China’s Electric Vehicle Battery Market: A Growing Force in the Electric Mobility Revolution

China’s electric vehicle (EV) industry has been witnessing remarkable growth, and at the heart of this transformation lies the booming electric vehicle battery market. The recently released data for June 2023 by the China Battery Industry Promotion Alliance reveals impressive figures that highlight the industry’s sustained momentum and its role in propelling the nation’s electric mobility ambitions.

1. June 2023 Electric Vehicle Battery Production and Trends

During the month of June 2023, China’s electric vehicle battery production reached a substantial 60.1 GWh, indicating a significant year-on-year growth of 45.7% and a month-on-month increase of 6.3%. This surge in production demonstrates the continued acceleration of the EV market and the increasing demand for high-quality power storage solutions.

Examining the breakdown of battery types, we find that:

Ternary Batteries: Ternary batteries contributed 17.7 GWh to the total production, accounting for 29.4% of the overall output. Although still significant, ternary battery production experienced a slight year-on-year decline of 4.2% and a month-on-month decrease of 4.9%.
Lithium Iron Phosphate (LFP) Batteries: LFP batteries dominated the market with a production of 42.2 GWh, representing 70.3% of the total output. Notably, LFP battery production witnessed remarkable year-on-year growth of 86.3% and a month-on-month increase of 11.7%.

2. Cumulative Production Trends (January to June 2023)

The data for the first half of 2023 (January to June) underscores the industry’s sustained growth:

Cumulative electric vehicle battery production for this period reached an impressive 293.6 GWh, showing a robust year-on-year growth of 36.8%.
Ternary batteries accounted for 99.6 GWh of the cumulative production, making up 33.9% of the total output and achieving a year-on-year growth of 12.6%.
LFP batteries dominated the market, contributing 193.5 GWh to the cumulative production, representing 65.9% of the total output and achieving an exceptional year-on-year growth of 53.8%.

3. Sales Figures

In June 2023, China’s electric vehicle battery sales hit 52.2 GWh, demonstrating a commendable year-on-year growth of 9.9%.

Ternary battery sales accounted for 18.4 GWh, comprising 35.2% of the total sales, but experienced a year-on-year decline of 16.8%.
LFP battery sales reached 33.7 GWh, comprising 64.5% of the total sales and achieving a noteworthy year-on-year growth of 33.0%.

4. Cumulative Sales Trends (January to June 2023)

For the first six months of 2023:

Cumulative electric vehicle battery sales reached a significant 256.5 GWh, indicating a cumulative year-on-year growth of 17.5%.
Ternary batteries accounted for 99.8 GWh of the cumulative sales, making up 38.9% of the total sales and achieving a cumulative year-on-year growth of 10.9%.
LFP batteries accounted for 156.3 GWh of the total sales, representing 60.9% of the cumulative sales and achieving a cumulative year-on-year growth of 22.0%.

5. Battery Exports and Market Players

China’s prowess in the electric vehicle battery market extends to its role as a major exporter of EV batteries. In June 2023, Chinese electric vehicle battery enterprises exported a total of 10.0 GWh.

Ternary batteries constituted 6.6 GWh of the total exports, making up 66.3% of the exported batteries.
LFP batteries accounted for 3.3 GWh of the total exports, representing 32.5% of the exported batteries.
For the January to June 2023 period, China’s electric vehicle battery enterprises exported a cumulative total of 56.7 GWh.
Ternary batteries constituted 39.4 GWh of the total exports, making up 69.4% of the exported batteries.
LFP batteries accounted for 17.2 GWh of the total exports, representing 30.3% of the exported batteries.

6. Battery Installations in EVs

The installation of electric vehicle batteries in EVs showed consistent growth in June 2023, with a total of 32.9 GWh.

Ternary batteries constituted 10.1 GWh of the total installations, making up 30.6% of the installed batteries. Despite this, ternary battery installations experienced a slight year-on-year decline of 13%.
LFP batteries accounted for 22.7 GWh of the total installations, representing 69.1% of the installed batteries and achieving a significant year-on-year growth of 47.5%.

7. Cumulative Installation Trends (January to June 2023)

For the first half of 2023:

Cumulative electric vehicle battery installations reached 152.1 GWh, indicating a cumulative year-on-year growth of 38.1%.
Ternary batteries constituted 48.0 GWh of the total installations, making up 31.5% of the installed batteries and achieving a cumulative year-on-year growth of 5.2%.
LFP batteries accounted for 103.9 GWh of the total installations, representing 68.3% of the installed batteries and achieving a cumulative year-on-year growth of 61.5%.

8. Market Players and Their Contributions

In June 2023, a total of 43 electric vehicle battery enterprises supported the installation of EVs, marking a significant increase of 5 companies compared to the same period last year.

The top 3 electric vehicle battery enterprises accounted for 26.8 GWh of the total installations, representing 81.3% of the market share.
The top 5 electric vehicle battery enterprises accounted for 29.5 GWh of the total installations, capturing an impressive 89.5% of the market share.
The top 10 electric vehicle battery enterprises accounted for 32.0 GWh of the total installations, dominating a whopping 97.2% of the market share.

9. Conclusion: China’s Electric Vehicle Battery Market Marches Forward

The data for June 2023 and the cumulative figures for the first half of the year demonstrate China’s remarkable progress in the electric vehicle battery market. The substantial growth in production, sales, exports, and installations underscores the nation’s commitment to fostering a robust EV industry and promoting sustainable mobility solutions.

The dominance of LFP batteries in both production and installations highlights their increasing popularity among EV manufacturers and consumers, driven by their safety, reliability, and cost-effectiveness. However, the market share of ternary batteries remains significant, and efforts to improve their performance and cost competitiveness are ongoing.

As China continues to invest in research and development, battery technology innovation, and policy support for the EV industry, we can expect the nation’s electric vehicle battery market to further consolidate its position as a global leader in the electric mobility revolution.

Photo from Wikimedea

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