how the industry is concentrating more and more

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If the business of batteries for electric cars were a cake there would be a handful of diners putting on their boots and leaving nothing but crumbs for the rest. What’s more, if we went down to detail we would see that three of them account for two thirds of the entire cake. The data is curious in itself, but it leaves another even more interesting reading, especially if we want to understand what is happening at the great table of electric mobility: those guests with such a good serve come from Asia.

Okay, the slices of cake may be a hackneyed metaphor; but it helps to understand what happens in a particularly concentrated sector. Now let’s see what the figures say.

When the figures speak for themselves. The data collected by SNE Research they do not leave much room for interpretation: the battery business for electric vehicles is clearly championed by a small, select and well-identified club of firms. Their tables show that in 2021 there were a dozen suppliers that produced 92.8% of a key element for the industry.

The data shows a notable level of concentration in the industry that is repeated in the balance published by the same observatory with data from the first half of 2022 attending to MWh, but it is possible to go even a little further. Within that “Top 10” a more exclusive group can be clearly identified, a kind of “Top 3”, which in turn brings together 64%.


let’s talk about names. At the head of that list clearly stands out the Chinese company Contemporary Amperex Technology (CATL), which would bring together, according to SNE data on battery sales volume for the first half of the year, 39%. Last year he was the leader, too, although with a lower percentage. The Ningde-based firm was founded in 2011, has had Beijing’s backing and stands out for its production capacity. His weight in the sector has earned him, among other things, to appear in the list of the hundred most influential companies prepared by Time.

Its new sodium ion batteries stand out in particular and its interesting client portfolio includes relevant groups from inside and outside the Asian giant, such as Honda, BMW, Tesla, Toyota, Volkswagen, BAIC Motor, GAC Group or Xiamen King Long, among others. Many others.

And beyond CATL? Well, beyond the Chinese giant we find the South Korean in second position LG Energy Solutionswith 14% in the first half of the year, and the Chinese manufacturer endorsed by Warren Buffett BYDwhich occupies the third step with a share of 11%.

That at least is what the table published just a few days ago by the SNE Research consultancy shows. Its latest data for the first half of 2022 differs somewhat from the overall picture of last year or the august report, in which CATL figured with 34.8% and Panasonic ranked fourth with 9.6%, for example; but they throw a general photograph that stays in the basics. The “Top 10” is completed panasonic, SDI, SK On, Guoxuan, CALB, EVE Y SVOLT. Among the ten they add plants in different parts of the globe and a wide portfolio of clients.

A phenomenon that can also be read on the map. That’s how it is, SNE data they do not show only that the business is concentrated at the corporate level in a few companies. The figures reflect that this agglutination also has a reading at the territorial level. The firms that head the SNE list are spread across Asia, with China having undeniable weight and the presence of South Korea and Japan.

Last year, the main Asian manufacturers already accounted for 92.8% of the production of batteries for electric vehicles. Its other interpretation, of course, is the lack of representation of firms from other parts of the globe, including Europe. To remedy this deficiency, remember Expansion, there are companies that aspire to set up cell factories in the EC with an annual capacity of approximately 700 GWh. volkswagen has already started in Germany the construction of the gigafactory of its new division, PowerCo, which foresees mount another in Sagunto.

A growing market. SNE reflects another relevant fact: the increase in sales of electric vehicles throughout the first half of 2022. Despite the challenges facing the industry due to energy costs and the scarcity of materials, the agency has registered a notable increase in sales, of 65%, compared to the same period in 2021. Although by manufacturers highlights teslathe Chinese BYD has achieved remarkable growthstrengthening itself in the Chinese market.

The data shows that China is much more than a key player in the industry; it is also of the market. The data broken down by Bloomberg They indicate that in July, 486,000 low-emission vehicles were sold in the Asian giant, including electric, plug-in hybrid and fuel cell. The increase, which exceeds expectations, is largely due to applied policy by the authorities and points to a sales record for this same year.

If the business of batteries for electric cars were a cake there would be a handful of diners putting on…

If the business of batteries for electric cars were a cake there would be a handful of diners putting on…

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