The Chinese market for electric vehicles is the largest in the world, which until now has allowed the local manufacturer of traction batteries CATL to be considered a world leader precisely because of its strong position in the domestic market. Still, statistics for the last half year show that outside of China, CATL is gearing up to oust South Korean company LG Energy Solution, which is officially keeping the palm.
The South Korean edition shares the statistical data from SNE Research Business Korea. A report released yesterday by the analysis agency said that LG Energy Solution surpassed CATL by 7.7 percentage points in market share outside of China in the first half of last year. In the first half of this year, the gap narrowed to 2.2 percentage points, but formally LG Energy Solution remains the market leader for traction batteries outside of China.
At the same time, it cannot be said that the Korean company’s business has stagnated in the last half year. The shipment volume of traction batteries increased by 55.1% year-on-year and the market share increased from 26.5% to 41.1%. Recent momentum has been driven primarily by strong sales volumes of the Tesla Model 3 and Model Y electric vehicles, the Volkswagen ID.3 and ID.4, and the Ford Mustang Mach-E. They all use LG Energy Solution traction batteries.
At the same time, CATL grew even faster, increasing its traction battery offering by 107.1% during the year and its market share from 18.8% to 38.9%. According to the authors of the study, CATL’s business is growing this year mainly due to markets outside of China. By the way, the batteries of this Chinese brand are used in the same Tesla Model Y and Model 3, in the flagship Mercedes-Benz EQS, as well as in electric vehicles and hybrids Volvo XC40 Recharge and MG-4. According to some reports, the new generation of Hyundai Kona electric vehicles will also use CATL batteries, which will further strengthen the Chinese supplier’s position outside the home market.