In this article, we will be taking a look at the 12 biggest battery manufacturers in the world. To skip our detailed analysis of the battery market, you can go directly to see the 5 Biggest Battery Manufacturers in the World.
With the increasing shift towards electric vehicles (EVs), the global demand for batteries has seen major amounts of growth. According to the Wall Street Journal, the global sales of electric vehicles reached around 7.8 million which accounted for around 10% of the total auto sales for the year. The number of electric vehicles sold in 2022 saw a 68% increase from 2021 according to research from LMC Automotive and EV-Volumes.com. Meanwhile, the market share of electric vehicles was 11% of total car sales in Europe and 19% of total car sales in China. However, when plug-in hybrid vehicles which also have a small combustion engine are taken into account, the market share of electric vehicles in Europe increases to 20.3%. While the share of completely electric vehicles in the United States was lower at 5.8% in 2022, it was still a major jump from 3.2% in 2021.
The increase in market share for electric vehicles is projected to continue. According to a report prepared by BloombergNEF, the market share of electric vehicles is projected to reach 40% by 2030. This rise is directly correlated with a projected increase in battery manufacturing. Atlas Public Policy has estimated that the investments in battery manufacturing in the United States alone reached $73 billion in 2022 which was three times as high as the investments in 2021. BloombergNEF also pointed out this trend in the rise of battery manufacturing, citing a 38% rise in battery manufacturing capacity since 2021.
While the investments in battery manufacturing have been global, the market is still dominated by China. The New York Times estimates that China produces about 75% of all electric vehicle battery cells and does more refining of the major raw inputs than every other country in the world combined. It also had more electric vehicles sold than the rest of the world combined along with exports of electric vehicles rising to $3.2 billion in worth by November 2022. The country has 5 of the largest EV battery makers in the world according to market share.
These battery manufacturers dominate the market, with the top 10 battery manufacturers accounting for more than 90% of the market share while the top 5 battery manufacturing companies account for around 75% of the total market share. According to a report by Goldman Sachs, the top six players in the cell manufacturing market will continue to dominate the market shares through 2030, when they will have a projected 61% market share despite a much larger market with more producers. The report also predicts that the total addressable market for batteries will grow to 2.8 TWh by 2030. While the production of batteries increases, it is also projected that battery prices will decrease due to the introduction of battery innovations that aim on reducing the costs of production via more efficient processes as well as cheaper outputs. Like other battery and automotive manufacturers such as Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and General Motors Company (NYSE:GM), the battery manufacturers listed below are revolutionizing the automotive industry today.
12 Biggest Battery Manufacturers in the World
charlotte-stowe-WkqHU1G2_sg-unsplash
Let's now take a look at the 12 biggest battery manufacturers in the world.
Our Methodology
In order to shortlist these companies, we took a look at all the major battery manufacturing companies in the world. Next, we looked at the latest market share numbers for each of these companies according to a press release by SNE Research. We shortlisted two other companies based on their market shares in 2021.
Market share as of July 2022: NA (1% in 2021)
Farasis Energy (Gan Zhou) Co., Ltd. is a battery manufacturing company focused primarily on the research, development, and commercialization of lithium-ion power batteries for electric vehicles based in China. It also provides integrated solutions for new energy vehicle manufacturers.
The company is the designated battery supplier of Jiangling Motors Electric Vehicle and was the second main supplier for GAC Aeon, providing batteries for the Aion S and Aion V along with a few other models. In 2021, it ranked 10th with 2.91 GWh of power battery installed and accounted for 1% of the global market share. It has also released its new sodium-ion batteries in order to diversify its products and cater to different consumers. For the first 9 months of 2022, it generated a revenue of $1.2 billion.
While Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and General Motors Company (NYSE:GM) are more conventional names investors are interested in when it comes to the automotive and battery industries, Farasis Energy (Gan Zhou) Co., Ltd. is a rising player worth taking a look at.
Market share as of July 2022: NA (2% in 2021)
Envision AESC is another manufacturer of lithium-ion batteries for electric vehicles and was a joint venture of Nissan Motor Company, Ltd., NEC Corporation, and NEC Tokin Corporation and is based in Zama, Japan.
The company is one of Benchmark's Tier One battery suppliers and became Renault's strategic partner for full electrification in June 2021 with a five-year purchase order of 40GWh to 120GWh power batteries. It is also the battery supplier for Nissan Motor Co., Ltd.'s EVs and has begun construction of its second battery factory in the United Kingdom. Its first plant operates 1.9 GWh since 2012 while the second plant is expected to have an annual capacity of 12GWh once it is on stream in 2025 and is forecasted to expand up to 25GWh by 2030. Envision AESC announced that its latest generation batteries will have 30% higher energy density and plan to provide enough batteries for 100,000 EVs annually. It has also announced to build gigafactories in Douai, France, the United States, Japan, and Spain with an aim to reach a capacity of 300GWh by 2026.
Market share as of July 2022: 1.3%
Svolt Energy Technology Co., Ltd. is a manufacturer and distributor of electric vehicle batteries based in Jiangsu, China. It also produces cathode materials and energy storage systems in its 12 global manufacturing bases.
In 2021, Svolt Energy Technology Co., Ltd. had a capacity of 2.42GWh but has announced an annual capacity target of 600 GWh by 2025. Currently, the company supplies a number of automobile manufacturers including Dongfeng Motor Group Co., United New Energy, XPeng Inc., and Geely Automobile Holdings, and has partnered alongside Sunwoda Electronic Co., Ltd. to set up dedicated production lines to manufacture Li Auto's self-developed battery packs. It has also announced plans to build a lithium-ion cell factory in Germany by the end of 2023. The company was given the go-ahead to go public on the Shanghai Stock Exchange's Star Market in November 2022 with an expectation of raising $2.1 billion and plans to invest the proceeds to expand its production capacity in 3 projects alongside an expansion of its research and development. The company announced its new battery technology, the Dragon Armor battery packs, with an expected range of up to 1,000 km. In the first half of 2022, it generated a revenue of $516.7 million.
Market share as of July 2022: 1.5%
Sunwoda Electric Vehicle Battery is a subsidiary of Sunwoda Electronic Co., Ltd. and is based in Shanghai, China. The company provides electric vehicle battery pack solutions through its advanced lithium battery integration technology and supplies its products to automobile manufacturers including Volvo Car AB, Dongfeng Motor Group Co., and XPeng Inc.
It has recently also partnered with the Dongfeng Motor Group to build a battery factory in Yichang with a production capacity of 30GWh and has also announced battery factories in Zhuhai and Shifang cities with annual capacities of 30GWh and 20GWh respectively. Sunwoda Electric Vehicle Battery also raised around $870 million (6 billion Yuan) from funds in August and had a revenue of around $1.14 billion in 2022.
Market share as of July 2022: 2.9%
Gotion High-tech Co., Ltd. is another developer and manufacturer of lithium-ion batteries based in Anhui, China. It also specializes in energy storage applications, power transmission, and distribution equipment and became the first publicly traded power battery company in China in 2015.
It provides batteries for a number of major original equipment manufacturers including Volkswagen AG, Changan Automobile, Great Wall Motors, and Geely Automobile Holdings. The company had a revenue of around $1.99 billion in the first three quarters of 2022, a year-on-year growth of 152%. In the third quarter, it had an operating income of around $840 million and a net profit attributable to shareholders of around $120 million which was a 355% increase compared to last year. The company has also signed an MoU with a Slovakian company to co-establish a battery factory with an annual capacity of 40GWh by 2025.
Market share as of July 2022: 4.1%
CALB Group Co., Ltd. is a producer of lithium-ion power batteries, energy storage systems, battery management systems, and related products based in Jiangsu, China. The company is also known as China Aviation Lithium Battery Technology and was founded in 2007.
The company recently became an official supplier to Japan's Honda Motor Co. and already has major automotive customers including XPeng Inc.m GAC Toyota, Geely Automobile Holdings, and NIO Inc. CALB Group Co., Ltd. has seen an enormous growth of 321% between 2016 and 2020 and produced 11.9GWh in 2022. The company also had a $1.7 billion listing in the Asian financial hub according to Bloomberg. According to its chief executive, the company will expand its capacity to 100 GWh in 2023 and it aims to reach a total capacity of 500 GWh in 2025.
Market share as of July 2022: 4.9%
Samsung SDI Co., Ltd. is a division of Samsung Electronics Co., Ltd. and is a manufacturer of energy storage systems, electronics, and renewable energy technologies based in South Korea since 1970. It has a number of EV battery plants in South Korea, China, Malaysia, and Hungary.
The company supplies a number of major automotive manufacturers including Bayerische Motoren Werke Aktiengesellschaft, Ford Motor Company, Volkswagen SA, Hyundai Motor Company, and Volvo Car AB. In its 2022 annual report, the company reported a record revenue of around $15.4 billion and an operating profit of nearly $1.4 billion. The company plans to expand its capacity to 60 GWh by the second half of 2030 and has partnered with Stellantis N.V. to build a $2.5 billion battery plant in the United States with an annual capacity of 23 GWh when it kicks off in 2025.
Like Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and General Motors Company (NYSE:GM), Samsung SDI Co., Ltd. is a more renowned name making its way in the battery and automotive industries today.
Click to continue reading and see the 5 Biggest Battery Manufacturers in the World
Suggested articles:
Disclosure: None. 12 Biggest Battery Manufacturers in the World is originally published on Insider Monkey.
In this article, we discuss lithium battery production by country. If you want to read about some top countries in terms of lithium battery production, go directly to Lithium Battery Production by Country: Top 5 Countries.
Several countries are key players in the battery tech manufacturing industry and claim a major share of the global market. These countries are home to large battery manufacturers, and often have well-developed supply chains and infrastructure to support the production of batteries on a large scale. Some of the key battery tech manufacturing countries include China, Japan, South Korea, the United States, Germany, and India. These countries have big EV firms like Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and XPeng Inc. (NYSE:XPEV).
We talked about the 10 most advanced battery technologies in a separate article in detail. Battery tech manufacturers are situated around the world, and they produce a wide range of battery types, including lithium-ion batteries, lead-acid batteries, and nickel-metal hydride batteries, among others. Many small countries are also involved in the production and development of batteries. As technology is emerging, many countries across the globe are beginning to enter the battery manufacturing industry.
Chinese firms dominate the electric vehicle (EV) battery market, accounting for 56% of the market share. Four of the ten largest battery manufacturers are based in China. South Korean companies and Japanese firms also have a significant presence in the market. Several major battery companies are based in the United States, including QuantumScape, A123 Systems, Enovix, SES AI, and Amprius Tech.
Considering lithium reserves, Chile has the largest known reserves of lithium in the world, with a total of 8 million tons. This puts it ahead of other countries with significant reserves, such as Australia (2.7 million tons), Argentina (2 million tons), and China (1 million tons). In Europe, Portugal also has smaller deposits of lithium.
The global battery technology market size is expected to grow from $95.7 billion in 2022 to $136.6 billion by 2027 at a compound annual growth rate of 7.4%. The adoption of electric and hybrid vehicles and the increasing usage of wearable devices are responsible for the growth of the battery technology market size. Some other sectors, such as solar and wind energy systems, are also emerging and the world is making its way towards environment-friendly energy.
The global adoption of electric vehicles (EVs), falling battery prices and increased investment by top automobile OEMs are what are fueling the growth of the total EV battery industry. Additional factors include increased investments in expanding lithium-ion battery capacity, the expansion of battery-as-a-service systems, and rising acceptance of electric mobility in emerging nations, all of which present major market prospects.
The factors that limit the global EV market include the less energy-dense batteries and probable shortage of lithium mining capacity, and possible safety concerns with EV batteries are posing a threat to the market's expansion for EV batteries. Considering the EV battery production by country, with a 56% market share, Chinese companies lead the industry. China is home to many in the top 10 battery producers list. Japanese and South Korean businesses are likewise well-represented in the sector. Furthermore, Chinese battery is also leading in the battery supply chain, mining metals and refining battery components, etc.
Korean companies contributed a 26% share in global EV battery production last year. Samsung SDI, SK On and LG Energy Solutions are a few notable contributors to the market. The aforementioned companies provide EV batteries to automotive giants such as Tesla, Ford Motors and General Motors. Japanese companies are another key player in EV battery production with 10% of the total EV production worldwide. Companies such as Panasonic ranks 4th among the world’s largest battery-producing companies.
Around 948 GWh of lithium-ion (Li-ion) battery capacity is currently deployed globally. Out of this, the global EV battery production capacity is almost 274 GWh. If the recent trends in the adoption of EVs and E-mobility are considered, several thousand GWh of batteries will also be needed to accommodate the tens of millions of EVs that will be added each year.
Between 2021 and 2027, the demand for Li-ion batteries from light vehicles will expand at a compound annual growth rate (CAGR) of about 40%, reaching roughly 2,050 GWh as predicted by S&P Global Mobility. In the same time frame, installed battery capacity will increase by 23.5% CAGR to 3,371 GWh in 2027.
The Asia-Pacific region again takes the lead when the largest lithium battery producers are concerned. Several major companies in the list of largest lithium battery producers are from China. Notable names include CATL and BYD with a total production capacity of 137.7 GWh and 51.5 GWh respectively in the year 2022. The US was able to produce 44 GWh of lithium-ion batteries in 2021, and by 2025, that capacity is expected to increase to 91 GWh. The development of technology in the US has had a significant impact on battery production as well. The US provided the majority of cutting-edge battery technology.
Our Methodology
These were picked from a careful assessment of the battery industry. The details of each battery tech country are mentioned alongside a discussion around top firms in the sector in order to provide readers with some context for their investment decisions. The countries have been ranked according to their share of global lithium-ion battery manufacturing capacity in 2021.
Lithium Battery Production By Country: Top 12 Countries
Share of global lithium-ion battery manufacturing capacity in 2021: 0.1%
In 2021, Western Australian mines produced about half the world's lithium, at an estimated 55,000 metric tons. Recent years have seen an increased number of lithium battery manufacturing facilities begin their production in Australia. This lithium is used for electric vehicles and other product batteries. Australia’s lithium production is set to increase by 24.5% to 68.45 thousand tonnes in 2022. Lithium output is expected to increase at a compound annual growth rate of 14.2% to 116.24 kt in 2026.
Pilbara Minerals is the biggest lithium mining company in Australia. Pilbara produces over 377,000 metric tons of lithium every year. Greenbushes is Australia's largest lithium mine, of the 55,000 tonnes of lithium mining in the country in 2021. In 2021 Australia has supplied roughly half of the world’s lithium.
Australia also has dozens of new battery startups. Evergreen, Greensync, Carnegie Clean Energy, RayGen, Bell Resources and Graphene Manufacturing Group Ltd are a few famous ones. Energy Renaissance produces climate-optimized lithium-ion batteries for domestic and commercial users in Australia. The biggest battery in the world is in Australia named The Victorian Big Battery. This battery can store enough energy to power more than one million Victorian homes for 30 minutes. The battery has a capacity of 100 MW/129 MWh and can provide critical grid support services, such as frequency control and ancillary services, to help stabilize the grid during times of high demand.
Just like Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F) in the US and XPeng Inc. (NYSE:XPEV) in China, Australia is also home to some of the largest battery firms in the world.
Share of global lithium-ion battery manufacturing capacity in 2021: 0.3%
UK has several EV battery companies such as British Volt, Aceleron, Williams Advanced Engineering, Zenobe, Moixa and Oxis Energy etc. As the world is gradually shifting from fossil fuels to renewable energy resources, the UK government plans to ban the sale of diesel and petroleum cars by 2030. Hence, there is a growing demand for batteries in automobiles, aerospace, electrical utilities and other related sectors.
The government of the UK has promised nearly £500 million in the next four years for mass-scale production of batteries. British Volt has plans for a £2.6bn Gigafactory in Northumberland on the site of the former Blyth Power Station. The Company will produce 300,000 lithium-ion battery packs each year. These will be supplied to the automobile electric industry.
Share of global lithium-ion battery manufacturing capacity in 2021: 0.6%
Sweden is home to several EV battery companies. Sweden's auto market recorded an electric vehicle share of 46.1% in August 2022 as fully electric cars grew their shares. In August, Volvo Group began the process to establish a large-scale battery cell factory in Sweden. The company plans to gradually increase capacity and reach large-scale series production by 2030. The battery cells will be manufactured specifically for commercial vehicle applications, busses, trucks and electric drivelines for other different applications. Volvo said that by 2030, at least 35% of their products will be electric.
Northvolt AB is a Swedish battery maker and plans to deliver batteries with an 80% lower carbon footprint. Northvolt has a target of 150GWh for annual cell output by 2030. Northvolt Ett will produce 16GWh of battery capacity per year. The company will scale up its production at a later stage to potentially 40GWh.
Share of global lithium-ion battery manufacturing capacity in 2021: 1.6%
When it comes to technology and innovation in the electric vehicle sector, Germany is one of the leading countries in it. The country is home to some of the best electric vehicle makers including Volkswagen and Tesla. Millions of tons of lithium are mined in places far away from Germany to produce lithium-ion batteries every year. These batteries are used in electric vehicles, grid energy storage and wearable technology.
Scientists at KTI have invented a minimally invasive technology to mine lithium in geothermal plants in Germany. Using this technology thousands of tons of lithium could be extracted from the German and French Upper Rhine trench every year.
The government of Germany has approved a plan to spend $6.1 billion over three years to increase the number of charging points for electric vehicles across the country. The country will increase its charging stations by 14 times. Germany has 70,000 charging stations now and plans to reach 1 million by 2030. The country also plans to have fifteen million electric vehicles on the road by 2030. Currently, there are 1.5 million electric vehicles in Germany.
Share of global lithium-ion battery manufacturing capacity in 2021: 2.4%
Japan has highly profited from the increasing demand for EV batteries and consumer electronics. Japan is producing batteries worth nearly 930 billion Japanese yen (JPY) yearly. The battery producer covers the entire battery industry by producing batteries from watch button cells to lead acid car batteries. Japan has produced more than JPY 436 billion worth of batteries for electric vehicles. Nickel metal hydride batteries are worth 209 billion JPY. Lead acid batteries made by Japan are worth JPY 154 billion.
Some of the world’s biggest battery companies are located in Japan including Panasonic, Murata, Kyocera, Toshiba, ELIIY Power, FDK, Mitsubishi and EV Energy. Panasonic has a market share of 10%. In 2015, it was the only company to supply batteries to Tesla. It is working with Tesla to start production of its new 4680 battery, which is more than double in diameter compared to standard batteries. Panasonic has shipped more than 200 billion batteries across the globe since 1931. The company will triple its battery production by 2028.
In addition to Tesla, Inc. (NASDAQ:TSLA) and Ford Motor Company (NYSE:F) in the US and XPeng Inc. (NYSE:XPEV) in China, Japan is also home to some of the largest battery firms in the world.
Click to continue reading and see Lithium Battery Production by Country: Top 5 Countries.
Suggested Articles:
Disclosure. None. Lithium Battery Production By Country: Top 12 Countries is originally published on Insider Monkey.