CATL Regains Top Spot in Global EV Battery Usage

[Asia Economy Reporter Park So-yeon] LG Chem, South Korea's largest battery company, and China's CATL are fiercely competing for the top spot in the global electric vehicle (EV) battery market.

LG Chem, which had maintained the number one position in global EV battery usage since March this year, was recently overtaken by CATL according to newly released statistics. However, the difference is small, and rankings are expected to continue fluctuating.

According to energy market research firm SNE Research on the 28th, from January to September this year, CATL ranked first with a total EV (EV, PHEV, HEV) battery usage of 19.2 GWh (gigawatt-hours), surpassing LG Chem.

CATL's EV battery usage accounts for 23.1% of the total usage (83.0 GWh).

LG Chem's cumulative usage from January to September this year was 18.9 GWh (22.9%), narrowly placing it second behind CATL.

Japan's Panasonic ranked third with 17.6 GWh (21.2%), while Samsung SDI and SK Innovation took fourth and fifth places with 5.1 GWh (6.2%) and 4.6 GWh (5.5%), respectively.

SNE Research explained that the increase in CATL battery volumes was supported by models such as the Peugeot electric car e-208, Chinese EV makers NIO's ES6, and Li Auto's Li Xiang One.

Earlier, SNE Research's data compiled last month showed LG Chem slightly ahead of CATL in EV battery usage from January to September this year, but the report released on the 26th of this month, based on additional data, reversed the rankings.

An SNE Research official stated, "Additional sales of EVs equipped with CATL batteries were confirmed in some European countries, increasing CATL's battery usage. Also, some battery volumes installed in Hyundai Kona EVs were confirmed to be from SK Innovation, not LG Chem, leading to adjustments in some figures."

SNE Research calculates company-specific EV battery usage monthly by multiplying the sales volume of electric, hybrid, and plug-in hybrid vehicles by the battery capacity installed in those vehicles.

Accordingly, SNE Research explains that differences in EV sales data collection methods, standards, and disclosure timings by country often lead to revisions in battery usage figures by company.

The global EV battery market is dominated by a "big three" system, with LG Chem, CATL, and Panasonic collectively holding about 67% market share, engaging in a close race for rankings.

China's CATL maintained the top position for three consecutive years from 2017 to 2019, supported by a strong domestic market. As of last year, CATL ranked first in EV battery usage (27.9%), Panasonic second (24.1%), and LG Chem third (10.5%).

Since then, LG Chem rapidly increased its market share, recording the highest annual cumulative battery usage for the first time in March this year and maintaining the top spot through August.

However, EV battery usage is heavily influenced by the sales volume of each company's battery-equipped vehicle models, making monthly battery usage rankings among the three companies highly competitive.

An industry insider said, "Even if some data are revised, the competition between LG Chem and CATL is so intense that rankings can change. Panasonic, whose growth has slowed after Tesla diversified its battery suppliers, is likely to fall behind, leading to a duopoly between LG Chem and CATL."

Meanwhile, LG Chem's battery business division will be spun off from LG Chem starting next month under the new name "LG Energy Solution."

The CEO of the newly established company "LG Energy Solution" has been appointed as Kim Jong-hyun, President of LG Chem's Battery Business Division.