CATL stands firm, leads the global EV battery market share

China-based Contemporary Amperex Technology Co. Limited (CATL) retains the top spot in the electric vehicle (EV) battery arena. Said company currently has 37.1% global EV battery market share. CATL is now the five-year leading manufacturer of lithium-ion batteries for EVs.

Electric cars do not need gasoline and depend solely on batteries to run. Most EVs are powered by rechargeable lithium-ion batteries that usually demand lower costs than gassing up.

As such, EVs as an alternative to gasoline cars is a promising innovation in terms of sustainability and cost. Notably, CATL and other Asian EV battery manufacturers have been leading the global market share board. Such is based from the data of consulting firm SNE Research.

CATL grew from 32.3% to 37.1%. The second top manufacturer is BYD, another Chinese battery manufacturer at 13.6%. Subsequent are South Korea’s LG Energy Solutions and Japan’s Panasonic, with market shares of 12.3% and 7.7%, respectively.

Progression of EV Batteries

Like any other product, EVs also faced consumer reluctance due to pressing factors such as cost, sustainability, and scalability. There were rippling opinions on the many electric car batteries for sale in the market, who made the battery, how an electric car battery is made, and how far a fully charged battery will cover.

“Specific barriers to EV proliferation, such as range anxiety, high upfront cost, extended charging periods, and lack of sufficient and all-congruent charging infrastructure, still requires a prominent solution,”

said the International Energy Agency, an autonomous intergovernmental organization.

Such led to more research on batteries to extend an EV’s battery life while compressing its size and reducing its cost. There are also researches on utilizing Battery Swapping Stations (BSS) to expedite the adoption of EVs and EV batteries. 

The news on faster charging batteries and how new car batteries charged for optimized performance led to the wide acceptance of both EVs and EV batteries. Most recent advancements in EV battery design have enabled a 10-minute charge time for a typical EV battery.

In 2022, CATL, also dubbed the Battery King launched its latest battery technology as a startup breakthrough for long-duration batteries. The “Qilin”, a recent CATL battery innovation, can power an EV to run 1000 km on a single charge. Such is another astonishing breakthrough compared to the usual fully-charged battery electric vehicles (BEVs) that can run only up to 402 km.

China’s CATL battery technology persists in overwhelming the world as this EV-EV battery supply chain surfaces. The supply chain involves producing and distributing EVs and EV batteries, from sourcing raw materials to delivering finished vehicles to customers. 

Said supply chain is different from the other industries. This is due to the complexity of the production of EVs and the requirements for investments to cope with the rising demand for EVs and EV batteries.

The ‘Battery King’s’ presence in the Asian Market

Like any other product, EVs also faced consumer reluctance due to pressing factors such as cost, sustainability, and scalability. There were rippling opinions on the many electric car batteries for sale in the market, who made the battery, how an electric car battery is made, and how far a fully charged battery will cover.

“China plans to make all new vehicles sold in 2035 eco-friendly, part of a goal that promises to give a tailwind to Japanese automakers like Toyota Motor, which specializes in hybrid engines,”

according to NikkeiAsia. 

SNE Research emphasized China’s emergence as the top seller of EVs in the Asia-Pacific Region in 2022, with over 1.8 million electric cars sales from January to August last year. Other Asian countries are South Korea which placed seventh at 333.83 thousand electric car sales, and Japan at 273.71.

Such trend means excellent news to Asian EV battery manufacturers.  As the demand for EVs increases, the marketability for EV batteries also grows.

According to Asian experts, CATL still has a competitive advantage over other businesses due to its monopolistic market position and massive production volumes.

CATL also offers battery swapping (EVOGO) to ten cities in China. The EVOGO service allows users to swap their batteries in less than a minute. It aims to amplify further standards and safety on using CATL’s batteries. 

At the onset of 2023, said company inked a Memorandum of Understanding (MOU) with UL Solutions to provide safer and higher quality EV batteries and Battery Energy Storage Systems.

The collaboration enabled the EV battery leader to acquire UL Solutions’ qualification to test UL1973, UL 9540, and UL 2580. These ensure that the batteries meet the standards for; (1)  Batteries for Use in Stationary and Motive Auxiliary Power Applications, (2) Energy Storage Systems and Equipment, and (3)  Batteries for Use in EVs.

EV batteries as a ‘gold mine’ in Asia

CATL and other Asian battery manufacturers continue to make headway in the EV industry. As a leading producer of  lithium-ion batteries for EVs, they usher in continuous research and development (R&D) and the capability to supply the growing demand for lithium-ion battery packs.

As such, any disruption in the prices and availability of raw materials for batteries in Asia would have a great impact on the prices of EVs and EV batteries. Notably, R&D for battery innovations leads to cheaper costs and higher-quality EV batteries. 

With the rising demand for electric cars, EV batteries are forecasted to be in the spotlight. They have the potential to completely replace internal combustion engine vehicles to reduce cost, promote sustainability, strengthen resourcefulness, and maintain market equilibrium. Thereby, securing CATL’s dominant portion in the EV battery market share and Asia’s sovereignty in the EV battery industry.