The global electric vehicle market is expected to balloon from 6.5 million unit sales in 2021 to 26 million by 2030. This phenomenal growth is catalyzed by falling battery prices, governmental carbon neutrality goals, and automaker investments measured in the billions. Powering this revolution are lithium-ion batteries that hold the key towards higher vehicle range and sustainable transportation.
Industry reports project the lithium battery market to expand from a valuation of $44.2 billion in 2022 to over $139.1 billion by 2030, clocking nearly 20% CAGR. With demand outpacing supply, battery technology improvements and production capacity expansion is set to shape the future.
Identifying the major players steering this growth offers insights into regional strategies, chemistries adopted, supply chains secured, and next-gen innovations on the horizon towards cheaper, safer and higher density batteries. This future outlook also must balance environmental considerations around responsible sourcing of materials like lithium, cobalt as well as prioritize recycling and second-life usage.
This article analyzes the top 7 lithium ion battery manufacturers worldwide helping drive the EV revolution today and tomorrow.
SK On is the battery subsidiary launched by South Korean conglomerate SK Innovation in 2021 to focus exclusively on the high-growth EV space, separate from parent company’s existing oil and chemical businesses.
SK Innovation started producing lithium-ion batteries in 1996 when the market was still nascent, catering only to electronic devices. The company ventured into developing EV batteries in 2005, cementing technical know-how early on.
SK On battery production capacity over time. Source: Company Reports
In 2021, SK On‘s capacity reached 40 GWh annually, making it the world‘s 5th largest lithium battery company with 6% market share. 2022 capacity is expected to hit 65 GWh.
Their mid-term goals are ambitious – SK On aims to expand global production capacity over 12x to 500 GWh annually by 2030. This would cement them firmly among the top 3 battery giants as the EV industry grows.
Auto Partners & Projects
SK On has inked partnerships with major automakers in South Korea, Europe and China including:
- Daimler AG – To develop next-gen battery cells and packs from 2022
- Hyundai Motor Group – New joint venture to produce 62 GWh annually by 2025
- Geely Auto Group – China JV for 7.5 GWh battery plant operational by 2023
- BAIC Group – China JV to eventually manufacture 120 GWh/year
Most recently, a high-profile 2021 deal with American automaker Ford envisions massive future production targeted for the United States as demand ramps. The landmark project christened BlueOval SK is centered around building integrated EV battery factories boasting 129 GWh capacities across two phases. Groundbreaking is imminent on these twin “megasites” in Tennessee and Kentucky over a 3618 acre area, with 87 GWh output targeted by 2027.
Future chemistries adopt tri-layer or four-element tablets factoring Manganese or Silicon components for increased energy density. Cobalt usage also trends lower addressing sustainability. Lithium is centrally sourced from Australia’s Linc Minerals under a five-year 7000 ton supply contract.
Founded in 2011 and headquartered in Ningde, China – Contemporary Amperex Technology Co. Limited (CATL) has swiftly become the largest lithium-ion battery manufacturer worldwide on the back of China’s huge EV market.
CATL battery production and revenue growth. Source: Company financials
Metrics Snapshot
- Global market share of 32% by capacity
- 2021 production capacity of 96.7 GWh annually
- 13 manufacturing facilities worldwide including Germany and Hungary
- $20B+ revenue in 2021, up 154% Year-on-Year
- Raised $7.5B funding so far, valued at nearly $150B
Strategic partnerships with leading EV brands secure orders, technical collaboration and long term supply contracts. Key customers include BMW, Volkswagen, Toyota, Tesla among others spanning North America, Europe and China.
Core chemistries are Lithium Iron Phosphate (LFP) chosen for stability and Nickel-rich NMC variants for higher density. Cobalt usage is continually optimized for cost, safety and sustainability factors.
Ongoing R&D targets silicon or sodium-ion anodes, solid state electrolytes and extreme fast charging. 2022 milestones include China’s first carbon-neutral battery facility and 20GWh German plant with VW.
LG Energy Solution is a South Korean firm and crucial supplier that spun off from LG Chem as an independent subsidiary in 2020 solely focused on EV batteries, while LG Chem continues chemical & materials businesses.
LGES stated mission lies in pioneering “innovative solutions that will become the number one energy solution company creating sustainable value for customers”. Prior fiscal discipline and operating leverage bodes well – since 2018 annual sales rocketed 169% while operating margins doubled to 9.4%, beating industry averages.
As per its 2025 blueprint, R&D investments will near $20B focused on next-gen cell technologies. Production capacity is on track to breach 200GWh this year thanks to its extensive global supply network – ranking second only to CATL on scale. Core lines in Poland, China and USA feed European and American carmaker demand.
Market Share & Financial Growth Trajectory
LGES revenues in 2021 totaled nearly $16 billion on sales of 95GWh, capturing 20% market share. Since 2016, their market share has doubled through marquee supply pacts with renowned EV makers.
Safety First Innovations
Batteries carry risks around thermal runway if faulty or damaged. LGES focuses extensively on safety – their NMC cells boast lowest 1-in-25 million failure rates industrywide. Their cylindrical cells outperform on nail penetration, crush, vibration and other extreme test abuse scenarios.
LGES also pioneered polyaramid holding trays securing pouch cells that withstand very high temperatures, preventing adjacent cell damage. Further advances utilize solid state electrolytes, artificial intelligence for predictive diagnostics and blockchain-based usage data analytics.
Sustainable & Responsible
With recyclability and responsible sourcing as ongoing concerns for Li-ion batteries, LGES aims to utilize 95% recycled materials by 2030. They are also working on innovative reuse applications for EV batteries once primary life cycle ends. Cobalt usage is trending downwards through newer chemistries using high-nickel and low-cobalt. ALl virgin natural resources are ethically sourced ensuring transparency across their supply chain. Eight global facilities including in Poland and China are now powered by renewable energy.
Founded in 1918, the Japanese electronics giant Panasonic entered lithium-ion battery production in 1991 as suppliers for camcorders and laptops. In 2003, an early partnership with maverick automaker Tesla focused on developing batteries for their upcoming electric roadsters and fleet.
The Gigafactory 1 site began operations in Nevada, USA 2014 – here Panasonic manufactures and supplies 2170 lithium-ion cells for all of Tesla’s electric vehicle models sold globally. 2021 sales from this facility alone touched 38 GWh as Tesla deliveries surged.
Overall Panasonic group revenue from automotive batteries and solutions totaled $14.5 billion in 2021 – capturing nearly 12% market share as the 3rd largest player. Beyond Tesla, Panasonic also has had key partnerships with Toyota, Honda and Yamaha‘s EV motorcycles business over the decades.
A 2020 joint venture with Toyota named Prime Planet Energy and Solutions Inc. (PPES) targets growing electrification demand out of Japan for Toyota’s hybrid and all-electric fleet. By 2030 the partners envision mammoth 65 GWh dedicated capacity online.
Core chemistry relies on nickel-rich NMC cathodes that offer higher energy density crucial for vehicle range. Cobalt usage has dropped below 7% while R&D shifts towards even higher nickel NCA chemistry. In 2020 Panasonic debuted its 4680 large format cylindrical battery jointly designed with Tesla.
Ongoing quality targets aim for less than 1 battery failure per billion cells produced – nearly 6 sigma capability. Panasonic’s proven expertise and exacting standards position them strongly as lithium demand spirals from surging EV sales worldwide.
Samsung SDI is the battery manufacturing arm under the Samsung group umbrella founded in 1970 in South Korea. Their lithium-ion battery (LiBs) business formally began in 1991 intending to supply rechargeable cells for emerging consumer electronics like camcorders.
Over the decades Samsung SDI has invested significantly into LiB production plants and pioneering R&D. This focus has led Samsung SDI capture over 5% market share in 2021, primarily across portable IT devices and appliances.
However in recent years, the astounding growth in EVs has diversified focus. Samsung SDI aims to deploy its technical capabilities nurtured over 30 years towards manufacturing high-capacity batteries for electric vehicles as well going forward.
In 2021 Samsung SDI earned revenues of nearly $12 billion from sales of LiBs and electronic materials. Their product lineup spans 50+ variants covering cylindrical, prismatic and pouch form batteries catering capacity needs from 1Wh (cellphone) up to 500kWh (ESS grid storage).
Lithium cathode chemistries adopt NCA, NCM and LFP types where Cobalt proportion is continually optimized between 8-20%. Future technologies target solid state designs and silicon composite anodes for higher densities.
With 8 global manufacturing locations and 4000+ strong battery R&D staff strength, Samsung SDI is gearing up on multi-billion dollar investments over this decade to reinforce foothold among leading lithium battery makers.
Founded in 1995, China’s BYD Co Ltd (Building Your Dreams) is quite unique being both a prominent EV manufacturer as well as one of the largest lithium battery producers globally. Their veritical integration allows optimizing battery capabilities and cost economics specifically customized per vehicle model manufactured.
With over 20 million EVs estimated on Chinese roads already, BYD leverages home advantage capturing nearly 11% market share out of China’s lithium battery capacity. Their 66 GWh annual output services electric cars, buses, trucks, forklifts, bikes and energy storage systems.
In 2021 BYD Auto delivered 600,000 electric vehicles including top selling Han and Tang car models and best-selling eBus fleet. By 2025 they aim to sell 1.5 million EVs annually powered by their reliable and cost-effective in-house produced lithium-ion batteries.
Battery Tech Focus
BYD Lithium batteries feature both Lithium Iron Phosphate (LFP) and Nickel Cobalt Manganese (NCM) cathode chemistry combinations. LFP suits most cars and buses needing stability, safety and sustained cycle life. NCM aids higher density demands from long range passenger vehicles.
Unique Blade Battery design allows optimizing space utilization improving range 10% over rectangular cells. These batteries demonstrate excellent safety – short circuit tests validate zero fire even after nail penetration. BYD also leads on lifetime mileage longevity – their LFP chemistry easily achieves 6000 charge cycles.
With championing sustainable manufacturing as continuing objective, BYD has additionally invested into solar power equipment, LED lighting systems and electric mining dumpers to round out their production ecosystem.
Founded in 1998, China Aviation Lithium Battery (CALB) develops and produces high performance Li-ion batteries primarily catering to electric transportation needs. Based in Luoyang, CALB‘s 2021 sales exceeded $950M capturing nearly 4% market share.
With facilities in China, Europe and USA, CALB supplies safe, reliable and cost effective batteries customized depending on application for cars, buses, trucks, boats, forklifts, mining machinery and renewable energy storage globally.
Key customers include automakers Geely, SAIC, DongFeng in addition to bus manufacturers Yutong, Proterra and Volvo. CALB‘s marathon life batteries have demonstrated over 7000 usage cycles in real world conditions – among the highest.
,Flexible & Safe Solutions
CALB products include 12V and 48V ranges outputting maximum 180Ah capacity alongwith battery management systems (BMS). Lithium iron phosphate (LFP) chemistry balances safety and thermal stability. Polymer gel electrolytes ensure leakage proofing.
Rugged mechanical design withstands vibration, crush, fire and electrical abuse without damage. Customizable pack shapes/sizes integrate easily into client device spaces. AI simulation modelling enables quickly testing thousands of use case scenarios matching expected duty cycles.
With eyes on the bigger mobility picture, CALB actively partners across automotive value chains in supplying specialized lithium batteries purpose-built for demanding vehicle requirements using proprietary process controls and automation.
The 7 companies above represented over 85% of global lithium-ion battery production capacity in 2021, excluding smaller specialized manufacturers. The enormous electric vehicle wave sweeping across North America, Europe and Asia promises a sustained boom driving lithium-ion batteries to a $139 billion valuation by 2030.
Established technology leaders and innovative startups alike continue investing tens of billions within proprietary R&D and parallel production capacity growth chasing the automotive battery crown.
With sustainability in sharp focus, responsible and ethical mining practices, reduced cobalt usage and end-of-life recycling will shape industry direction going forwards. Electrification is poised to transform human mobility towards a greener future. But this hinges on battery advancements delivering affordably priced vehicles exceeding over 500 kms range on a single charge using safe, durable andabus technology.
