In a comprehensive report released by SNE Research in January 2024, the global electric vehicle (EV) market, including plug-in hybrid (PHEV) and hybrid electric vehicles (HEV), showcased a significant growth in battery usage throughout 2023. According to the “Global Monthly EV and Battery Monthly Tracker,” the energy capacity of batteries utilized in EVs worldwide reached approximately 705.5GWh from January to December 2023. This figure represents a notable year-over-year increase of 38.6%, signaling robust expansion in the EV sector despite various market challenges.
The report further delves into the market share dynamics of major battery manufacturers, collectively known as the K-trio, which comprises South Korean giants LG Energy Solution, SK On, and Samsung SDI. Despite a slight decline in their combined market share to 23.1% — a drop of 1.6 percentage points from the previous year — the K-trio continues to exhibit an upward trajectory in battery usage. LG Energy Solution emerged as the third-ranking company with a year-over-year growth of 33.8%, amounting to 95.8GWh. SK On followed in fifth place with a 14.4% growth (34.4GWh), and Samsung SDI secured the seventh position, achieving the highest growth among the trio at 36.1% (32.6GWh).
The growth momentum of these companies has been largely fueled by the successful sales of EV models equipped with their batteries, alongside the launch of new vehicles. Samsung SDI, in particular, recorded exceptional growth thanks to robust sales in Europe of models like the BMW iX/i4/i7, Audi Q8 e-Tron, and FIAT 500e, as well as significant performance in North America with models such as the Rivian R1T/R1S and BMW iX. Samsung SDI’s strategy to target the premium EV battery market with its high-value-added battery products, including the P5 and P6, has also contributed to its record-breaking sales.
SK On’s growth can be attributed to the global popularity of Hyundai IONIQ 5 and KIA EV6, among others, and its advancements in prismatic and LFP battery technology, which are expected to bolster its market share, especially in North America. LG Energy Solution reported growth driven by strong sales of popular models in Europe and North America, such as the Tesla Model 3/Y and the Ford Mustang Mach-E. The company is focusing on developing high-voltage and mid-nickel NCM batteries, alongside the mass production of its 46xx series batteries.
Panasonic, the only Japanese firm among the top 10 battery suppliers, registered a 26.0% year-over-year growth with 44.9GWh, largely due to its association with Tesla. The introduction of advanced battery cells is anticipated to further enhance Panasonic’s market share, particularly with Tesla.
Leading the global battery market, CATL recorded a 40.8% year-over-year growth, reaching 259.7GWh, primarily driven by its dominance in the Chinese EV market. BYD secured the second position globally with a 57.9% growth, reaching 111.4GWh, benefiting from its vertical supply chain management and expanding market presence beyond China.
The report also highlights challenges faced by the EV market in 2023, including a slowdown in growth attributed to saturated early adopters, high interest rates, high prices, and an economic downturn. Despite these hurdles, the long-term outlook for the EV market remains positive, supported by global efforts towards carbon neutrality and stricter carbon footprint regulations. The North American market, in particular, is expected to see significant investment to maintain competitiveness and improve long-term profitability, according to SNE Research.
