According to the latest report released by SNE Research, a South Korean market research organization, the global power battery market from January to October 2024 continues to show strong performance from Chinese manufacturers. According to the report, the market share of China’s top six power battery manufacturers has reached 65.5%, accounting for almost two-thirds of the global market, while the market share of Japanese and Korean manufacturers continues to decline, with South Korean and Japanese manufacturers in particular being challenged in the battery supply chain.
Chinese vendors continue to expand with significant market share growth
The report states that during January-October 2024, the share landscape of the global power battery market has undergone a fundamental change. The strong growth of Chinese manufacturers has enabled them to capture 65.5% of the global power battery market, with Ningde Times (CATL) and BYD remaining the global market leaders. Ningde Times continues to be the world’s largest supplier of batteries for electric vehicles, with a market share of 36.8%. BYD, on the other hand, ranked second globally with a market share of 16.8%, further strengthening its competitiveness in the global EV battery market.
In addition to Ningde Times and BYD, other Chinese power battery makers, such as Beehive Energy and Guoxuan Hi-Tech, have also achieved significant share gains in the global market. six Chinese companies have seen double-digit year-on-year growth in their installed base, far outpacing their peers and demonstrating the growing importance of Chinese battery companies in the global EV supply chain.
South Korean manufacturers face market share decline
In contrast, South Korea’s three largest power battery manufacturers – LG Energy Solution (LG Energy Solution), SK On and Samsung SDI – have seen their market share decline significantly.In January-October 2024, the combined market share of the three fell from 23.7% in the same period last year to 20.2%, a decrease of 3.5 percentage points year-on-year. Although LG Energy Solutions remained firmly in third place globally with a market share of 11.8%, its market share declined from 2023.LG Energy Solutions mainly benefited from the revamping of Tesla’s Model 3, which drove a surge in its related orders and increased sales.
SK On, on the other hand, saw its market share fall to 4.5% from 5.2% last year, still maintaining its fifth position globally. The company, which mainly supplies power batteries to brands such as Hyundai, Kia and Mercedes-Benz, saw its market share drop reflecting intense competitive pressures despite a stable customer base.
Samsung SDI’s situation is even more dire, with its market share falling to 3.8% from 4.7% last year, dropping its ranking to seventh globally. Samsung SDI mainly provides batteries for brands such as BMW, Rivian and Audi, and its market share decline reflects the company’s weakened competitiveness in the global electric vehicle battery market.
Japanese manufacturers face greater challenges, Panasonic suffers double pressure
Japan’s Panasonic’s share of the global power battery market declined particularly significantly. Panasonic’s market share fell from 6.6% to 4.1%, a simultaneous decline in market share and installed capacity among the world’s top 10 power battery suppliers. Panasonic’s sales decline was primarily impacted by the discontinuation of the Tesla Model 3 minor modifications and a slowdown in Tesla’s overall sales. Tesla is an important battery supply customer for Panasonic, and the slowdown in sales has directly impacted its battery demand.
However, Panasonic has now launched improved versions of its Tesla 2170 and 4680 batteries, which are expected to help restore its market share in the future. The company plans to invest more in R&D and enhance its partnership with Tesla in a bid to regain its growth momentum in the coming years.
Future outlook: global battery market becomes more competitive
The competitive landscape of the global power battery market is undergoing profound changes. The strong rise of Chinese manufacturers and the decline in market share of Japanese and Korean manufacturers not only reflect the technological and productivity competition in the global electric vehicle industry, but also reflect that the center of gravity of the global industrial chain is gradually shifting eastward. Chinese power battery manufacturers have gradually occupied a dominant position in the market through technological innovation, production capacity enhancement and optimization of the global supply chain layout.
For Japanese and Korean manufacturers, how to deal with the challenges of Chinese manufacturers, regain market share will become a major issue in the next few years. Japanese and South Korean battery makers need to accelerate technological innovation and strengthen cooperation with international electric vehicle manufacturers in order to retain a place in the increasingly competitive global market.
Conclusion
The change in the global power battery market landscape from January to October 2024 marks the rise of Chinese manufacturers in the electric vehicle industry, while the continued decline in the market share of Japanese and South Korean manufacturers reflects that the competition in the global power battery industry is entering a new phase. The strong performance of Chinese manufacturers has undoubtedly injected more vitality into the global electric vehicle industry, but it has also brought about more intense market competition, and the global battery market will usher in a more complex competitive situation in the future.
