Growing Presence of CATL... Gradually Expanding into Electric Vehicle Markets Outside China

Tesla factory in Shanghai, China

[Asia Economy Reporter Choi Dae-yeol] Electric vehicle battery manufacturer CATL is increasing its market share in countries other than China. Backed by a massive domestic market, it has risen to become the world's number one company, and now the sales of electric vehicles equipped with CATL batteries have surged in other countries such as Europe.

According to market research firm SNE Research's data on electric vehicle battery market share from January to April this year, CATL's share in markets excluding China reached 10.1%, ranking fourth among major battery manufacturers. Compared to the same period last year, battery usage increased about fourfold, marking the largest growth among the top companies.

SNE Research explained, "Sales of pure electric vehicles such as the Tesla Model 3, which is made in China and exported to Europe, as well as the Peugeot e-2008 and Opel Corsa, have increased," adding, "CATL's status is rapidly rising in markets outside China."

CATL is the overwhelming number one battery maker within China. Based on domestic volume, it competes with LG Energy Solution for the global number one spot. With electric vehicle sales increasing in China this year following last year, and Tesla?the world's number one electric vehicle manufacturer?increasing production in China, CATL's market share has also grown. Looking at April alone, the growth rate of battery usage increased more than tenfold compared to the same period last year.

Tesla typically uses Panasonic batteries, but in China, it uses batteries from both LG Energy Solution and CATL. Until last year, CATL held a single-digit market share and ranked fifth in non-China markets, but this year it has steadily risen, surpassing SK Innovation.

From January to April, LG Energy Solution ranked first in markets outside China with a market share of 34.9%. Panasonic ranked second with 27.1%, and Samsung SDI was third with 10.2%. SK Innovation fell one rank to fourth with 9.8%. Looking only at markets outside China, a duopoly between LG and Panasonic is evident, with Samsung, CATL, and SK fiercely competing for third place. The top five battery manufacturers hold a combined market share of 92%. SNE Research explained, "The three Korean battery companies are fiercely competing with CATL, Panasonic, and others in markets excluding China."