China expands its grip on global electric vehicle battery production

China is increasing its dominance in the global electric vehicle battery market. In 2022, the two largest Chinese companies in this sector alone held half of the market share in the world.

Contemporary Amperex Technology (CATL), based in China, far dominates its global competitors in the production of batteries for electric vehicles. The company, which notably supplies batteries to automakers Tesla and Volkswagen, supplied around 37% of global supply between January and November 2022, according to new sales data compiled by the Korean firm SNE Research.

The second largest battery producer in the world, BYD, another Chinese company, held around 14% of the market share in 2022, thus taking this position from the Korean LG Energy Solution, now third in the world ranking. The one which held 21% of the world share of this market in 2021, only had 12% in 2022. The Japanese company Panasonic has also suffered a decline, but less pronounced, falling from 13% to 8% on the same period.

The domination of the two Chinese companies CATL and BYD has increased in the space of a year, thus further cementing Chinese domination in this highly coveted sector. Between January and November 2022, their sales accounted for nearly 51% of global supply – compared to 41% over the same period in 2021.

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