In an unprecedented turn of events, the Chinese battery manufacturer, Contemporary Amperex Technology Co., Ltd. (CATL), has made headlines by securing the top spots in global, Chinese, and non-Chinese markets for power batteries in 2024, marking a significant moment in the evolving landscape of the energy industryThese rankings, unveiled by the renowned battery research organization SNE Research on February 11th and 12th, have sparked discussions about the burgeoning influence of electric vehicle (EV) manufacturers on battery production companies.

According to SNE Research, 2024 arrives with an assortment of changes that are transforming the power battery sector, particularly regarding non-Chinese marketsCATL has achieved what is being dubbed a historic milestone by surpassing LG Energy Solution to become the leading power battery supplier outside of ChinaThis accomplishment not only cements CATL's dominance in China but also solidifies its position as a frontrunner in global battery supply, with significant implications for the battery market at largePrevious rankings in 2023 had witnessed a neck-and-neck situation between CATL and LG Energy, where the margin of difference was minimal, with CATL trailing LG by a fractional 0.1 GWhHowever, the tides have clearly turned in 2024, primarily fueled by the increasing deployment of CATL battery units in international automotive models and the surging exports of Chinese electric carsIn fact, CATL reported a remarkable 10.9% growth in non-Chinese markets, starkly contrasting with LG's mere 1.0% growth—a shift that firmly positions CATL at the pinnacle of the power battery industry.

Another noteworthy development from SNE Research's rankings is Tesla's ascension into the top ten, indicating a reduction in market concentration among leading power battery suppliersDespite reigning as the number one supplier, CATL's market share saw a slight dip from 27.5% to 27.0% when compared to 2023. Furthermore, the degree of concentration among the top three manufacturers (CR3) plummeted from 65.7% to 62.4%, while the top five (CR5) and top ten (CR10) also experienced declines, signaling a more fragmented market landscape

Advertisements

Market shifts were mainly attributed to the downturns faced by LG Energy and Panasonic, particularly LG Energy, which suffered sharp declines due to the slowing growth rate in the European electric vehicle sectorPanasonic, on the other hand, encountered significant challenges stemming from substantial changes in its cornerstone client Tesla, who began mass production of their 4680 cylindrical batteries in Germany—a move that ultimately led to an 8 GWh shipment in 2024, closely paralleling an 7.7 GWh decline in Panasonic's deliveries.

As the manufacturing capabilities of Chinese EV manufacturers expand and their exports increase, other homegrown battery firms are steadily climbing the ranksAmong the top ten, only BYD and CATL have reported increases exceeding 100%, while other manufacturers nearing this benchmark predominantly originate from within ChinaWith this solidified momentum, CATL and BYD have further consolidated their market shares to 37.9% and 17.2% respectively, while LG Energy has faced relentless pressure, falling to approximately 10%. This establishes a clear divide within the global power battery market—where CATL and BYD stand as the juggernauts, overshadowing their rivals.

Amidst this competitive landscape, the only firms among the top ten experiencing declines in battery deployment volumes were Panasonic and Samsung SDISignificant losses in market share were recorded for LG Energy, China Innovation Aviation, SK On, Panasonic, and Samsung SDI, with LG witnessing the largest drop of 2.7 percentage pointsIn stark contrast, Panasonic suffered a staggering 18% reduction in deployment volumes, further relinquishing 2.2 percentage points from its market shareContrastingly, advancements by Chinese battery manufacturers are evident, as six out of the ten leading players recorded an increase in their collective market share from 63.4% in 2023 to 67.1% in 2024. With the majority of market share beyond the top ten also emanating from Chinese companies, it's clear that domestic enterprises now account for nearly 80% of the global market.

Examining the rankings within China reveals the emergence of three newly listed firms in the top 15: Jidian New Energy, Inpai Battery, and Yaoning New Energy

Advertisements

Meanwhile, several firms were edged out, including Jie Wei Power, Weilan New Energy, and Anch New Energy, which highlights the burgeoning trend of automotive manufacturers creating integrated battery solutions while it is evident that 2024 is geared towards a rapid development of battery self-sourcing among car manufacturersJidian, having been established under Geely Holdings, emphasizes the trend of OEMs intending to reduce dependency on third-party battery makers and enhance integration within their product linesLikewise, Yaoning's roots as Geely's component department mimic this trend, while Inpai is established within the GAC group supplying batteries for Aion models, encapsulating the industry's shift towards vertical integration.

As for companies showing significant growth, CATL remains a standout performer, achieving nearly 50% growth thanks to its diverse clientele—an attribute that separates it from other producers who may rely heavily on a concentrated client baseCATL's major clients, including Tesla, Geely, and Wenting, account for only 31% of its revenue, showcasing the company’s adaptability and ability to capitalize on varied opportunitiesThis feature sets the tone for 2024, where CATL anticipates substantial growth driven primarily by comprehensive initiatives from WentingAmong the thriving companies, firms like Honeycomb Energy, Xinneng Technology, Ruipu Lan Jun, and Zhengli New Energy have reported growth near 100%, aided by substantial customer demands and robust partnerships with key players in the market, primarily those catering to electric vehicles.

Contrastingly, BYD faces market turbulence, primarily stemming from its growth through hybrid vehicles that generally possess lower battery requirements compared to their fully electric counterparts, resulting in slower deployment volumes in relation to competing battery firmsNevertheless, the anticipated popularity of BYD's new clientele, especially Xpeng Motors with their successful launches of the MONA M03 and P7+ models in late 2024, hints at promising prospects for further breakthroughs in external battery supply.

The circumstances surrounding Eve Energy's declining market share are particularly concerning

Advertisements

Advertisements

Advertisements