Asian EV battery manufacturers account for 80% of worldwide battery output.
With growing customer interest in electric vehicles, the global market for EV batteries grew to $27 billion in 2021 and is likely to increase further.
Asia is a pioneer in the production of batteries for electric vehicles, in addition to becoming a key hub for the manufacture of automotive parts. The ten manufacturers with the largest market share in terms of battery capacity newly registered in 2021 are all based in Asia, primarily China, South Korea, and Japan. According to SNE Research, the top five manufacturers in the market – CATL, LG, Panasonic, BYD, and Samsung – account for over 80% of worldwide automotive battery output.
Contemporary Amperex Technology (CATL), a Chinese company, came in first place in the manufacturers’ rankings for 2021, owing to strong demand in its home market. CATL faces severe competition outside of China from LG and Panasonic, who are ranked second and third in the world, respectively. Meanwhile, Europe and the United States have lagged behind in this crucial industrial sector. Several initiatives attempting to alter the status quo must now catch up.
Lithium-ion batteries have transformed our daily lives, establishing the groundwork for a future civilization that is wireless, networked, and fossil-fuel-free. However, their full potential has yet to be realized. The global demand for lithium-ion batteries is expected to climb elevenfold between 2020 and 2030, reaching over two terawatt-hours in 2030. The increased popularity of electric vehicles, which mostly rely on lithium-ion batteries for electricity, can be credited for much of this rise.
As a result, the worldwide lithium-ion battery market is predicted to expand rapidly. While the market was valued at roughly 40.5 billion dollars in 2020, it is expected to grow to around 91.9 billion dollars in 2030.
China is winning the battery manufacturing race
Increased production capacity is being used to meet the increased demand for lithium-ion batteries. The number of battery plants under construction or planned increased from four to 181 between 2015 and 2020. As a result, global lithium-ion battery production capacity is expected to increase dramatically, from about 300 gigawatt-hours in 2018 to over two terawatt-hours in 2028. This expanding industrial capacity, however, is not evenly dispersed over the globe. China was the world’s lithium-ion battery production superpower in 2020, producing over 77 percent of all batteries sold worldwide. China was home to the majority of the world’s largest battery manufacturing, which is unsurprising.
Despite Europe’s plans to invest heavily in lithium-ion battery manufacturing facilities, China will continue to dominate global lithium-ion battery production for the foreseeable future. China is predicted to produce 65 percent of the world’s lithium-ion batteries by 2025, while Europe is expected to produce roughly 25%.