China’s BYD jumps to second spot in global EV battery ranking
SHANGHAI: Build Your Dreams (BYD) Co jumped to second place in the global electric vehicle (EV) battery rankings in July, overtaking LG Energy Solution Ltd as China’s demand for clean cars surges.
The Chinese car and battery maker supplied 6.4 gigawatt hours (GWH) of batteries in July, trailing only giant Contemporary Amperex Technology Co Ltd (CATL) with 13.3 GWH.
LG Energy slipped to third with 4.4 GWH, followed by Japan’s Panasonic Holdings Corp at 2.9 GWH, according to data released by Seoul-based SNE Research yesterday.
The report showed global battery sales rose to 39.7 GWH in July, up 80% from a year earlier.
The year-to-date market share rankings were unchanged, with CATL at the top with 34.7% of the market, followed by LG Energy at 14.2% and BYD third with 12.6%.
Demand for EVS continues to soar as high petrol prices spur drivers to switch to hybrids and battery-powered cars, and carmakers electrify their fleets.
Still, EV makers face challenges, with the United Kingdom and Germany slashing subsidies, the United States pushing to reduce reliance on Chinese minerals and components, and surging material prices pushing up the cost of batteries.
Another Chinese company, China Aviation Lithium Battery Co, was ranked sixth by sales in July, overtaking Samsung SDI Co.
Chinese firms led overall growth in the EV battery industry in July, while the total market share of South Korea’s three battery makers, LG, Samsung and SK declined to 25.9% from 34.2% a year ago, SNE said.
Chinese battery makers appear to be sustaining their pricing power amid tight supply while China’s battery usage is expected to almost double this year on surging sales of new-energy vehicles, according to Bloomberg Intelligence.
Meanwhile, South Korean battery makers need a new strategy to counter EV subsidies such as new US rules that favour Americanmade EVS and batteries, as well as rising “scepticism” about EVS in Europe, according to SNE. — Bloomberg