{"id":158590,"date":"2022-08-08T15:25:40","date_gmt":"2022-08-08T19:25:40","guid":{"rendered":"https:\/\/mycarvoice.com\/news\/?p=158590"},"modified":"2024-04-04T16:16:33","modified_gmt":"2024-04-04T20:16:33","slug":"who-makes-electric-car-batteries","status":"publish","type":"post","link":"https:\/\/mycarvoice.com\/news\/who-makes-electric-car-batteries\/","title":{"rendered":"Who Makes Electric Car Batteries, and Where Are They Made?"},"content":{"rendered":"\n

As electric cars become more popular, people are starting to ask questions about who makes electric car batteries and where are they made?<\/strong><\/p>\n\n\n\n

According to a recent report, the top two electric car battery manufacturers are Contemporary Amperex Technology Co. and LG Energy Solution. Combined, these two companies make up 52% of the EV battery market. Additionally, out of the top ten of battery manufacturers, five are headquartered in China.<\/strong><\/p>\n\n\n\n

It should come as no surprise that, the battery production industry has been growing rapidly in the Asia-Pacific region due to the high demand for electric vehicles, and access to raw materials. <\/p>\n\n\n\n

Without a doubt however, China has emerged as the dominate player in the region for electric car batteries.<\/p>\n\n\n\n

To keep up with China’s EV battery dominance<\/a>, American and German auto manufacturers will quickly need to ramp up their own technological and production capabilities. The harsh truth is, US and German automakers are currently at a disadvantage<\/strong> when it comes to developing new EV models. They have to rely on batteries from foreign companies, which can hamper both production timelines and innovation.<\/p>\n\n\n\n

Because of this, American and German auto companies are exploring new ways to source critical battery components. They’re looking at options such as recycling batteries from older EVs, building their own battery plants, and even developing new types of batteries that don’t rely on rare earth minerals.<\/p>\n\n\n\n

One new EV battery manufacturing technology that holds lots of promise is dry electrode coating<\/a>. <\/p>\n\n\n\n

U.S. and German Automakers Look to Localize EV Battery Development<\/h2>\n\n\n\n

Shifting production away from China and to North America or Europe could help auto manufacturers avoid potential tariffs, as well as future disruptions to the global supply chain. Not to mention, producing battery cells in-house rather than relying on suppliers would give them more control over quality and costs.<\/p>\n\n\n\n

Despite the challenges, it’s clear that finding new ways to source electric car batteries has become a top priority for U.S. and German automakers.<\/p>\n\n\n\n

So the question of “who makes electric car batteries” really comes down to a very small list of just ten companies<\/strong> \u2013 all from Asia. As electric cars<\/a> become more popular, the need for quality batteries to power them grows as well. Let’s take a look at what companies are the top EV battery manufacturers. <\/p>\n\n\n\n

EV Battery Manufacturers<\/h2>\n\n\n\n

It might come as a surprise that there are only ten companies<\/strong> in the entire world that make batteries for electric vehicles. Out of those ten, the top four companies<\/strong> make up more than 80%<\/strong> of the market!<\/p>\n\n\n\n

However, none of these EV battery manufactures are headquartered in the United States. This may be surprising to some, considering the large amount of technological innovation that takes place in this country. Clearly as the demand for electric cars grows, so will the need for EV battery development in the U.S. and Europe.<\/p>\n\n\n\n

The following companies make up 95% of all EV battery production<\/strong>, and their products can be found on every single<\/strong> electric vehicle out there today.<\/p>\n\n\n\n

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  1. Contemporary Amperex Technology Co. (CATL)<\/strong>
    Market Share: 26%<\/em>
    Headquarters: China<\/em><\/li>\n\n\n\n
  2. LG Energy Solution<\/strong>
    Market Share: 26%<\/em>
    Headquarters: South Korea<\/em><\/li>\n\n\n\n
  3. Panasonic<\/strong>
    Market Share: 17%<\/em>
    Headquarters: Japan<\/em><\/li>\n\n\n\n
  4. Samsung SDI<\/strong>
    Market Share: 7%<\/em>
    Headquarters: South Korea<\/em><\/li>\n\n\n\n
  5. BYD Co.<\/strong>
    Market Share: 7%<\/em>
    Headquarters: China<\/em><\/li>\n\n\n\n
  6. SK Innovation<\/strong>
    Market Share: 4%<\/em>
    Headquarters: South Korea<\/em><\/li>\n\n\n\n
  7. China Aviation Lithium Battery (CALB)<\/strong>
    Market Share: 3%<\/em>
    Headquarters: China<\/em><\/li>\n\n\n\n
  8. Gotion High-Tech<\/strong>
    Market Share: 2%<\/em>
    Headquarters: China<\/em><\/li>\n\n\n\n
  9. Automotive Energy Supply Corp. (AESC)<\/strong>
    Market Share: 2%<\/em>
    Headquarters: Japan<\/em><\/li>\n\n\n\n
  10. Ruipu Energy Co. (REPT)<\/strong>
    Market Share: 1%<\/em>
    Headquarters: China<\/em><\/li>\n<\/ol>\n\n\n\n

    While there are some familiar names on the list, there are also a few lesser-known companies that are quickly making a name for themselves in the EV battery industry. <\/p>\n\n\n\n

    Where Are Electric Car Batteries Made?<\/h2>\n\n\n\n

    A look at the top EV battery manufacturers reveals that most of them are based in the Asia-Pacific region, with China being a particularly strong hub for electric car battery manufacturing.<\/p>\n\n\n\n

    In fact, China is the top EV battery producer in the world with 558 gigawatt hours<\/strong> of EV battery capacity annually. For reference, a gigawatt hour is 1 million kilowatt hours<\/strong>. Putting that into perspective, the battery of a Tesla Model 3 standard range<\/a> has an estimated total capacity of 50 kilowatt hours<\/strong>. The amount of battery capacity China is producing could supply almost 11.2 million<\/strong> Tesla Model 3 EV’s!<\/p>\n\n\n\n

    China also dominates other parts of the battery supply chain, such as mining and refining battery minerals like lithium and graphite.<\/p>\n\n\n\n

    Chances are at least one crucial component within an EV came from China. However, automakers want that to change and for good reason. They don’t want to remain dependent on China for these critical parts. <\/p>\n\n\n\n

    In fact, the Biden administration is putting over three billion dollars into the EV battery supply chain<\/a>. This investment will likely create new job opportunities and incentives for Americans to switch to electric cars. It’s a big bet on the future of electric cars. <\/p>\n\n\n\n

    How Does The US Stack Up Against Asia When it Comes to Battery Production? <\/h2>\n\n\n\n

    The United States makes 44 gigawatt hours<\/strong> of EV battery capacity. This is a far from China’s output of 558 gigawatt hours<\/strong> of energy production. In fact, the Tesla Giga Nevada<\/a> (or Gigafactory 1) is outputting a whopping 37 gigawatt hours<\/strong> of annual capacity. This makes it the single largest<\/strong> battery factory in the entire world. <\/p>\n\n\n\n

    But the fact still remains, the United States trails China in total gigawatt hour output. But for how long will this be the case? The answer to this question could have large implications for the US economy. If the US can close the gap, they may be able to establish themselves as a global leader in electric car battery production. <\/p>\n\n\n\n

    Investing in EV Battery Production<\/h2>\n\n\n\n

    Recently, automakers have been investing billions<\/a> in EV battery factories. Hyundai<\/strong> is spending 5.5 billion on a battery and EV vehicle plant in Georgia, and is expected to open during the first half of 2025. It’s estimated this new factory will have an annual production capacity of 300,000 vehicles, and will create roughly 8,000 new jobs. <\/p>\n\n\n\n

    Ford<\/strong> announced plans to invest $11.4 billion to build Blue Oval City and Blue Oval SK Battery Park in Tennessee and Kentucky. General Motors<\/strong> announced it would spend $4 billion to expand its Orion Assembly Plant in Michigan to build electric vehicles. Additionally, GM is spending $2.6 billion to build a battery manufacturing facility also in Michigan.<\/p>\n\n\n\n

    Stellantis<\/strong> and Samsung SDI announced they would invest more than $2.5 billion and create 1,400 jobs at a planned EV battery plant in Kokomo, Indiana.<\/p>\n\n\n\n

    EV Battery Production Process<\/h2>\n\n\n\n

    The production of lithium-ion batteries has increased at an alarming rate over the past decade. As a result, innovative techniques are being developed to improve the efficiency and eco-friendlyness of mining, extraction, and processing of the raw materials necessary for EV batteries.<\/p>\n\n\n\n

    However, once the raw materials have been gathered, the EV battery production process includes:<\/p>\n\n\n\n