Global EV Battery Storage Market Remains Dominated by CATL's Position
The global electric vehicle (EV) battery market is experiencing a shift, with a tight battery supply forecast in Europe and North America. This tight market situation warrants attention, as key markets like China and the United States have seen an increase in battery consumption.
China, the world's leading market in the EV industry, is not expected to face a battery supply crisis until 2030. The Chinese market's dominant position is due to its growing battery consumption, with Chinese battery manufacturers steadily increasing their market shares. In August 2022, the Chinese market's battery consumption more than doubled from the same month the previous year, contributing to a global EV battery utilisation of 45.7GWh.
Meanwhile, Japanese manufacturers such as Panasonic have experienced a downward trend in 2022, with most posting growth rates lower than the market average. However, the Inflation Reduction Act (IRA) is expected to lead cell manufacturers to focus on investments in North America. The IRA, a significant factor to consider in the EV battery industry, could influence the focus of cell manufacturers towards North America.
The manufacturer most likely to respond strongly to investments in North America after the introduction of the IRA is CATL (Contemporary Amperex Technology Co. Limited). CATL and BYD were among the Chinese manufacturers that led the market growth in the worldwide top ten.
It's important to keep a watch on potential swings in battery supply and demand, especially as the IRA takes effect. The global energy storage in electric car batteries increased by 78.7% year on year in the first eight months of 2022, reaching 287.6GWh.
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Despite a period of poor customer trust during the COVID-19 pandemic, the EV battery industry has remained positive over the past 26 months. As the market continues to evolve, it will be interesting to see how the tight battery supply forecast in Europe and North America unfolds, and how the Inflation Reduction Act will shape the future of the EV battery industry.
