The global electric vehicle (EV) battery market recorded significant growth in the first half of 2024, with an estimated 364.6 GWh of energy stored in EV batteries, marking a 22.3% increase compared to the same period last year. This growth underscores a continuing trend in the adoption of electric vehicles worldwide.
Among the key players in the market, South Korea’s “K-trio” battery manufacturers—LG Energy Solution, SK On, and Samsung SDI—saw varied performances. Samsung SDI led with the highest year-over-year (YoY) growth of 17.4%, amounting to 16.4 GWh. This growth was driven by strong sales of BMW’s EV lineup and other popular models in Europe and North America. Despite a significant 40% drop in operating profit in Q2 due to the EV market’s current downturn, Samsung SDI anticipates recovery in demand by the year’s end and plans to maintain its capital expenditure.
SK On achieved a 5.4% YoY growth to 17.3 GWh, bolstered by a rebound in sales of Hyundai’s IONIQ 5 and EV6 and solid performance from Ford and Mercedes models. However, SK On reported continuous operating losses and anticipates breaking even in the latter half of 2024 through cost reductions and increased EV demand.
LG Energy Solution also saw a 5.7% YoY growth to 46.9 GWh. The company benefited from strong sales of models like the Tesla Model 3/Y and Volkswagen ID.4, as well as from new models equipped with batteries from joint ventures. Despite a challenging market with declining EV demand and fixed cost pressures in Europe, LG Energy Solution’s profitability in North America improved significantly, driven by favorable tax credits. Nevertheless, the company forecasts a potential 20% drop in annual sales for 2024.
In contrast, Panasonic, the sole Japanese company in the top ten, experienced a 25.1% YoY decline to 16.2 GWh, primarily due to decreased sales of the Tesla Model 3 during its facelift period. However, with new product launches and a focus on Tesla, Panasonic is expected to regain market share.
CATL maintained its leading position globally, with a 29.5% YoY growth to 137.7 GWh. Despite a decline in Q2 sales, CATL’s profitability remained strong, and the introduction of new high-performance batteries like the Shenxing Plus and Qilin are expected to further solidify its market position.
BYD, ranked second, reported a 22.0% YoY growth to 57.5 GWh. The company continues to break sales records and is making significant strides in the BEV and PHEV markets, aiming to challenge Tesla’s dominance in BEV sales.
The global EV battery market’s overall growth remains robust at around 20% for the first half of 2024. However, the combined market share of the K-trio battery makers has declined, influenced by a slowdown in EV demand. Looking ahead, the stabilization of metal prices and new EV model releases are expected to support market recovery. Meanwhile, Chinese battery manufacturers continue to thrive, thanks to sustained EV sales in China and growing adoption of LFP batteries globally. Protectionist measures by the US and Europe against Chinese EVs may also benefit Korean battery manufacturers.
