ALTERNATIVE POWER REPORT
CleanTechnica’s 2023 provisional report shows a 40% growth in demand for lithium-ion batteries in the automotive sector, reaching 712 GWh. CATL and BYD lead the market, with CATL holding a 34% share due to its successful partnerships and innovative battery technologies. BYD moved into second place with 16% share, up from 14% in 2022, replacing LG, which slid to third place with a 15% share. It had 17% in 2022. BYD grew 59% YoY.
CATL produced 243,000 units in 2023, up from 164,000 units in 2022. BYD produced 116,000 units in 2023, an increase from 73,000 in 2022.
LG lost share in 2023 due to the lack of new orders, GM’s troubled ramp-up of its new EVs, the end of life of some important volume models, and also the fact that volume from some clients, like Mercedes or Ford, is being diverted to the competition.
The sector’s growth is driven by larger battery capacities in new EV models, and the top three manufacturers account for two-thirds of total battery deployment.
Source: CleanTechnica Read The Article
PSR Analysis. The global battery industry is expected to continue its rapid growth, driven by the expanding EV market and technological advancements. Companies like CATL and BYD are well-positioned to capitalize on this trend, but the industry must address challenges such as material scarcity and environmental impacts.
However, market dominance by a few companies could limit competition and innovation, and recent rapid growth may strain raw material supplies and manufacturing capabilities. The future success of the battery sector will hinge on balancing growth with sustainability and innovation. PSR
Guy Youngs is Forecast & Adoption Lead for Power Systems Research
