BYD Overtakes LG in Global Battery Industry Rankings

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In a significant shift towards electric vehicles (EVs), Contemporary Amperex Technology (CATL) emerged as the leading supplier of batteries in the global market in July 2021. The Chinese automobile and battery manufacturer supplied a capacity of 6.4 gigawatt-hours (GWh), according to recent reports.

CATL's dominance in the market is further underscored by its leadership in the year-to-date (YTD) market share, with a commanding 34.7% of the total sales. This places the company ahead of its closest competitors, LG Energy and BYD, who hold 14.2% and 12.6% of the market share, respectively.

The surge in battery sales is a testament to the growing global acceptance of EVs, with sales increasing by a staggering 80% year-on-year (YoY) in July, reaching a total of 39.7 GWh. This trend is being driven by various factors, including rising fuel prices that are encouraging drivers to switch to hybrids and battery-powered vehicles.

Interestingly, no specific automobile manufacturer is mentioned as the market leader in the YTD market share. However, it is clear that automakers are electrifying their fleets at an unprecedented pace.

The battery market is not without its challenges, though. Increasing material prices are driving up battery costs for manufacturers, putting pressure on profit margins. Despite this, Chinese battery makers, including CATL, are maintaining their pricing power, thanks to tight supply conditions.

The US is also attempting to lessen its reliance on Chinese minerals and components in EV production. This comes amidst growing geopolitical tensions and concerns over supply chain security.

It's important to note that the UK and Germany have recently cut subsidies for EV manufacturers, a move that could potentially slow down the adoption of EVs in these markets. However, the overall trend towards electrification seems unstoppable, with more and more countries setting ambitious targets for the adoption of EVs.

For those interested in staying updated on the latest developments in the EV market, access to over 350 other EV Market Reports is available for free.

This article was originally published by Bloomberg.