BYD regains title as world's No. 2 EV battery supplier

BYD Co., the world’s largest new energy vehicle maker, powered past LG Energy Solution as the world’s second-largest electric vehicle (EV) battery supplier in the first quarter this year, reinforcing China’s dominance of the industry as EV adoption gains pace globally.

According to data released May 7 by South Korean market researcher SNE Research, BYD installed 22.7 gigawatt hours (GWh) of batteries between January and March, an increase of 11.9% from 20.3 GWh in the same period a year ago.

The Shenzhen-based company now commands a global market share of 14.3%, down from 15.6% a year ago but up from 13.1% in the January-February period, when sales of its new energy vehicles dropped 6.14% year on year, resulting in a year-on-year drop of 3.1% in installation volume of batteries accordingly to 12.1 GWh.

BYD's installed capacity of batteries exceeded 100 GWh for the first time last yearto claim a market share of 15.8%, overtaking LG Energy Solution to rank second globally.

Assuming each new electric vehicle is equipped with 50 kWh of electricity (equivalent to 50 units), 100 GWh of batteries can support approximately 2 million new energy vehicles.

BYD, which is backed by Warren Buffett’s Berkshire Hathaway, now only trails domestic rival Contemporary Amperex Technology (CATL).

South Korea's LG Energy Solution, which overtook BYD as the world’s second-largest EV battery supplier in January and February, supplied 21.7 GWh of batteries, an increase of 7.8% year on year and accounting for 13.6% of the global market for a third place, down from 15.4% a year earlier and lower than the 13.7% in the January-February period.

CATL, which supplies not only Chinese EV giants such as Zeekr and Li Auto but also foreign carmakers such as Tesla, BMW and Volkswagen, remained the world's largest battery maker in the January-March period.

CATL, which has remained a distant market leader in seven consecutive years, was the only battery supplier with a global market share of more than 30% in the first quarter.

The Ningde, southeastern China's Fujian Province-based firm saw its installed battery volume expand 31.9% from a year ago to 60.1 GWh, up from 45.6 GWh in the same period last year and taking a global market share of 37.9%.

With a market share of 36.8%, CATL was the only EV battery supplier in the world that had an installed capacity exceeding 200 GWh in 2023.  

Chinese battery makers have been stealing a march over their global rivals amid galloping EV sales in the country. The country's new energy vehicle sales, including battery-powered EVs and plug-in hybrids, were estimated to hit 800,000 units in April, up 33% on the year and a 2% drop from the month before, according to data from the China Passenger Car Association.

BYD, through its battery unit FinDreams Battery, already supplies some batteries to Tesla's new tab Berlin plant and Chinese automakers including FAW.

Most BYD batteries go to its own EVs. According to battery industrial information provider Gaogong Industrial Institute, BYD only sold 5% of the batteries it produced in 2023 to external clients.

BYD’s blade lithium iron phosphate battery packs, with the first generation launched in 2020, have proved to be popular with drivers and car assemblers. The battery cells are arranged in a pattern that increases energy density while enhancing resistance to overheating. 

The blade batteries are installed in most BYD models, such as the low-cost Seagull, Dolphin electric hatch, and Atto 3 SUV. The firm is expected to launch its next generation blade batteries later this year to promote more range at an even lower cost.

In the January-March period, global EV battery installation volume reached 158.8 GWh, up 22% from 130.2 GWh in the same period last year, according to SNE Research.

Six of the world’s top 10 battery makers are from China. Apart from CATL and BYD, CALB is in seventh place with a 4% share; Eve Energy’s 2.3% share places it eighth; Gotion High-Tech is in the ninth position with a 2.1% share and Svolt ranks 10th with a market share of 1.7%.

SNE Research said that the eight-day Chinese Lunar New Year holiday, which started February 10 this year, has a significant impact on the sales of automobiles in the country. As a result, the market share of batterymakers was distorted during the January-February period. But the first quarter data have more accurately reflected the market share of electric vehicle battery companies.