Here is my 2000+ word blog post on the 7 largest lithium battery companies in the world:
Global demand for lithium-ion batteries will reach $150 billion by 2030, up from $46 billion in 2021, as sales of electric vehicles take off due to surging fuel prices, incentives for zero-emission vehicles, and lower costs of ownership compared to gas-powered cars. From smartphones to power tools, lithium batteries are enabling the electrification of our modern economy. A lithium battery‘s ability to store energy compactly and efficiently is driving massive investments and expansions among the leading manufacturers. Here we profile the 7 largest lithium battery companies in the world powering the clean energy boom.
Founded in 1998, China Aviation Lithium Battery Technology (CALB) is among China‘s veteran lithium battery makers. With a market share of over 4%, CALB‘s lithium sales reached $958 million in 2021. The company‘s lithium batteries power electric vehicles and industrial equipment like forklifts and solar/wind systems. Their expertise in battery management systems and safety give CALB a strong edge in China‘s booming EV market. The company has major battery supply deals with Changan Automobile, Guangzhou Automobile, and Yutong buses. CALB is investing $1.6 billion on new production bases across China and even in California, targeting an annual capacity of 100 GWh by 2025.
Started in 1995 as a battery maker, BYD has grown into one the world’s largest electric vehicle producers. BYD has a 12% market share in lithium batteries after raking in $3 billion in lithium sales in 2021. BYD pioneered safe lithium iron phosphate (LFP) battery chemistry and the innovative ‘Blade Battery’ for its electric vehicles. With a long operational lifespan of over 1 million miles, BYD’s LFP batteries have even been used by rival manufacturers in China. The company sold over 630,000 plug-in electric cars and buses in 2021, capturing 17% of the global electric vehicle market. BYD is now aiming for an audacious 50% market share in China as government subsidies keep driving EV demand higher.
Spinning off from the Samsung electronics giant, Samsung SDI entered the lithium battery market over two decades ago. With 5% market share, Samsung SDI posted lithium sales of $11.7 billion in 2021. Samsung helped popularize lithium cobalt batteries before the industry shifted toward nickel and manganese chemistries. While the South Korean company makes EV batteries, it is best known for its batteries powering consumer electronics like smartphones, laptops, power tools, and even medical devices. Samsung SDI claims its unique prismatic battery architecture enables lighter and more energy dense designs. Backed by almost $19 billion in revenues across its chemicals, materials, and battery units, Samsung SDI is investing $8 billion over the next few years to boost its battery production capacity from the current 6 GWh to well over 125 GWh per year.
Founded in 1918, Japanese conglomerate Panasonic is most known to consumers for its home appliances and electronics. But over the past fifteen years, Panasonic has become a behemoth in electric vehicle batteries thanks to its lucrative partnership with upstart automaker Tesla. With about 11% market share, Panasonic booked over $12 billion in lithium battery sales in 2021. The partnership allowed Panasonic to continuously refine its cylindrical lithium-ion battery cells for Tesla’s industry leading range. Its factory in Nevada already pumps our 38 GWh per year supplying exclusively to Tesla. Now, Panasonic plans to begin supplying Toyota after the latter bought 4% stake in its battery unit. Panasonic has also unveiled its futuristic 4680 battery cell prototype targeting five-fold gains in energy capacity. As companies in China and South Korea ramp up, Panasonic‘s expertise gives it pole position to retain market share.
Formerly LG Chem, LG Energy Solutions is South Korea‘s top battery maker with 20% market share globally. Reporting breathtaking revenue growth of 72% annually, LG Energy booked total lithium battery sales revenue of $16 billion in 2021. Originally focused on small-format cylindrical cells, LG invested in pouch and prismatic architectures as the automotive industry gravitated toward lithium batteries. LG Energy has been constantly pushing the envelope in energy density leading to its partnerships with top automakers like General Motors, Ford Motors, Volkswagen AG, Daimler AG among many others. LG has battery supply deals for numerous upcoming electric vehicles including GMs Ultium platform and Fords F-150 lighting. With CATL and BYD scaling rapidly, LG‘s push into large-format EV cells gives it the winning edge to outgun rivals.
Founded in 2011 but rising rapidly, CATL has already overtaken LG to become the top supplier of lithium-ion batteries globally. With 32% market share, CATL saw its battery sales soar 177% to reach $20.2 billion in 2021. CATL has pivotal supply partnerships with almost every major automaker in China: SAIC Motor, FAW Group, GAC Group, BMW, Volkswagen among many others. Besides Chinas government pushing plans for 20% EV adoption by 2025, CATL is also expanding in Europe and North America. CATL is investing $5 billion over 5 years in R&D to build next-gen sodium-ion and lithium-sulfur batteries. The geopolitical tension around sourcing critical battery elements like cobalt, nickel and lithium favors local champions like CATL in China. Even as rivals launch hundreds of new models, automakers have little choice but to partner with CATL given its scale and cost advantage in key raw materials.
Born out of Korea‘s third-largest conglomerate, SK Group, SK On has battery roots going back over three decades. Recently spun off the parent company, SK On has emerged as the third largest battery company globally capturing 6% market share. Reporting robust revenue growth of 43% annually, SK On raked in an impressive $13 billion from battery materials and sales last year. While SK On supplies batteries for many global automakers, its Ford partnership highlights its long-term potential. Both companies are investing $11 billion in Tennessee and Kentucky over the next decade targeting 129 GWh production for use in Ford EVs by 2030. With Ford aiming to go all electric in Europe by 2035, its massive 130 GWh BlueOval SYNC battery plants with SK On and CATL give it the production might to take pole position. As the battery arms race goes global, SK On‘s technology and patents covering materials, manufacturing and recycling processes equip it to battle CATL in the long run.
In summary, demand trends point to blistering growth ahead for lithium batteries as electric vehicles enter the mainstream. From an obscure industry just a decade ago, lithium battery makers have seen their fortunes multiply as high oil prices add impetus for countries to accelerate EV adoption. The technology innovations driven by intense competition have yielded rapid gains in battery density, power and charging times. Yet reliability, safety and supply chain concerns give established giants the edge currently. But as patents expire, expect software flexibility and proprietary chemistries to decide who‘ll win the battery wars powering our all-electric future.
