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The latest global power battery usage data for 2024 released by SNE Research, a well-known battery research institution in South Korea, shows that global electric vehicle battery usage has reached 894.4GWh, a year-on-year increase of 27.2%.
Looking at the performance of each company, some have seen their market share shrink and are having a hard time, while others have retained the top spot and are firmly in first place.
First, CATL’s “superior” position is solid. CATL has been ranked first in the world for eight consecutive years, with a total installed capacity of 339.3GWh, and its market share has increased by 1.3 percentage points, further consolidating its leading advantage, exceeding the sum of the second to fifth places. It has achieved comprehensive leadership in both the Chinese and overseas markets for the first time, with an overseas market share of 27%, surpassing LG Energy Solution to become the number one in non-Chinese markets.
Second, BYD’s “dual-track strategy” has achieved remarkable results. BYD ranked second in the world with 153.7GWh of installed capacity (market share of 17.2%), a year-on-year increase of 37.5%. Its dual-track strategy of pure electric and plug-in hybrid models has driven sales growth, and with the expansion of overseas markets (such as Europe and Southeast Asia), overseas installed capacity has surged by 117.6% year-on-year.
Third, Chinese companies are rising collectively, while the market share of Japan and South Korea is shrinking. Among the top ten global power battery companies, six Chinese companies have a combined market share of 67.1%, up 3.5 percentage points year-on-year; while the total market share of the three major Korean companies (LG Energy Solution, SK On, and Samsung SDI) has dropped to 18.4%, and Japan’s Panasonic’s market share is only 3.9%. Second-tier Chinese manufacturers such as Guoxuan High-tech (73.8%) and Xinwanda (74.1%) have achieved impressive growth and become new market variables.
Overall, five Chinese power battery companies, including CATL and BYD, entered the top ten. The market share of the six Chinese companies increased by 3.7 percentage points compared with last year. However, the market share of Korean and Japanese power battery companies has shrunk.
It is worth mentioning that the market share of the world’s top 10 companies has dropped from 92.6% to 89.5%, indicating that second-tier companies have divided the market through differentiated technologies (such as HEV batteries and energy storage). However, the leading companies still dominate the bargaining power by virtue of scale effects and industrial chain integration capabilities.
Let’s take a look at the performance of several key companies.
There are still hidden worries beneath the halo of CATL.
Last year, CATL was the only company in the world whose installed capacity of power batteries exceeded 300 GWh. With an installed capacity of 339.3 GWh, it accounted for 37.9% of the global market, an increase of 1.1 percentage points over the same period last year, ranking first in the world.
On February 11, CATL formally submitted an application to the Hong Kong Stock Exchange to issue overseas listed foreign shares (H shares) and list on the main board of the Hong Kong Stock Exchange.
Although CATL has the world’s largest lithium battery production capacity, one in three new energy vehicles in the world is equipped with CATL batteries. With the intensification of industry competition and changes in the market environment, Ning Wang’s anxiety is also obvious to all.
SNE Research’s analysis said that CATL is not only a supplier to major Chinese automakers in the Chinese domestic market (the world’s largest electric vehicle market), such as Zeekr, Q-Wheel and Ideal, but also a supplier to global electric vehicle companies such as Tesla, BMW, Mercedes-Benz and Volkswagen.
Last year, BYD’s installed capacity of power batteries reached 153.7 GWh, and its market share increased by 1.3 percentage points from the previous year to 17.2%, ranking second in the world.
SNE Research analyzed that BYD not only produces batteries itself, but also produces electric vehicles (BEV+PHEV), which are popular in the market with its diversified vehicle portfolio and competitive prices.
SNE noted that BYD has rapidly expanded its market share outside of China by entering the Asian and European markets.
Sinotruk, Guoxuan, EVE Energy and Sunwoda all made it into the top 10 in the world. Sinotruk was the only company in the top 10 last year that saw its ranking rise compared to the previous year. The company installed 39.4 GWh of power batteries last year, accounting for 4.4% of the global market share, down 0.4 percentage points from 2023, but its ranking rose by two places compared to the same period last year.
In comparison, Panasonic, the representative of Japanese power batteries, ranked sixth, but its installed capacity fell by 18.0% year-on-year. The Korean army consisting of LG Energy, SK On and Samsung SDI had a total market share of 18.4%, down 4.7 percentage points from the same period last year.
SNE Research analysis pointed out that the main reason for the decline in Samsung SDI’s battery usage is the reduction in demand for its batteries from major automobile OEMs in Europe and North America.
Overall, Japan and South Korea are indeed having a hard time.
Of course, power batteries also face a series of changes and challenges.
On the one hand, in terms of trade barriers, the U.S. Inflation Reduction Act (IRA)’s requirements for local supply chains have forced Korean companies to accelerate factory construction in North America, while Chinese battery companies have avoided risks through technology licensing and overseas joint ventures (such as CATL’s Spanish factory and EVE Energy’s Hungarian base).
On the other hand, regional market differentiation has intensified. China is still the largest single market, accounting for 59.6% of global installed capacity (about 533GWh), but the growth rate has slowed to 39.2%. Emerging markets have become the focus of competition, and India and Southeast Asia have become the focus of Chinese and Korean companies due to policy support and low penetration rates.
Finally, there is a contradiction between short-term hybrid demand and long-term electrification. Due to the slowdown in market growth, European and American automakers are turning to hybrid models in the short term, which may affect the demand structure of power batteries. However, the medium- and long-term electrification trend remains unchanged, and battery companies need to balance production capacity planning and technology reserves.
Qishiguan: Pressure and Resilience
In 2024, the power battery industry will present a situation where “the strong will always be strong” and “new forces will rise”. The global layout and technological iteration capabilities of Chinese companies make their dominant position difficult to shake, but geopolitical risks and cost pressures will test long-term resilience. In the future, the focus of competition may shift from capacity expansion to technological differentiation (such as solid-state batteries, fast charging) and supply chain localization. The industry needs to find a balance between high-speed growth and sustainable development, and the dual role of policy guidance and market demand will reshape the global landscape. (Some pictures are from the Internet)