The global electric vehicle (EV) battery market is expected to grow from $17 billion to more than $95 billion between 2019 and 2028.
With increasing demand to decarbonize the transportation sector, companies producing the batteries that power EVs have seen substantial momentum.
Visual Capitalist's Bruno Venditti and Sabrina Lam have updated their previous infographic to show the world’s biggest battery manufacturers in 2022.
Chinese Dominance
Despite efforts from the United States and Europe to increase the domestic production of batteries, the market is still dominated by Asian suppliers.
The top 10 producers are all Asian companies.
Currently, Chinese companies make up 56% of the EV battery market, followed by Korean companies (26%) and Japanese manufacturers (10%).
The leading battery supplier, CATL, expanded its market share from 32% in 2021 to 34% in 2022. One-third of the world’s EV batteries come from the Chinese company. CATL provides lithium-ion batteries to Tesla, Peugeot, Hyundai, Honda, BMW, Toyota, Volkswagen, and Volvo.
Despite facing strict scrutiny after EV battery-fire recalls in the United States, LG Energy Solution remains the second-biggest battery manufacturer. In 2021, the South Korean supplier agreed to reimburse General Motors $1.9 billion to cover the 143,000 Chevy Bolt EVs recalled due to fire risks from faulty batteries.
BYD took the third spot from Panasonic as it nearly doubled its market share over the last year. The Warren Buffett-backed company is the world’s third-largest automaker by market cap, but it also produces batteries sold in markets around the world. Recent sales figures point to BYD overtaking LG Energy Solution in market share the coming months or years.
The Age of Battery Power
Electric vehicles are here to stay, while internal combustion engine (ICE) vehicles are set to fade away in the coming decades. Recently, General Motors announced that it aims to stop selling ICE vehicles by 2035, while Audi plans to stop producing such models by 2033.
Besides EVs, battery technology is essential for the energy transition, providing storage capacity for intermittent solar and wind generation.
ADVERTISEMENT
As battery makers work to supply the EV transition’s increasing demand and improve energy density in their products, we can expect more interesting developments within this industry.
By Zerohedge.com
More Top Reads From Oilprice.com:
- The World Desperately Needs To Invest More In Battery Storage
- Russia’s Soaring Defense Spending Is Unsustainable
- Germany Needs To Slash Natural Gas Consumption To Avoid A Winter Emergency
It has taken EVs 28 years since production started in February 1994 in Liege, Belgium to reach 16.5 million, an annual average of 589,229 EVs a year. At this rate, it will take EVs 3390 years to replace the current number of ICEs on the roads assuming that the number of ICEs remained static.
But even with 16.5 million EVs, there is demand for batteries and guess who is dominating the global battery market: surprise, surprise it is China with 56% followed by South Korea (26%) and Japan (10%).
Still, the hype about EVs never ceases. The author is claiming that the global EV battery market is expected to grow from $17 bn in2019 to more than $95 bn in 2028.This is again not borne by facts.
Assuming EV sales in the next five years (2023-2028) grow by 2 million a year. This amounts to 18 million EVS added to the existing 16.5 million in 9 years. Assuming also that a battery costs $30,000 or 50% of an average price of an EV. Accordingly the battery makers have to produce annually 44.5 million batteries to supply EV production.
At a price of $30,000 a battery, total annual production will amount to $1.335 bn. So how could the global battery market then grow from $17 bn in 2019 to $95 bn by 2028, an average annual growth of $15.6 bn or 92%?
Those who write about EV potential should stop the hype and tell the truth about EVs. With the great advances in the technology of ICEs , the EV bubble will soon burst.
Dr Mamdouh G Salameh
International Oil Economist
Global Energy Expert