LG Chem of South Korea was reported to be the largest used electric vehicle battery in the world for January-June 2020. Reports published by SNE Research said that while the global battery usage declined by 23% compared to the same time last year, LG Chem’s usage increased by a whopping 82.8% and became 10.5 GWh.
Korean competitors SK Innovation increased by 66% to reach 1.7 GWh, and Samsung SDI’s usage was 2.6 GWh with an increase of almost 35%.
The second and third spots were taken by China’s CATL (Contemporary Amperex Technology Co. Ltd) and Japan’s Panasonic respectively, which showed a decline in usage, compared to the same last year.
The increase in Korean numbers and the decline in Chinese and Japanese numbers moved the EV industry spotlight to South Korea. The increase in usage was mainly due to a rise in sales of cars featuring these batteries.
LG Chem supplies batteries for Tesla Model 3, the largest selling EV in the current market, and Renault Zoe, the second-largest selling EV, along with Audi E-Tron EV (95 kWh) and Porsche Taikan EV. With Tesla Model 3 selling more than 35,000 units in June 2020, LG Chem is the clear winner in this competition of battery usage.
Asian dominance in the Electric Vehicle (EV) market
Asia is arguably the most important location in the Electric Vehicle industry because it manufactures more than 60% of EV batteries. The top three companies in the list of highest battery usage are South Korea’s LG Chem, China’s CATL, and Japan’s Panasonic.
SNE Research produced a report stating that LG Chem is responsible for 24.2% of the EV battery market in 2020 YTD. Closely following suit are CATL with 22.3% and Panasonic with 21.4%.
The Korea Herald reports that LG Chem and CATL are enclosed in a fierce battle to create bigger global battery production capacity. CATL’s 105 GWh reserve easily trumps LG Chem’s 64 GWh today. However, the gap is supposed to be narrowed in the next two years.
|Battery reserve||LG Chem||CATL|
|Today||64 GWh||105 GWh|
|Future||120 GWh (2021)||136.6 GWh (2022)|
Reports were stating that Panasonic is producing batteries for Tesla that are 20% more efficient than the current ones in use.
This healthy competition is only boosting the EV battery market in Asia, making it a hub for big manufacturers like Tesla, Renault, and Audi.