On January 20th, the authoritative U.S. clean energy technology media, Clean Technica, released the annual report on the world's top 10 battery manufacturers for 2023. The report indicated that the demand for lithium-ion batteries in the light vehicle industry increased from 507 GWh in 2022 to 712 GWh last year, representing a growth of approximately 40%. Clean Technica believes that changes in global market demand are driving shifts in the influence and competitive rankings of major battery manufacturers in the industry, and this trend is expected to continue into 2024.
The report highlights that in 2023, the growth rate of battery production for light electric vehicles (cars, SUVs, LCVs, and pickups) at +40% outpaced the overall electric vehicle growth rate at +35%. This is attributed to the introduction of larger vehicle models in the market, which incorporate more batteries.
The report reveals that CATL continues to lead, with its market share increasing from 32% to 34%, thanks to higher-than-average growth. This is attributed to the success of Tesla's Model Y manufactured in China, SAIC's MG4/Mulan, and Ideal Auto, among others. With the recent introduction of new products like Kirin and Shenxing batteries, CATL's market share is expected to further consolidate its leading position through 2024 and beyond.
Fast-growing BYD (with a YoY growth of 59%) surpassed LG to claim the second position. Alongside the rise of BYD's automotive brand, BYD Battery (Fudi Battery) increased its share from 14% in 2022 to 16% in the same period in 2023. Growth also came from supply deals with third parties, including Tesla's Model Y manufactured in Germany, Toyota bZ3 in China, Changan UNI-V, Dongfeng Nissan Qichen V-Online, as well as several models from Haval and FAW. With brands like Kia and SsangYong set to contribute in 2024, BYD is expected to further increase its market share in 2024.
LG's market share decreased from 17% in 2022 to 15% at the end of 2023. Clean Technica attributes this to lower-than-expected sales on the customer side, with General Motors' electric vehicle market performance being weak, some key models (like Renault Zoe) nearing the end of their product lifecycle, and slower sales growth for other customers (such as Mercedes-Benz or Ford).
Despite variations, the top three battery manufacturers still account for two-thirds (66%) of total battery deployments, indicating an increased concentration compared to 2022 (63%). This underscores the importance of scale in the dynamic battery market.
