it managed to double its market share over the past year.
The Warren Buffett-backed company is the world’s third-largest automaker by market capitalization, but it also produces batteries that are sold in markets around the world. The latest sales figures show BYD overtaking LG Energy Solution in market share in the coming months or years.
While Panasonic is in fifth place with a market share of 10%. The Japanese company has launched the 4680. format battery which is produced at the Wakayama prefecture factory.
In the next position are SK Innovation from Japan with 7% market share, Samsung SDI from Korea with 5% market share, China Aviation Lithium Battery (CALB) with 4% market share, Guoxuan from China with 3% market share, Sunwoda from China with 2% market share, and SVOLT from China with 1% market share.
As these electric vehicles improve, internal combustion engine (ICE) vehicles will fade in the next few decades. Recently, General Motors announced that it has plans to stop selling ICE vehicles by 2035. While Audi plans to stop producing these models in 2033.
Beyond EVs, battery technology is critical to the energy transition, providing storage capacity for intermittent solar and wind generation.
As battery manufacturers work to supply the growing demand for EV transitions and increase the energy density in their products, the electric vehicle industry is expected to expand further.