Global EV battery demand outside China increased by 12.7% from January to October 2024. South Korea's top battery makers—LG Energy Solution (LGES), SK On, and Samsung SDI—recorded growth in battery installations during this period.
Global NEV battery usage (excluding China) totaled 290.2 GWh between January and October 2024, a 12.7% year-over-year increase, according to SNE Research, as reported by ZDNet Korea. This includes batteries used in BEVs, PHEVs, and HEVs.
Despite growing battery usage, market share reveals a contrasting trend.
South Korea battles to retain 20% market share
China's aggressive support for its battery industry is reshaping the global EV market. In the first ten months of 2024, South Korean battery makers' market share dropped to nearly 20%, driven by competition from low-cost Chinese rivals.
In the first three quarters of 2024, CATL led the global EV battery market with a 36% market share and 212 GWh of installations, according to EV Volumes. BYD followed with 18.3% (108 GWh), while South Korea's LGES ranked third with 12.2% (72 GWh).
In the third quarter alone, CATL supplied 78 GWh, BYD 43 GWh, and LGES 28 GWh, while SK On and Samsung SDI contributed 9 GWh and 7 GWh, respectively. The top five battery makers now account for over 77% of the global market share, signaling increasing consolidation.
Battery demand continues to grow despite slowing EV sales. According to Beejay Kim of EV Volumes, "The EV market grew by 20% this year, with similar growth expected next year, driven by Europe and the Americas."
Performance of South Korea's top 3 battery makers
LGES retained its position as the world's third-largest battery maker with an 11.8% global market share, boosted by a 68.2% increase in orders for the revamped Tesla Model 3.
SK On's market share slipped to 4.5% from 5.2% in the previous year, but it maintained its position as the world's fifth-largest battery maker.
Samsung SDI saw its market share drop to 3.8% from 4.7% year-over-year, placing seventh globally.
South Korea's top three battery makers captured a 45.6% global market share in 2024, down 2.7 pp year-over-year, with their share outside China falling 3.5 points to 20.2%, according to EE Times China.
Global EV battery makers: usage and market share overview
Ranking | Company | Installed capacity (GWh, 1Q24-3Q24) | Growth rate | Market share (1Q24-3Q24) | Market share (1Q23-3Q23) |
1 | CATL | 219.6 | 26.5% | 36.7% | 35.8% |
2 | BYD | 98.5 | 28.0% | 16.4% | 15.9% |
3 | LGES | 72.4 | 4.3% | 12.1% | 14.3% |
4 | CALB | 29.3 | 27.0% | 4.9% | 4.8% |
5 | SK On | 28.5 | 12.4% | 4.8% | 5.2% |
6 | Panasonic | 25.7 | -20.2% | 4.3% | 6.6% |
7 | Samsung SDI | 23.9 | 5.4% | 4.0% | 4.7% |
8 | Gotion | 15.3 | 37.8% | 2.5% | 2.3% |
9 | EVE | 13.5 | 25.7% | 2.3% | 2.2% |
10 | Sunwoda | 12.7 | 69.6% | 2.1% | 1.5% |
Source: SNE Research, compiled by QQ News and DIGITIMES, December 2024
Battery deployment by South Korea's top 3 makers
LGES batteries power vehicles from Tesla, Volkswagen, Ford, and Hyundai Motor Group. While Tesla's Model Y saw a 3.2% sales decline, the redesigned Model 3 posted a 79.3% year-on-year increase in 2024.
Steady sales of the Ford Mustang Mach-E, Hyundai Ioniq 6, and Kona EV contributed to continued growth in LGES battery adoption.
SK On batteries are used by Hyundai, Mercedes-Benz, Volkswagen, and Ford. Hyundai's Bongo III and Porter II Electric experienced sharp sales drops (66.2% and 62.8%), while redesigned models like the Ioniq 5 and EV6 showed recovery. Overseas demand for the Kia EV9 continues to expand.
Mercedes-Benz EQA and EQB SUVs using SK On batteries saw steady sales, while strong growth in the Ford F-150 Lightning and Volkswagen ID.7 boosted SK On's battery usage.
Samsung SDI batteries are used in BMW, Rivian, and Audi models. Strong sales of BMW's i5 offset steady demand for Rivian's R1S and R1T, but declining Audi Q8 Sportback e-Tron sales led to a 21% drop in Samsung SDI battery usage.
Panasonic, Tesla's key battery supplier, ranked fourth globally with 28.4 GWh of usage in 2024, but usage fell 21.1% year-over-year due to the temporary suspension of Model 3 sales during its redesign and a slowdown in Tesla's overall sales.
China's Battery Makers: rapid growth and global dominance
Six Chinese battery makers in the global top 10 achieved double-digit growth, capturing 65.5% of the market in the first ten months of 2024, according to SNE Research via Yonhap News.
CATL leads the global EV battery market with a 36.8% share, while BYD ranks second at 16.8%, according to QQ News. Together, they accounted for 53.6% of the market as global battery usage rose 25.0% to 686.7 GWh from January to October 2024.
CALB, Gotion High-tech, EVE, and Sunwoda hold 4.8%, 2.6%, 2.4%, and 2.1% market shares, ranking fourth, eighth, ninth, and tenth, respectively.
China's global battery dominance is fueled by strong domestic demand and government support, bolstering the competitiveness of its manufacturers.
CATL reported 76.6 GWh of battery usage, a 7.8% year-over-year increase, retaining the top market share even outside China. Key clients include Tesla, BMW, Mercedes-Benz, Volkswagen, and Hyundai. To address oversupply, CATL is expanding exports to Brazil, Thailand, Israel, and Australia.
SNE Research credits the growth of Chinese battery makers to the shift from ternary lithium to LFP technology, which offers lower costs, greater reliability, and improved safety despite having lower energy density.
Once dominated by Chinese producers, LFP batteries are now globally adopted for their cost and safety benefits, prompting manufacturers outside China to prepare for mass production.
Surging battery demand and China's burgeoning influence
Global battery demand is set to surpass 1 TWh next year, according to Yahoo Finance. EV Volumes predict demand will grow 30% year-over-year to 1,098 GWh in 2025, a sevenfold increase from 140 GWh in 2020. By 2035, demand is projected to reach 5,086 GWh.
Global EV sales grew 23% year-over-year in the third quarter to 4.65 million units, with September setting a record at 1.73 million units. Cumulative sales reached 12 million units with an 18.7% penetration rate. EV Volumes expects full-year sales to rise 19.3% to 16.96 million units, growing to 20.27 million units in 2025.
South Korean battery makers are losing ground to Chinese competitors, with CALB surpassing South Korea's second-largest producer in market share. CATL remains dominant globally and has expanded into the South Korean market.
Article translated by Levi Li
