WHAT IS THE INDUSTRY OUTLOOK AND MARKET SIZE FOR ELECTRIC VEHICLE BATTERIES?

WHAT IS THE INDUSTRY OUTLOOK AND MARKET SIZE FOR ELECTRIC VEHICLE BATTERIES?

CATL’s revenue increased from 5.7 billion Chinese yuan in 2015 to reach 45.5 billion Chinese yuan in 2019. BYD’s revenue decreased from 130 billion Chinese yuan in 2018 to reach 127.7 billion Chinese yuan in 2019. The attached spreadsheet contains some details about the battery business segment of Panasonic, LG Chem, Samsung SDI, Bosch, CATL, and BYD.

Electric Vehicle Battery – Market Size

  • According to Verified Market Research, the global market size of the electric vehicle battery industry will increase from $35.16 billion in 2019 to reach $133.46 billion by 2027.
  • The market will grow at a CAGR of 18.05% between 2020 and 2027.
WHAT IS THE INDUSTRY OUTLOOK AND MARKET SIZE FOR ELECTRIC VEHICLE BATTERIES?
Electric Vehicle Battery Market Analysis & Forecast, 2020-2027
  • The chart below shows the market share of the top players in the EV battery market. Using these market shares and the market size, we calculated each company’s revenue from EV batteries.
  • Market Share
  • Panasonic: EV battery revenue = market size X market share = $35.16 billion X 20.4% = $7.17 billion.
  • LG Chem: EV battery revenue = market size X market share = $35.16 billion X 24.6% = $8.65 billion.
  • Samsung SDI: EV battery revenue = market size X market share = $35.16 billion X 6% = $2.1 billion.
  • CATL: EV battery revenue = market size X market share = $35.16 billion X 23.5% = $8.26 billion.
  • BYD: EV battery revenue = market size X market share = $35.16 billion X 6% = $2.1 billion.

Panasonic

  • Panasonic breaks down its revenue into the following segments: Appliances, Life Solutions, Connected Solutions, Automotive, and Industrial Systems. The Automotive segment consists of automotive solutions and automotive batteries (Tesla Energy BD and Automotive Energy BD).
  • The company provides the sales of the whole automotive segment, instead of breaking it down by sub-segment.
  • Revenue Breakdown
  • Overall, the Automotive segment continues to struggle, with “sales shrunk by 7% and the category remains unprofitable.”
  • Moreover, in the Automotive Batteries sub-segment, sales increased. “Sales increase of cylindrical batteries from the investment effect of production expansion at the North America factory for Tesla exceeded sales decrease from Japan factory and prismatic batteries downturn in North America.”
  • Automotive Segment

LG Chem

  • LG Chem breaks down its revenue into the following segments: Petrochemicals, Energy Solutions, Advanced Materials, Life Sciences, and Common & Others. The Energy Solutions segment, which generated 8.35 trillion Korean Won in 2019, consists of mobile batteries, automotive batteries, electricity storage batteries (ESS), and others. However, the company provides the sales of the whole Energy Solutions segment, instead of breaking it down by sub-segment.
  • LG Chem’s sales of batteries for EVs accounted for less than 30% of the company’s overall sales. “Despite the setbacks, LG Chem continues to invest heavily in EV batteries, including a joint venture with U.S. automaker General Motors to build a new factory that will produce batteries for electric cars. LG Chem forecasts battery sales will rise 79% to 15 trillion won in 2020, which would put the business on par with the petrochemical operations.”
  • LG Chem

Samsung SDI

  • Samsung SDI breaks down its business into two segments: Energy Solutions and Electronic Materials. The Energy Solutions segment, which generated 7.7 trillion Korean Won in 2019, consists of small-sized li-ion battery, automotive battery, and ESS (Energy Storage System). However, the company provides the sales of the whole Energy Solutions segment, instead of breaking it down by sub-segment.
  • Samsung SDI

Bosch

  • Bosch breaks down its revenue into four segments: Mobility Solutions, Industrial Technology, Energy & Building Technology, and Consumer Goods.
  • In 2015, the company bought Seeo, a US startup that produces solid-state lithium-ion batteries. By 2018, Bosch decided to sell Seeo and “abandon electric-vehicle battery manufacturing.”

Contemporary Amperex Technology Co. Limited (CATL)

  • Despite our exhaustive search, we were unable to locate any publicly available annual report. However, we were able to find some market reports and industry-related reports that discussed the company’s performance.
  • CATL’s revenue increased from 5.7 billion Chinese yuan in 2015 to reach 45.5 billion Chinese yuan in 2019.
  • CATL
  • CATL’s major battery business segments are “the NEV power battery system, energy storage system, and the lithium battery material.” The revenue breakdown of these segments is the following:

BYD

  • BYD’s revenue decreased from 130 billion Chinese yuan in 2018 to reach 127.7 billion Chinese yuan in 2019.BYD
  • BYD “is principally engaged in the automobile business which includes new energy vehicles and traditional fuel-engined vehicles, handset components and assembly services, rechargeable battery and photovoltaic business, as well as the urban rail transit business segment which the Group has actively developed.” In 2020Q1, the rechargeable batteries and photovoltaic segment generated RMB4,619 million.

EV Battery Nickel Demand

  • According to Adamas Intelligence’s EV Battery Capacity and Battery Metals Tracker, in 2019, “over 59,000 tonnes of nickel were deployed globally in batteries of newly sold passenger battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs), an increase of 39% over the year prior.”
  • EV battery nickel deployed by top players:
    • Panasonic: 51%
    • CATL: 15%
    • LG Chem: 12%
    • BYD: 7%
    • Envision AESC: 3%
  • Sixty percent of Panasonic’s nickel deployment went into nickel-rich lithium-ion cells used by Tesla BEVs, and 39% went into nickel-metal hydride cells and Li-ion cells used by Toyota-group HEVs.

EV Battery Cobalt Demand – Top Cell Suppliers

  • According to Adamas Intelligence’s EV Battery Capacity and Battery Metals Tracker, in 2019, “over 14,400 tonnes of cobalt were deployed globally in batteries of newly sold passenger battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs), an increase of 34% over the year prior.
  • EV battery cobalt deployed by top players:
  • CATL: 21%
  • LG Chem: 20%
  • Panasonic: 17%
  • BYD: 11%
  • Envision AESC: 9%

Research Strategy

We started our search by looking through each company’s website, annual reports, quarterly reports, and press releases. However, none of the companies breaks down its business (revenue and the number of units) between EV, ESS, 2-3 wheel electric scooters, and others, as well as the shipment breakdown of each segment into cells, modules, and packs.
Next, we scoured through the companies’ social media accounts, such as LinkedIn and Facebook, and business databases like Crunchbase, PrivCo, ZoomInfo, and Pitchbook, among others. We also combed through press releases and media sites for information regarding the requested data. Unfortunately, after scouring the mentioned sources, there was no information available in the public domain for the remaining data points for the requested companies. The lack of data is either due to the companies financial policy or to their method of constructing the annual report. Thus, we filled the corresponding cells with N/A.

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