- 2023 global passenger EV battery installed capacity grew 44% YoY
- Average battery capacity installed increased by 4% YoY helping to extend driving ranges
- Chinese suppliers continue to dominate; now account for over two-thirds of the global market
- Long-term opportunities attractive for Korean, Japanese, European makers on tech breakthroughs, geo-politics
Global battery installed capacity for passenger EVs grew by 44% YoY in 2023, according to Counterpoint’s latest Global EV Battery Tracker. A key driver was increased average battery capacity per vehicle coupled with continued growth of EV sales at 38% YoY in 2023.
Global Average Passenger EV Battery Capacity (kWh) by Regions, 2022 vs 2023
Average battery capacity continues to be an important metric, and expanding range, especially for mid-to-high EVs, is a priority for OEMs. “Across the US and Europe, long-range EVs are booming and this is what’s going to drive sales through the long term,” says Liz Lee, Associate Director. “We could have seen average capacities go even higher if not for the big expansion of entry-level EVs in China.”
Domestic battery suppliers are enjoying home field advantage and continued demand overseas to grab further market share. Chinese battery makers grew faster than most others to account for more than two-thirds of the world’s EV battery capacity last year, with CATL and BYD the main beneficiaries of market share gains.
Key EV Battery Supplier Installed Capacity (GWh) Share, YoY Growth
In the short-term, OEMs are likely to continue the shift from performance-centered to price-centered EVs as the market slows, leveraging strategies to expand sales of cost-effective EVs with Chinese LFP batteries.
“This year we’re still forecasting double-digit EV growth across all regions which will help keep overall battery capacity buoyant,” says Lee.
For players like CATL, scale is a big competitive advantage but it also leaves the supplier more exposed to any slowdown in EV demand as well as potential efforts to limit growth in Europe and the US. “Long term we need to also consider further battery cost reductions on tech breakthroughs which, coupled with geo-political factors, could see more promising growth avenues emerge for non-Chinese suppliers,” states Neil Shah, VP of Research.
