Ranked: Top 10 EV Battery Manufacturers
Asian battery production plants
As well as being a powerhouse for the manufacture of auto parts, Asia is fast becoming a hotbed of innovation in the battery sector.
No wonder the top 10 EV battery manufacturers by market share are all headquartered in Asian countries, concentrated in China, Japan and South Korea.
According to data from SNE Research, the top three battery manufacturers – CATL, LG and Panasonic – account for nearly 70% of the EV battery manufacturing market.
Based in the Chinese coastal city of Ningde, better known for its tea plantations, Contemporary Amperex Technology Co. Limited (CATL) has grown into the world’s largest battery group in less than 10 years.
The Chinese company supplies lithium iron phosphate (LFP) batteries to Tesla, Peugeot, Hyundai, Honda, BMW, Toyota, Volkswagen and Volvo, and the company’s shares rose 160% in 2020, raising CATL’s market capitalization to nearly $ 186 billion.
CATL has nine people on the Forbes List of Global Billionaires. Its founder, Zeng Yuqun, born in a poor village in 1968 during the Chinese Cultural Revolution, is now worth almost as much as Alibaba founder Jack Ma.
China is also home to the fourth largest battery maker, BYD, backed by Warren Buffett.
Competition for CATL outside of China
Outside of China, CATL faces stiff competition from established players LG and Panasonic, second and third in our rankings, respectively.
With over 100 years of history, Panasonic counts Tesla and Toyota among its battery buyers. LG pocket cells are used in electric vehicles from Jaguar, Audi, Porsche, Ford and GM.
US and European plans for battery production
President Joe Biden’s strategy for making the United States a powerhouse in electric vehicles includes increasing domestic production of batteries. European countries are also seeking to reduce decades of growing dependence on China.
As Western countries accelerate, new players are expected to increase.
A host of new generation battery technologies are already being developed by US companies, including Ionic Materials, QuantumScape, Sila Nanotechnologies, Sion Power and Sionic Energy.
Whatever direction the market takes, the outlook is certainly bright for battery producers.
(This article first appeared in Visual Capitalist Elements)